Every LLC in Maryland must file an annual report each year with the Maryland Department of Assessments and Taxation. Your filing fee may end up costing more, depending on your LLC’s personal property tax return.
Maryland LLC Taxes
What taxes does a Limited Liability Company pay in Maryland? Each LLC has a different tax situation. The State of Maryland requires LLC owners to file an annual personal property return (PPR). You cannot complete this form online. If your LLC has employees, you’ll also need to pay employer taxes. You can visit the State of Maryland’s Comptroller website to learn how you can register your LLC and pay related taxes. Currently, Maryland’s state tax rate ranges from 2-5.75% based on the income you earn from your LLC.
Starting an LLC in Maryland
From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. On this page, you’ll learn about the following:
- What is a Limited Liability Company?
- Steps on How to Start an LLC in Maryland.
- Step 1: Name your LLC in Maryland.
- Step 2: Hire a Resident Agent in Maryland.
Maryland LLC Taxation
By default, a Maryland LLC is taxed by the Internal Revenue Service (IRS) based on the number of Members the LLC has. An LLC with 1 owner (Single-Member LLC) is taxed like a Sole Proprietorship. If an LLC does not elect to be taxed as a corporation or an S-corporation, the LLC will be taxed, by default, as a partnership if it has more than one member. If filing under default status, you must submit your federal taxes using Form 1040 (typically Schedule C, though some SMLLCs file C-EZ, E, or F) for a single-member LLC.
Maryland LLC Annual Report and Franchise Tax
Do I need to file an annual report for my LLC in Maryland? Yes, all Maryland LLCs and corporations must submit an annual report and personal property tax return to the State Department of Assessments and Taxation. The Maryland annual report filing deadline is April 15 each year. It costs annual fees of $300 to file a Maryland annual report to stay in good standing.
- Annual Franchise Tax: All Maryland LLCs are required to pay an annual franchise tax of $300 minimum.
- Annual Report: Every two years, your Maryland LLC must file an annual report with the Maryland Secretary of State, updating the company’s information.
Forming an LLC in Maryland
To form an LLC in Maryland you will need to file the Articles of Organization with the Maryland Department of Assessments and Taxation, which costs $100. You can apply online, by mail, or in-person. The Articles of Organization is the legal document that officially creates your Maryland Limited Liability Company.
Steps to File an Annual Report in Maryland
- Research The Filing Requirements: Understand Maryland’s specific requirements and deadlines.
- File the Annual Report with the Maryland Secretary of State’s office.
An annual report is a routine file that your LLC must make every year in Maryland to update your company information, which includes:
- Business mailing address
- Nature of business activity
- Business personal property status
- Maryland gross sales
How Do I Submit My Annual Report?
- Your Maryland LLC annual report may be filed with the Department of Assessments and Taxation.