File your out-of-state LLC with SDAT in Maryland

Maryland's registration statute covers more than local business. It lists interstate, intrastate and foreign business together and puts the duty ahead of all three. An LLC whose Maryland activity is selling across state lines therefore still has to check the rule. The law then sets aside a short group of safe activities, and the explainer on when registration is required sets that list beside real cases.

The statute sets out 8 items. In order, they are the LLC's name and any other name it will go by in Maryland, where and when it was formed, the general character of its Maryland business, its resident agent, a statement that SDAT steps in when no agent can be reached, the address of its home office, proof of good standing at home, and a note if it is a series company. The LLC registration page explains each in plain terms.

SDAT's schedule prints three options beside a foreign LLC registration. Regular processing adds $0 and is reviewed in the second calendar month after submission. Expedited adds $50 and its review begins no earlier than business day 7. Online rush adds $325 and is reviewed within 3 hours if sent in ahead of 2:30 pm on a business day. Online payment also carries a 3 percent technology fee, which SDAT says goes to the state's eGovernment provider and is not refundable. A rush filing submitted when the Department is closed is reviewed by 12:00 pm the next business day. On paper, the two-hour service costs $425 in all, and a rush request received by 10:30 am is reviewed the same day. SDAT emails an acknowledgment within 24 hours of approval.

Each spring the registered LLC files Form 1, SDAT's combined annual report and personal property return, and pays $300. It is due April 15. The property return carries no fee of its own. An LLC that owns, leases or uses enough Maryland personal property completes the property part, and every entity that existed on January 1 files Form 1 whether or not it owns anything. See the annual report page.

Ownership alone can be enough. Under the statute's second subsection, an LLC holding income-producing real estate, or income-producing equipment and similar tangible property, in Maryland counts as doing business even without an office, staff or customers here. Rental property in Baltimore County owned through an out-of-state LLC is covered.

We prepare the registration, check the home-state proof, enter the agent you name, submit the filing and pass along SDAT's acknowledgment. Whether your facts require registration and how Maryland taxes the LLC are questions for a Maryland attorney or accountant.

Maryland separates foreign corporations into two kinds of authority. A corporation that will do interstate or foreign business registers, and one that will do intrastate business qualifies, and the fee for either is $100. A foreign limited partnership or LLP registers for $100. The corporation page has the rest.

Four answers speed an order. Who will be the Maryland resident agent? Does the LLC's name need to change for Maryland? Which review speed fits your deadline? And has Maryland work already started, so the registration comes after the fact? With those four, we prepare the filing.