Forming a Limited Liability Company in Maryland

To form a Maryland limited liability company, the person wishing to form the new entity must file a document called Articles of Organization with the Maryland Department of Assessments and Taxation. These Articles of Organization must contain information required by the Maryland Limited Liability Company Act, including:
• the name of the LLC;
• the purpose for which the company is being formed;
• the address of the LLC’s principal office located in Maryland; and
• the name and address of the LLC’s resident agent.

The state charges a filing fee for submission of Articles of Organization. The amount of this fee, and the government’s processing time, will vary depending on the method chosen for submission. Articles of Organization can be filed online, by mail, or in person. For those seeking the quickest processing time, Maryland offers expedited service for an additional fee. The LLC entity will only be officially formed once its Articles of Organization have been filed with, and accepted by, the Department of Assessments and Taxation.

While the filing and acceptance of Articles of Organization creates a new LLC entity, an important additional step may be the creation and approval of a written Operating Agreement for the company. Maryland law does not mandate that a Maryland LLC have a written Operating Agreement, but a written Operating Agreement is strongly recommended if there is to be more than one member/owner of the company (and also in some circumstances when there will be only a single member/owner). An Operating Agreement sets forth in detail the members’ rights and responsibilities, as well as the company’s operating rules and procedures. Although the Articles of Organization and the Operating Agreement are both considered to be governing documents for the LLC, only the Articles of Organization are filed with the state and become part of the public record. An Operating Agreement remains in the company’s business records without public filing.

Consider consulting with a business attorney to assist you with setting up your LLC, or in preparing of a written Operating Agreement.