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Maryland vs Texas LLC Cost (2026): $400 vs $300

Side-by-side LLC formation cost comparison for Maryland and Texas: filing fees, annual report costs, processing time, and tax implications.

No signup No tracking Last updated March 2026

Forming an LLC in Texas costs $300 in year one — $100 cheaper than Maryland ($400).

Maryland

State filing fee $100
Annual report fee $300 per year
Processing time 5–7 days
State income tax Yes
First-year total $400

Texas

Lower Cost
State filing fee $300
Annual report fee None required
Processing time 1–3 days
State income tax None
First-year total $300

Full LLC Cost Comparison: Maryland vs Texas

Factor Maryland Texas
State filing fee (one-time) $100 $300
Annual report fee $300 / per year None
Processing time 5–7 business days 1–3 business days
State income tax Yes No income tax
First-year total $400 $300

Texas saves you $100 in year one compared to Maryland.

Maryland LLC Notes

Maryland's annual report fee is among the highest in the country.

Texas LLC Notes

Texas has no personal income tax. LLCs file an annual franchise tax report if revenue exceeds $2.47M.

Which State Should You Actually Use?

For most small businesses, form your LLC where you actually do business — not where the filing fee is cheapest. If you operate in Maryland, form there. If you operate in Texas, form there.

  • Forming in your home state: Simpler compliance, no registered agent needed in another state, no foreign qualification fees.
  • Forming in Wyoming or Delaware: Makes sense for investor-backed startups, multi-member LLCs with complex ownership structures, or businesses operating in multiple states.
  • Key cost trap: If you form in Maryland but operate in Texas, you'll pay both states' fees — eliminating any savings.
Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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