Maryland works best for founders who have an actual reason to be tied to the state, such as a physical office, local customers, or a license that requires a Maryland address. This guide breaks down what a Maryland LLC costs in year one and every year after, what the registered agent and annual report rules look like, and when Wyoming or Delaware would serve you better instead.
Who Maryland Fits
Maryland suits founders who already have a connection to the state. That could mean you live there, you plan to hire staff there, you sell to Maryland-based customers under a contract that names the state, or your business needs a Maryland-specific license or permit. If none of that applies to you, Maryland is not a bad choice, but it is not usually the cheapest or fastest one either. Founders with no physical or operational tie to any specific state often do better with a formation state chosen for cost and speed rather than location.
Year One Cost by Plan
Maryland's LLC filing fee is $100. A corporation filing costs $120 instead. On top of the state fee, you pay for whichever PowerLaunch plan fits your needs.
| Plan | Plan price | Maryland filing fee | Year one total |
|---|---|---|---|
| Launch | $295 | $100 | $395 |
| Run | $1,995 | $100 | $2,095 |
| Scale | $2,995/yr or $329/mo | $100 | $3,095/yr (plus $100 upfront if paying monthly) |
If you need your EIN faster than the standard timeline, the expedited EIN add-on costs an extra $295 on the Launch or Run plan, and expedited EIN processing is already built into Scale.
Formation itself typically takes one to two weeks in Maryland, since it is not one of the one to three business day states. Your EIN, if you do not have a US Social Security number, usually takes two to four weeks without expediting, or a matter of days with it. Bank introductions to partners like Mercury, Wise Business, or Relay happen after your EIN is issued, and approval is always the bank's own decision, not PowerLaunch's.
Ongoing Yearly Cost
Maryland requires an annual filing to stay in good standing, with a minimum yearly cost of $300 for the report or franchise minimum. That amount is separate from your PowerLaunch plan renewal.
| Plan renewal | Maryland annual cost | Total ongoing yearly cost |
|---|---|---|
| Launch, $295 | $300 | $595 |
| Run, $1,995 | $300 | $2,295 |
| Scale, $2,995/yr | $300 | $3,295 |
Run and Scale include the annual state report filing as part of the plan, so you are not left to track the deadline yourself. Maryland's exact fee structure can shift, so check the state's site before you file if you want the current figure confirmed.
Registered Agent and Annual Report
Every Maryland LLC needs a registered agent with a physical address inside the state, available during business hours to receive legal and state mail. You cannot use a PO box, and if you are not based in Maryland yourself, you need a third party to fill this role. All PowerLaunch plans, starting with Launch, include registered agent service, so this is handled from day one.
Maryland also requires an annual report, sometimes paired with a personal property return depending on what your business does. Missing this filing can put your LLC out of good standing, which can complicate banking, contracts, or a later sale of the business. On the Run and Scale plans, PowerLaunch files this for you each year as part of the service.
State Income Tax, in General Terms
An LLC is a pass-through entity by default, so the company itself usually does not pay federal income tax directly, and the same logic often extends to state level. Whether you owe Maryland state income tax depends on whether your business has income sourced to Maryland, such as revenue tied to Maryland customers, property, or employees. A founder with no physical presence, no employees, and no Maryland-source revenue often owes little or nothing to the state itself, but this varies
