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How to start a business in Maryland

The fees, filing links and deadlines for forming and registering a business in Maryland, with the official page for each step.

Last verified October 24, 2026 General information, not legal, tax or insurance advice. Each fee shows the date we checked it on the official page. Fees change, so confirm on the official page before you pay.

LLC filing fee: $100
LLC, first year (state fees): $103
$300 annual report due by April 15 next year
Corporation filing fee: $120
Annual report: $300
DBA filed with: State
General state license: No
Newspaper notice: No

How much does it cost to form an LLC or corporation in Maryland?

To form an LLC, file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT), Charter Division for $100 (checked Oct 24, 2026). You can file online. A corporation files Articles of Incorporation (stock corporation) for $120 (checked Oct 24, 2026). That filing fee is not the whole bill: see what it costs in the first year.

What does an LLC really cost in its first year in Maryland?

Filing fees are only part of the cost. Here is every state fee and minimum tax we found that a new LLC must pay to form and stay in good standing for its first year. Example: Single-member LLC filed online at standard speed, operating from day one with no employees; licenses every business must hold are counted, sales tax permits are listed separately.

State fee	Cost	When	Checked
Articles of Organization filing fee (standard)	$100	at filing	Oct 24, 2026
Maryland Business Express 3% service/convenience fee on the filing payment	$3	at filing, when paid through Business Express	Oct 24, 2026

First-year total: $103 in state fees.
$300 annual report due by April 15 next year Formation $100 at standard speed, plus the 3% Maryland Business Express convenience fee on that payment ($3). The first $300 annual report, due April 15 of the following year (paying it online through Business Express adds 3%, or $9), is shown below the total, not counted in it. Excludes the trader's license (only for sellers of goods), sales tax registration, trade names, city and county licenses, registered agent services and optional expedite or rush fees.

After the first year: The $300 Form 1 annual report is due every April 15 (free 60-day extension on request). A trader's license, if you need one, renews each May 1, and a trade name renews every five years for $25.

Fees that apply only in some cases

State fee	Cost	When	Checked
Trader's license (Clerk of the Circuit Court) If you sell or offer goods for sale and are not the grower, maker or manufacturer; one per location; $15 for stock worth $1,000 or less ($20 in Baltimore City and Baltimore County), more for larger stock, or the county's uniform fee	$15	before selling; renews each May 1	Oct 24, 2026
Sales and use tax license (Combined Registration Application) If you make taxable sales in Maryland	Note Confirm this on the official page before you rely on it.	before making sales	Check when you file
Trade name registration If you do business under a name other than the LLC's legal name; lasts five years	$25	before using the name	Oct 24, 2026
Unemployment insurance and FAMLI employer registration If you hire employees in Maryland; FAMLI contributions (0.9% total for 2027, employers with fewer than 15 employees pay only the employee half) start January 1, 2027	$0	when you hire	Oct 24, 2026

Not included: city or county licenses, a registered agent service if you hire one, and optional extras such as expedited filing. Fees can change after the date shown; confirm on the official page before you pay.

Do I need to register a DBA in Maryland?

If you do business under a name that isn’t your legal name, register it as an assumed name (DBA) with the state for $25 (checked Oct 24, 2026).

How to file a DBA

Does Maryland require an annual report?

Yes. The fee is $300 (checked Oct 24, 2026) Fee confirmed on the 2026 Form 1; SDAT has not yet published the 2027 form.. By April 15 each year for every LLC and corporation that exists on January 1 (so the first one is due April 15 of the year after formation). A free 60-day extension can be requested online by April 15. The 2026 report was due April 15, 2026 (June 15, 2026 with an extension).

Does Maryland have a franchise or privilege tax?

None for most businesses; SDAT's franchise tax applies to public service companies such as gas, electric and telephone utilities (2% of Maryland gross receipts, plus per-unit charges for electricity and gas delivered).

How do I register for state taxes in Maryland?

Register with the state revenue agency for sales tax and withholding, and open an unemployment insurance account once you hire your first employee.

Does Maryland require a general business license?

No. Maryland doesn’t issue one general business license; what you need depends on your activity and where you operate.

Maryland has no single general business license. Anyone who sells or offers goods for sale (other than growers, makers and manufacturers, and a few other exceptions) needs a state trader's license from the Clerk of the Circuit Court in the county or Baltimore City where the store is, one per location. The fee depends on the value of stock in trade, starting at $15 ($20 in Baltimore City and Baltimore County) for stock worth $1,000 or less, unless the county has chosen a uniform fee. The license year runs May 1 to April 30, and late applications carry a penalty of 10% for the first month plus 2% for each added month. Maryland Business Express says almost all businesses need a basic business license, but no state law we found creates one; the licenses it describes are the trader's license, specific occupational licenses and local licenses. State occupational licenses are applied for through the Maryland OneStop portal. Sales and use tax, withholding and other business tax accounts are opened through the Combined Registration Application in Maryland Tax Connect. Employers with one or more Maryland employees must also register for unemployment insurance (BEACON) and for Family and Medical Leave Insurance (FAMLI); FAMLI payroll contributions begin January 1, 2027 at a total rate of 0.9%, and employers with fewer than 15 employees pay only the employee half.

What local licenses will I need in Maryland?

Cities and counties set their own licenses, zoning and permits. Call your city or county clerk with your business type and address before you open.

Baltimore (city)
Baltimore City business licenses are now issued by the Department of Consumer Protection and Business Licensing (moved from the Department of Finance). They cover listed business types only, such as auctions, pawnbrokers, secondhand dealers, motor fuel sales, late-night commercial operations, commercial parking, street vendors and transient merchants. Applicants need an SDAT number in good standing and the right trader's license, then apply online, by email, by mail or in person and pay through pay.baltimorecity.gov. No fees are listed on the city's pages.

When do I need workers’ comp in Maryland?

1 or more employees.

With few exceptions, every Maryland employer with one or more employees must carry coverage from an insurer licensed in Maryland (including Chesapeake Employers' Insurance Company) or approved self-insurance. Only true employees are covered; independent contractors are not. A sole proprietor is not covered unless they elect coverage, and businesses without employees may elect it. Paid corporate officers and LLC members count as covered employees, but some may elect to be exempt in writing, including officers of close corporations, up to five officers of other corporations, and LLC members who own at least 20% of the profits interest. Corporate officers with general management duties can be personally fined up to $10,000 if the company fails to carry required coverage.

What else should I know about starting a business in Maryland?

LLC Articles of Organization cost $100 at standard speed (6 to 8 weeks) or $150 expedited (about 7 to 14 business days); same-day service costs more. Filing is online through Maryland Business Express or by mail, drop box or appointment. Payments through Business Express carry a 3% service/convenience fee. SDAT's fee schedule says Business Express filings can be made as rush, expedited or non-expedited, so the $50 expedite fee is optional online too. The $120 stock corporation fee is $100 plus a $20 organization and capitalization fee; call SDAT for the fee if aggregate par value tops $100,000 or no-par stock exceeds 5,000 shares. LLCs and stock corporations file a Form 1 annual report ($300) by April 15 each year if they existed on January 1; it doubles as the business personal property return, which also requires a property listing if Maryland business property costs $20,000 or more. Employers approved by MarylandSaves can get the annual report fee waived. Trade names are registered with SDAT for $25 and last five years, renewable in the last six months; sole proprietors and general partnerships file a no-fee Form 2 annual report.

What to double-check for Maryland?

A few details below aren't spelled out on the state's own pages. Confirm them on the official page before you file.

Note The $300 annual report fee is confirmed on SDAT's 2026 Form 1; the 2027 form, which a 2026 LLC's first report uses, is not yet published. https://dat.maryland.gov/SDAT%20Forms/PPR_Forms/2026_Form1.pdf
Note Maryland Business Express says almost all businesses need a basic business license, but no state law or Comptroller page we found creates a general license; the state's trader's license applies only to sellers of goods. Check with your county's Clerk of the Circuit Court. https://www.marylandcomptroller.gov/businesses/new-business/circuit-court-clerks.html
Note Confirm this on the official page before you rely on it.
Note Confirm this on the official page before you rely on it.
Note SDAT's franchise tax page describes the tax only for public service companies (utilities); no official page says outright that ordinary LLCs and corporations owe none.
Note Confirm this on the official page before you rely on it.

What to do next

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Sources

Official pages checked on October 24, 2026.