Small Business & Entity Tax • Maryland (MD)

Maryland LLC vs. S-Corp Tax Savings & Filing Fee Calculator (2026)

Calculate exact 15.3% self-employment tax savings with an IRS Form 2553 S-Corporation election in Maryland, factoring in the $100 MD Articles of Organization fee and $300/yr report cost.

Maryland LLC vs. S-Corp Tax Inputs
Gross revenue minus ordinary deductible business expenses.
Maryland initial LLC filing fee: $100 | State income tax benchmark: 5%.
Estimated Annual Net Tax Savings (S-Corp)
$0 / yr
After payroll & MD compliance costs
  • Standard Disregarded LLC SE Tax (15.3%): $0
  • S-Corp W-2 Reasonable Salary: $0
  • S-Corp Shareholder Distribution (0% SE Tax): $0
  • S-Corp Payroll Tax (15.3% on Salary Only): $0
  • Maryland Initial Filing / Annual Fee: $100 / $300/yr
  • Est. Maryland State Income Tax (5%): $0
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Maryland (MD) Regional Benchmarks & Statutory Notes

Maryland Benchmark Metric 2026 Value Regional Context (South)
Skilled Trade Labor Cost Multiplier 1.12x National Avg Avg contractor billing rate: ~$95/hr
4,000 PSI Ready-Mix Concrete Benchmark $176 / cubic yard Local frost footing depth: 30 inches
Maryland LLC Filing & Annual Report Fee $100 initial / $300/yr Top state income tax benchmark: 5%
Residential Security Deposit Statutory Cap & Deadline 1x Rent / 45 Days Maryland statutory cap limits residential security deposits to 1 month's rent with simple interest rules.

Frequently Asked Questions: Maryland LLC vs. S-Corp Tax & Filing Fee Calculator

How much does it cost to start and maintain an LLC in Maryland?

In Maryland (MD), the initial Articles of Organization state filing fee is $100, and the ongoing annual report / franchise compliance fee is $300 per year. The benchmark top state income tax rate is 5%.

At what profit level does an S-Corp make sense in Maryland?

Generally, once your net business profit exceeds $65,000–$80,000 per year in Maryland, the 15.3% Medicare and Social Security tax savings on shareholder distributions outweigh the ~$600/yr payroll software cost and $300 annual state fee.

What is considered a reasonable S-Corp salary?

The IRS requires S-Corp owner-employees to pay themselves W-2 wages commensurate with market rates for the services performed (commonly 40%–55% of net profit for solo service businesses, depending on role and hours).

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