Maryland LLC owners

    Maryland LLC taxes: what to file and when

    A Maryland LLC usually deals with two state agencies. The Comptroller handles income, sales and withholding taxes. SDAT handles the annual report and personal property return. Here is what each one expects.

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    • Last reviewed October 10, 2026
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    What taxes and filings does a Maryland LLC have?

    A multi-member Maryland LLC files Form 510 by April 15 for a calendar year, and members report their share on Form 502 or 505. A single-member LLC reports on the owner's return. Every LLC files the SDAT annual report by April 15 with a $300 fee. Your Virtual CPA, a licensed CPA firm, prepares Maryland LLC filings. Request a free consultation.

    Start with how the IRS classifies your LLC

    Maryland follows the federal classification:

    • Single-member LLC: disregarded by default. The income goes on the owner's return. The Maryland Form 510 instructions say Maryland follows the IRS rules for a disregarded single-member LLC, and the income is included on the member's Maryland return.
    • Multi-member LLC: a partnership by default. It files federal Form 1065 and Maryland Form 510.
    • LLC that elects S corporation status (Form 2553): files federal Form 1120-S and still files Maryland Form 510 as a pass-through entity.
    • LLC that elects C corporation status (Form 8832): files as a corporation, on Maryland Form 500.

    Form 510, the PTE tax election and owners' returns

    Form 510 is the Maryland pass-through entity income tax return. Every Maryland pass-through entity must file it, even if it had no income or was inactive. It is due by the 15th day of the 4th month after the tax year ends. A filed Form 510/511E gives an automatic extension, up to six months for partnerships and LLCs and up to seven months for S corporations, if any tax due is paid.

    If the LLC has nonresident members, it pays Maryland nonresident tax on their behalf with Form 510.

    An LLC can instead elect to pay Maryland tax at the entity level for all members and file Form 511. Members then claim a credit for their share on their own Maryland returns. See Maryland pass-through entity tax.

    Owners' returns. Maryland residents report their share on Form 502, due April 15, along with the county or Baltimore City income tax for where they live on the last day of the year. Nonresident members file Form 505 for their Maryland-source share.

    SDAT annual report, sales tax and other registrations

    SDAT annual report and personal property return (Form 1). Every domestic and foreign LLC files by April 15. The filing fee for an LLC is $300, and SDAT says it is owed whether or not the business owns property or does business in Maryland. Property is reported as of January 1. You can request a two-month extension online. Missing the report can lead to forfeiture of the LLC's right to do business in Maryland. Businesses that qualify with MarylandSaves may have the fee waived.

    Sales and use tax. If the LLC sells taxable goods or services in Maryland, it needs a sales and use tax license through the Comptroller's Combined Registration Application. The same online application can open an income tax withholding account if the LLC has employees.

    Single-member vs. multi-member. Both file the SDAT report. Only the multi-member LLC (or an LLC that elected S status) files Form 510. The single-member owner reports the business on their own federal and Maryland returns.

    How it works with us

    Best for: Maryland LLC and PLLC owners, multi-member and family LLCs, and LLCs with members who live outside Maryland.

    1. Free initial consultation. We confirm how your LLC is classified and which filings apply.
    2. Fees quoted upfront, in writing. Our fees are transparent and fair, and you see them before work starts.
    3. We prepare the federal return (1065 or 1120-S) and Maryland Form 510 or 511, with member K-1s.
    4. We review whether the PTE election or an S corporation election makes sense for the owners.
    5. We track SDAT, sales tax and estimated payment dates so nothing lapses.

    What to send us: last year's federal and Maryland returns, your SDAT department ID, year-end financial statements and each member's state of residence.

    Maryland LLC filings at a glance

    FilingWho filesDue date (calendar year)Agency
    Form 1065 (partnership) or 1120-S (S corp)Multi-member LLC, or LLC that elected S status15th day of the 3rd month (March 15)IRS
    Form 510 (pass-through entity return)Multi-member LLC or S corp LLC, even if inactive15th day of the 4th month (April 15)Comptroller of Maryland
    Form 511 (electing PTE return)LLC that elects to pay Maryland tax at the entity level15th day of the 4th month (April 15)Comptroller of Maryland
    Form 502 (resident) or 505 (nonresident)Each individual owner, including single-member ownersApril 15Comptroller of Maryland
    Form 1 annual report and personal property return ($300 fee)Every domestic and foreign LLCApril 15 (two-month extension available online)SDAT
    Sales and use tax returnsLLCs that sell taxable goods or services in MarylandSet by the Comptroller when you registerComptroller of Maryland

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    Own a Maryland LLC? We'll sort out which returns and SDAT filings apply, prepare them, and keep your LLC in good standing.

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    Frequently asked questions

    Not a separate income tax return, if the LLC is disregarded for federal tax purposes. Maryland follows the IRS treatment, so the income goes on the owner's Maryland return (Form 502 for residents). The LLC still must file the SDAT annual report and personal property return by April 15 and pay the $300 fee.

    Maryland Form 510, the pass-through entity income tax return, due by the 15th day of the 4th month after the tax year ends (April 15 for a calendar year). Every Maryland pass-through entity must file, even if it had no income or was inactive. Each member then reports their share on their own return.

    The SDAT annual report filing fee for a domestic or foreign LLC is $300, due with the Form 1 annual report and personal property return by April 15. SDAT says the fee is owed whether or not the business owns property or earns income in Maryland. Businesses that qualify with MarylandSaves may have the fee waived.

    SDAT says failure to file results in forfeiture of the Maryland charter or the right to do business in Maryland. It can also issue estimated personal property assessments. You can request a two-month extension online by April 15.

    Yes. An eligible LLC can elect S corporation status with IRS Form 2553, generally no more than 2 months and 15 days after the start of the tax year the election is to take effect. For Maryland, an S corporation is still a pass-through entity that files Form 510 (or Form 511 if it elects the PTE tax).

    Yes, if the owner is a Maryland resident. Resident owners pay state and local income tax on their Form 502, and the local rate depends on the county or Baltimore City where they live on the last day of the tax year. The LLC itself does not pay the county income tax.

    Yes, if it sells tangible personal property or taxable services in Maryland. Register through the Comptroller's Combined Registration Application before you start collecting tax. The same application can open a Maryland withholding account if the LLC will have employees.
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