How much does it cost to incorporate in Maryland?

At least $120 to file the Articles of Incorporation (stock corporation), filed with SDAT — $100 filing fee plus a $20 organization & capitalization fee (aggregate par value of stock not over $100,000) — that is a floor rather than a flat price; the amount published by the state scales with what you file. Adding the first report brings the first-year state filing charges to $420.

Is Maryland an expensive state to incorporate in?

On the filing fee alone, Maryland is the 33rd cheapest of 49 states to incorporate in. Filing fees across the states run from $35 in Montana to $300 in Texas — a one-off charge that is usually dwarfed by the recurring report fee and any annual franchise or minimum tax, which is where the real long-run difference between states sits.

Is it cheaper to form an LLC or a corporation in Maryland?

An LLC is cheaper to file in Maryland — $100 against $120 for a corporation, a $20 difference on a one-off charge.

Does Maryland tax corporate income?

8.25% flat (Md. Tax-General §10-105(b)).

Incorporation · MD

How to Form a Corporation in Maryland

By Edmond Hui · Facts verified July 29, 2026 against primary state sources

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

Incorporating in Maryland costs from $120 to file the Articles of Incorporation (stock corporation), filed with SDAT — $100 filing fee plus a $20 organization & capitalization fee (aggregate par value of stock not over $100,000). After that the corporation files every year and pays $300. First-year state filing charges come to $420.

Filing feefrom $120

Report cadenceEvery year

First-year filings$420

Corporate income taxYes

What you file in Maryland

Incorporation filing

Document	Articles of Incorporation (stock corporation), filed with SDAT — $100 filing fee plus a $20 organization & capitalization fee (aggregate par value of stock not over $100,000)
Fee	from $120
Recurring report	Annual Report (SDAT Form 1), filed with the Maryland Department of Assessments and Taxation (with the Business Personal Property Return where applicable) — every year, $300
First report due	April 15 each year

This page covers the state filing and the charges that follow it. For the procedural side — name availability, registered agent, bylaws and the federal EIN — see the formation guide and how to get an EIN, both of which apply to corporations as well as LLCs.

What it costs to incorporate and stay filed

State filing charges only. Corporate income tax and franchise tax are excluded — both depend on income or net worth, so no flat figure would be true for every corporation.

Charge	Amount	How often
Articles of Incorporation (stock corporation), filed with SDAT — $100 filing fee plus a $20 organization & capitalization fee (aggregate par value of stock not over $100,000)	from $120	One time
Annual Report (SDAT Form 1), filed with the Maryland Department of Assessments and Taxation (with the Business Personal Property Return where applicable)	$300	Every year
First-year state filing charges	$420	—
Five-year state filing charges	$1,620	—

Maryland is the 33rd cheapest of 49 states on the incorporation filing fee alone. Nationally the fee runs from $35 in Montana to $300 in Texas, averaging $113.06. It is a one-off charge, so over five years it is usually outweighed by the recurring report fee and any annual franchise or minimum tax.

States that are cheaper to incorporate in

State	Filing fee	Difference
Montana	$35	$85
Kentucky	$40	$80
Arkansas	$50	$70
Colorado	$50	$70
Hawaii	$50	$70

A cheaper filing fee elsewhere rarely saves money if you actually operate in Maryland. Every state sets its own threshold for what counts as transacting business, and where that threshold is met an out-of-state corporation is generally required to register as a foreign corporation — which would mean fees in both states rather than one. Whether it applies to you depends on facts this page cannot see, so check foreign qualification in Maryland before incorporating elsewhere to save on the filing fee.

Maryland corporation vs Maryland LLC

State filing charges only. Corporate income tax and franchise tax are excluded because both depend on income or net worth, so no flat figure exists for either entity.

	Corporation	LLC
Formation filing fee	$120	$100
Report cadence	Every year	Every year
Report fee	$300	$300

An LLC is $20 cheaper to file here. That is a one-off charge, so it should not decide the entity type on its own.

Full Maryland LLC cost breakdown · LLC vs C-corp explained · LLC vs S-corp explained

State taxes a Maryland corporation pays

Corporate income tax

Applies	Yes
Rate	8.25% flat (Md. Tax-General §10-105(b))

Franchise or gross-receipts tax

Maryland has NO general corporate franchise tax. The $300 annual charge is the SDAT Annual Report filing fee (the same $300 applies to LLCs), not a franchise tax and not based on capital or paid-in stock. Maryland levies a separate public service company franchise tax only on regulated utilities.

What these totals leave out: the filing-charge figures on this page are what you pay the business filing office. They exclude corporate income tax and any franchise or gross-receipts tax, because both depend on income, net worth or receipts. The section above sets out what Marylandlevies — or that it levies neither. Where a state's franchise tax carries a flat minimum, that minimum is an unavoidable annual cost these totals do not include, and over five years it can be the larger number.

C-corp return: Form 500 (Maryland Corporation Income Tax Return)

Electing S-corporation status in Maryland

Maryland follows the federal S election. Full Maryland S-corporation election guide.

Frequently Asked Questions

: At least $120 to file the Articles of Incorporation (stock corporation), filed with SDAT — $100 filing fee plus a $20 organization & capitalization fee (aggregate par value of stock not over $100,000) — that is a floor rather than a flat price; the amount published by the state scales with what you file. Adding the first report brings the first-year state filing charges to $420.
: On the filing fee alone, Maryland is the 33rd cheapest of 49 states to incorporate in. Filing fees across the states run from $35 in Montana to $300 in Texas — a one-off charge that is usually dwarfed by the recurring report fee and any annual franchise or minimum tax, which is where the real long-run difference between states sits.
: An LLC is cheaper to file in Maryland — $100 against $120 for a corporation, a $20 difference on a one-off charge.
: 8.25% flat (Md. Tax-General §10-105(b)).

Where these numbers come from

This page covers the state filing required to incorporate in Maryland and the charges that follow it. Every figure was checked against Maryland's own published sources on July 29, 2026— the state business filing agency's fee schedule, the governing statute, and where a state tax applies, the state Department of Revenue. Commercial formation-service pages were used as leads only and are never cited. Anything the review could not confirm from an official source is left blank on this page rather than filled with an estimate.

Corporate income tax and franchise tax are quoted as the state publishes them, as rate schedules and thresholds, and are excluded from every dollar total here. They depend on income or net worth, so there is no flat figure that would be true for every corporation.

Primary sources: