How to Start Your Own LLC in Maryland

In this step-by-step guide, you'll learn how to choose a compliant LLC name, file your Articles of Organization, appoint a resident agent, draft an operating agreement, obtain an EIN, and meet ongoing state compliance obligations so you can begin operating your Maryland LLC with confidence.

1. Name Your Maryland LLC

Choosing the right name for your LLC is one of the most important early steps in forming your business. Your business name represents your brand, communicates what you do, and forms the first impression for customers, lenders, and partners. A strong name should be distinctive, easy to remember, and aligned with your business purpose.

Before finalizing a name, it helps to clearly define your business concept. Understanding what products or services you will offer and who your target audience is can guide you toward a name that fits your long-term goals. Many entrepreneurs also ask trusted friends, colleagues, or mentors for feedback, which can help identify potential issues or confusion you may not notice yourself.

Once you have a shortlist of names, conduct a general web search to see whether similar businesses already exist and whether domain names are available. This step can prevent branding conflicts later. Online business name generators can also be used for inspiration, but they should supplement—not replace—your own creativity and research.

Check Name Availability in Maryland

After narrowing down your choices, you must check name availability through the Maryland Business Express website. This ensures your desired name is not already registered or deceptively similar to another business operating in the state.

Maryland LLC Naming Requirements

Maryland has specific naming requirements for LLCs. Your business name must include the words "Limited Liability Company" or an approved abbreviation such as LLC or L.L.C. It cannot include language that could cause your LLC to be confused with a government agency. Additionally, the name must be distinguishable from all other registered business names in Maryland.

Certain words—such as bank, insurance, or university—require state approval, and your name cannot imply that your business is engaged in activities beyond what is stated in your Articles of Organization.

Check Federal Trademarks

After confirming state availability, it's also wise to search the U.S. Patent and Trademark Office (USPTO) database to ensure the name is not federally trademarked. This helps protect your business if you expand beyond Maryland.

Reserve Your Maryland LLC Name

If you're not ready to file your LLC immediately, Maryland allows you to reserve a business name. To do this, you must download the name reservation form from the Maryland Business Express website and submit it by mail. Online name reservation is not available.

Completed forms should be mailed to:

Department of Assessments and Taxation
301 W. Preston St.
Baltimore, MD 21201-2395

The name reservation fee is $25, and once approved, the name is reserved for 30 days.

Doing Business As (DBA) in Maryland

You may choose to operate your LLC under a different name than its legal name. This is done by registering a Doing Business As (DBA), which Maryland refers to as a trade name.

DBAs are commonly used when businesses expand into new product lines or brands without forming a separate legal entity. For example, if your LLC is called JJ's Waffles and you later introduce JJ's Muffins, registering a trade name allows you to market the new offering independently while keeping everything under the same LLC.

Another practical benefit of a DBA is banking flexibility. With a registered trade name, you can accept customer payments and open bank accounts under that DBA, making transactions clearer and more professional.

In Maryland, trade names are registered through the Maryland Business Express system. You'll need to log into your account, select the trade name registration option, and submit the required information. The filing fee for a DBA is $25.

2. Select a Resident Agent

Maryland law requires every LLC to appoint a resident agent (also known in other states as a registered agent). The resident agent is responsible for receiving official correspondence on behalf of your LLC, including legal notices, tax documents, and compliance reminders.

Resident Agent Requirements

A resident agent can be an individual or a business entity, as long as they meet Maryland's requirements. The agent must:

• Be at least 18 years old
• Maintain a physical street address in Maryland
• Be available during regular business hours
• If the agent is a business entity, it must be authorized to operate in the state

Some business owners choose to serve as their own resident agent, but this means being consistently available at the listed address during business hours. Many entrepreneurs prefer to hire a professional resident agent service to maintain privacy, ensure timely document handling, and reduce the risk of missing important notices.

3. Determine Your Management Structure

Maryland LLCs can be structured as either member-managed or manager-managed, and this decision affects how authority and responsibilities are distributed within the company.

Member-Managed LLC

In a member-managed LLC, all members are involved in the day-to-day management and decision-making of the business. This structure is common for small LLCs where owners want direct control.

Manager-Managed LLC

In a manager-managed LLC, one or more managers—who may or may not be members—handle daily operations, while other members act as passive investors.

Although a member can serve as a manager, Maryland requires that a manager-managed LLC include at least one manager who is not a member. If your Articles of Organization do not specify otherwise, Maryland will assume your LLC is member-managed by default.

Choosing the right structure early helps prevent internal conflicts and clarifies roles and expectations among owners.

4. File Articles of Organization with the Maryland Department of Assessments and Taxation

To officially form your LLC, you must file Articles of Organization with the Maryland Department of Assessments and Taxation (SDAT). This can be done online or by mail.

Information Required

The Articles of Organization require basic information about your LLC, including:

• Legal name
• Principal office address
• Resident agent details
• Resident office address
• Business purpose

Filing Fee & Processing

• Filing fee: $100
• Online filings are typically processed within seven business days
• Mail filings can take up to six weeks to be approved

SDAT Contact Information

Maryland Department of Assessments and Taxation
301 W. Preston Street, Room 801
Baltimore, MD 21201-2395

Phone: 410-767-1184
Outside Baltimore Metro Area: 1-888-246-5941

5. Draft an Operating Agreement

An Operating Agreement outlines how your LLC is owned and managed and defines the rights and responsibilities of each member. While Maryland does not legally require an operating agreement, having one is strongly recommended—even for single-member LLCs.

A clear operating agreement helps prevent disputes, reinforces liability protection, and provides structure for financial and management decisions. Most operating agreements include details about ownership percentages, voting rights, profit and loss distribution, procedures for adding or removing members, and how disputes will be resolved.

Although templates are available, having an attorney review or draft your operating agreement can provide additional protection and clarity.

6. Get Your Employer Identification Number (EIN)

An EIN is issued by the IRS and is used to identify your LLC for tax purposes. It is required if your LLC has more than one member, hires employees, or elects corporate taxation.

You can apply for an EIN directly through the IRS website at no cost. The application must list a "responsible party," who is the individual controlling the company's finances and operations.

7. Obtain Business Licenses and Permits

Licensing requirements in Maryland depend on your industry and location. While Maryland does not issue a single statewide business license, many businesses need licenses or permits from state agencies or local governments.

Maryland's Licensing OneStop portal allows business owners to identify and apply for required licenses and permits in one place. Depending on your operations, you may need professional licenses, zoning permits, health permits, or fire and safety approvals.

Operating without required licenses can result in fines or penalties, so thorough research and compliance are essential.

8. Determine Your Tax Status

By default, Maryland LLCs are taxed as pass-through entities. This means the LLC itself does not pay federal income tax; instead, profits and losses pass through to the members' personal tax returns.

Default Tax Treatment

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships unless an election is made. LLCs may also elect to be taxed as S-Corporations or C-Corporations if it offers tax advantages.

Maryland LLCs must also file an Annual Report and Personal Property Tax Return, regardless of tax classification.

Annual Reporting in Maryland

Maryland LLCs are required to file an Annual Report and Personal Property Tax Return each year by April 15. The filing fee is $300, and failure to file on time can lead to penalties or forfeiture of good standing.

Maryland LLC FAQs