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Maryland · MD

Is Maryland a Good State to Form an LLC in 2026?

Is Maryland a good state for an LLC? Honest 2026 analysis of cost, tax, privacy, banking, and the deciding questions.

The short answer

It depends. Maryland has trade-offs: $300 annual personal property return. For most founders, alternatives like Wyoming or your home state are simpler.

Three deciding questions

1. Do you live or operate in Maryland?

If yes, form here. Out-of-state formation while operating in Maryland costs double, not half.

2. What is the 5-year all-in cost?

$3,350 (filing + 5 × annual report + $50 registered agent + franchise minimums). This is the actual number to compare across states.

3. What are your three real requirements?

  • Privacy: 4/10 (weakmembers appear on public filings).
  • Banking: 8/10 (workable but not premium).
  • Cost: high 5-year total.

Maryland pros

  • Strong DC-area banking

Maryland cons

  • $300 annual personal property return

Most common alternative

Wyoming for cost + privacy. Delaware for VC-backed startups. Your home state if you operate there. Run the 5-question quiz for a personalized shortlist.

Interactive cost calculator

LLC Cost Calculator

Estimate the real cost of forming and maintaining an LLC across 51 US jurisdictions. Includes state filing, registered agent, annual report, franchise tax, and (where applicable) publication.

Year 1 breakdown — Maryland

State filing fee $100
Registered agent (yr 1) $50
Annual report fee $300
Franchise / privilege tax (minimum) $300
Year 1 total$750
Recurring (yr 2+)$650/yr
5-year total cost$3,350

Avg. $670 / year — compares to 5-yr baseline $3,350.

What this calculator does NOT include
  • Federal BOI report (free, but mandatory)
  • EIN application (free with SSN/ITIN; some services charge $50-$300)
  • Operating Agreement drafting
  • State-level business licenses (industry-specific)
  • Local city/county fees (varies by municipality)
  • Foreign LLC registration if operating outside formation state
  • Federal and state income tax on profits

Educational estimate only. Not legal or tax advice. Verify with a licensed CPA or attorney before filing.