Last updated December 9, 2021
Maryland LLC Annual Report & Taxes
Quick Start Guide
This Quick Start Guide is a brief overview of how to form an LLC in Maryland.
Detailed Lessons:
1. Name Search
2. Registered Agent
3. Filing Forms
4. Operating Agreement
5. Tax ID Number (EIN)
6. Annual Report & Taxes ← you are here
Maryland LLC Costs:
Maryland state fee: $100 (by mail) or $150 (online)
Annual report: $300
Need to save time?
Hire a professional to form your LLC in Maryland:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
★ Check out Northwest vs LegalZoom
Download or File Online
You can file your Maryland LLC Annual Report and Personal Property Tax Return either online or by mail:
– To file online: visit the Business Express page
– To file by mail: download forms and instructions
Do I need to file both forms?
All Maryland LLCs must file an Annual Report.
Your Maryland LLC must file a Personal Property Tax Return if either of the following are true:
- The LLC owns, uses, or leases personal property located in Maryland
- The LLC has a trader’s license with a local unit of government in Maryland
Filing Fee
$300 is the Annual Report fee.
You may owe more, depending on your LLC’s Personal Property Tax Return.
Due Date
The Annual Report is due by April 15th every year.
Your LLC’s first Annual Report is due the year after your LLC is approved.
For example, if your LLC is approved anytime in 2019, your first Annual Report is due by April 15, 2020. If your LLC is approved anytime in 2020, your first Annual Report is due by April 15, 2021.
Questions
If you have any questions about the Maryland LLC Annual Report and/or Personal Property Tax Return, you can contact the Business Personal Property unit.
Next Step
We recommend hiring an accountant to help you prepare your Personal Property Tax Return. They can also help with your state income taxes and any other taxes that apply to your Maryland LLC.
References
Maryland SDAT: Departmental Forms & Applications
(see “Annual Reports and Personal Property Tax Returns“, about half way down the page)
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
I found this series of lessons very informative.
Thank you Matt!
Awesome! I’m glad it was helpful Rick. Let us know if you need anything else :)
We formed an LLC without knowing all the tax ramifications. We spent over $4k in 2016 researching, testing and creating our products. We made a profit of $256. This will take years to building up to any real money. The $300 Maryland Personal Property Return Report fee isn’t something we can afford. I think we should desolve the llc. What happens when we don’t pay and they desolve the llc. Is there a penalty that will cost more than the $300?
Hi Deb, if you’d like to shut down the LLC, do not let the LLC just “sit”. The Maryland Department of Assessments & Taxation will not administratively dissolve the LLC (like most other states), but instead, your Maryland LLC falls into “forfeiture status” and continues to accrue annual fees, late fees, and penalties. The best course of action is to file the Articles of Cancellation (http://www.dat.maryland.gov/SDAT%20Forms/llc-cancel.PDF) and pay the $100 cancellation fee. This will cancel and shut down your LLC. You can only file this by mail (online filing is not available). Once you mail in your Articles of Cancellation and the $100 cancellation fee, the state will process your cancellation and mail you back a confirmation within 4-6 weeks. Alternatively, if needed, you can expedite the cancellation for an additional $50 ($150 total) and the cancellation will be processed and confirmation returned to you within 7-10 business days. Hope this is helpful. Let us know if you have any followup questions.
Well done! You are helping people gain more knowledge to be confident to start their own business, Thank you!
Thank you Nica! And you’re very welcome :)