Maryland LLC vs North Carolina LLC (2026)
Written for owners based in Maryland.
Verdict: for most owners, form where the business is based
North Carolina is the closest match on this page: $125 to form against $100, and $200 a year against $300, so the annual gap is only $100. Its report costs more each year than the company cost to create, and paying online adds the state's processing charge, $3 by credit card or $2 by ACH. A default-classified LLC owes no North Carolina franchise tax, but electing corporate treatment brings a $200 minimum on top of the report. Maryland registration is $100 either way, with $300 due each April 15.
Based in North Carolina? Read North Carolina LLC vs Maryland LLC →
Compare Maryland LLC vs North Carolina LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Maryland | North Carolina |
|---|---|---|
| Filing Fee | $100 | $125 |
| Processing Time | 6 to 8 weeks | 15 to 20 business days |
| Annual Report Fee | $300 | $200 |
| Annual Report Due | April 15 | April 15 |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $100 + registered agent ~$150/yr |
Full fee breakdown for either state: Maryland LLC cost and North Carolina LLC cost. Owner privacy options for either state: Maryland anonymous LLC guide and North Carolina anonymous LLC guide.
Business Climate: Maryland vs North Carolina
| Factor | Maryland | North Carolina |
|---|---|---|
| 5-year business survival rate | 50.1% (#31 of 51) | 54.2% (#10 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +11.8% YoY (#18 of 51 by volume) | +14.7% YoY (#6 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Maryland vs North Carolina
Maryland
North Carolina
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Maryland charges $100 to form an LLC, while North Carolina charges $125. Maryland is $25 cheaper upfront. The cost that usually gets overlooked: if you form in North Carolina but operate in Maryland, you must also register as a foreign LLC in Maryland (a $100 filing) and maintain a registered agent in North Carolina (typically around $150 per year). That puts the realistic first-year cost of the North Carolina route at roughly $375, versus $100 for simply forming in Maryland. Both states publish a standard turnaround, Maryland (6 to 8 weeks) and North Carolina (15 to 20 business days), though a published figure is a norm, not a guarantee.
Taxes: Maryland vs North Carolina
Both Maryland and North Carolina levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in North Carolina doesn't change what a Maryland-based owner pays. Maryland LLCs owe a $300 minimum annual Personal Property Return fee.
Privacy & Asset Protection
Neither Maryland nor North Carolina offers anonymous LLC formation: both states require owner or manager information on public filings. North Carolina's annual report and foreign application provide manager/member information, public records. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Maryland LLCs file an annual report ($300, due April 15), and North Carolina LLCs file an annual report ($200, due April 15). If you form in North Carolina while operating in Maryland, you maintain filings in both states, North Carolina's report plus Maryland's equivalent for your foreign registration, and pay a North Carolina registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the North Carolina route to roughly $650 a year, versus about $300 to keep a domestic Maryland LLC in good standing. The tax inside those totals: Maryland LLCs owe a $300 minimum annual Personal Property Return fee.
When North Carolina Actually Makes Sense
Forming in North Carolina makes sense in a few specific situations: your business genuinely operates in North Carolina, with a real office, employees, or property there, or you're relocating to North Carolina in the near future. For a typical small business based in Maryland, none of these usually apply. Registering a North Carolina LLC to do business back home means $100 in Maryland foreign-registration fees, on top of North Carolina's $125 formation fee, while Maryland's own annual report runs $300 a year and is due April 15. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.
- dat.maryland.gov/businesses/Pages/default.aspxMaryland State Department of Assessments and Taxation: business entity filings
- dat.maryland.gov/businesses/Documents/FEES.pdfMaryland LLC filing fees
- sosnc.gov/divisions/business_registrationNorth Carolina Secretary of State: business entity filings
- sosnc.gov/fees/by_title/_Business_Registration_limited_liability_companiesNorth Carolina LLC filing fees
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.