StructureCost2026

Maryland: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,420 a year less than a sole proprietorship in Maryland. All figures are 2026 tax and fees.

$4,420 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Maryland, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Maryland, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $26,413 $0
Itemized: $26,413
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxmarylandcomptroller.gov, checked Oct 23, 2026$4,048
Yearly cost$26,413
Single-member LLC $26,608 +$195 $100
Itemized: $26,608
Annual Report and Business Personal Property Return (Form 1)dat.maryland.gov, checked Oct 23, 2026$300
Self-employment taxirs.gov, 2026 rates$14,087
Federal income taxirs.gov, 2026 rates$8,186
State income taxmarylandcomptroller.gov, checked Oct 23, 2026$4,035
Yearly cost$26,608
LLC taxed as an S corp lowest $21,993 −$4,420 $100
Itemized: $21,993
Annual Report and Business Personal Property Return (Form 1)dat.maryland.gov, checked Oct 23, 2026$300
Payroll tax on your salaryirs.gov, 2026 rates$6,383
Payroll service and tax return (estimate)$1,800
Maryland pass-through entity tax, paid by the company (elected)marylandcomptroller.gov, checked Oct 23, 2026$4,775
Federal income taxirs.gov, 2026 rates$8,735
Yearly cost$21,993
S corporation $21,993 −$4,420 $120
Itemized: $21,993
Annual Report and Business Personal Property Return (Form 1)dat.maryland.gov, checked Oct 23, 2026$300
Payroll tax on your salaryirs.gov, 2026 rates$6,383
Payroll service and tax return (estimate)$1,800
Maryland pass-through entity tax, paid by the company (elected)marylandcomptroller.gov, checked Oct 23, 2026$4,775
Federal income taxirs.gov, 2026 rates$8,735
Yearly cost$21,993
C corporation $31,752 +$5,339 $120
Itemized: $31,752
Annual Report and Business Personal Property Return (Form 1)dat.maryland.gov, checked Oct 23, 2026$300
Payroll tax on your salaryirs.gov, 2026 rates$6,383
Payroll service and tax return (estimate)$2,000
State corporate income taxmarylandcomptroller.gov, checked Oct 23, 2026$4,486
Federal corporate income tax (21%)irs.gov, 2026 rates$10,477
Federal income taxirs.gov, 2026 rates$4,700
State income taxmarylandcomptroller.gov, checked Oct 23, 2026$3,406
Yearly cost$31,752
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Maryland

Electing S corp tax treatment for an LLC starts to pay in Maryland at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Maryland can elect to pay the state's income tax itself, a pass-through entity tax of 8.75%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totalmarylandcomptroller.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$6,139$6,361$7,816$8,294
$50,000$11,573$11,791$11,504$14,319
$75,000$18,440$18,658$15,437$22,060
$100,000$26,413$26,608$21,993$31,752
$150,000$43,964$44,159$36,517$53,106
$200,000$62,301$62,512$51,833$73,793
$300,000$106,492$106,584$84,519$116,636

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Maryland

LLCCorporation
Filing to form$100Articles of Organization$120Articles of Incorporation (stock corporation)dat.maryland.gov
Yearly reportAnnual Report and Business Personal Property Return (Form 1), $300 a yearAnnual Report and Business Personal Property Return (Form 1), $300 a yeardat.maryland.gov
Report dueApril 15 (online extension to June 15)April 15 (online extension to June 15)

Not in the calculator: All 23 counties and Baltimore City levy a local income tax of 2.25% to 3.30% on residents (Anne Arundel and Frederick are progressive), which roughly adds 3% to the state rate. Counties also tax business personal property.

Switching calculators for Maryland

By profession in Maryland

Questions

Is an S corp worth it in Maryland?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $21,993 a year against $26,608 for a plain LLC, $4,615 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Maryland?

The state charges Annual Report and Business Personal Property Return (Form 1), $300 a year. Forming one costs $100.

Does Maryland recognise the S corp election?

Yes. The federal election carries over with no separate state form. Maryland follows the federal S election. S corps file Form 510 (or elect Form 511 PTE tax) and pay nonresident member tax on shares of nonresident owners.

What income tax does Maryland charge?

Maryland taxes personal income in 10 brackets, from 2% to 6.5% (2026, single filer). C corporations pay 8.25% of net income.

How this page models Maryland (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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