How to Syndicate an Apartment Deal in Maryland

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What is the Maryland Rule 506 notice filing?
How do you form the deal LLC in Maryland?
Does Maryland have rent limits?
What Maryland landlord and tenant rules should a sponsor know?
What does Maryland charge when an apartment building sells?
How does Maryland property tax work for an apartment building?
Does Maryland tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in Maryland, you form the deal LLC (or register an outside LLC with the State Department of Assessments and Taxation, SDAT), raise under Rule 506(b) or 506(c), and file a Form D notice with a $100 fee through NASAA's EFD within 15 days of your first Maryland sale; after 15 days DoorRaise's state data lists a $150 late fee. In the Washington, D.C. suburbs, local rent limits matter most: Montgomery County and Prince George's County both cap yearly rent increases for most older buildings.

This is the Maryland version of our general syndication guide. It covers what changes when the building, the investors or both are in Maryland. It is general information, not legal advice.

What is the Maryland Rule 506 notice filing?

Maryland treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and the fee, filed through the NASAA Electronic Filing Depository (EFD) for the Securities Division of the Maryland Attorney General's Office. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $100 and a $150 late fee if the notice comes more than 15 days after the first sale in the state. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in Maryland?

A Maryland LLC is formed by filing Articles of Organization with SDAT; the published fee is $100. Each year the LLC files an annual report, with a $300 fee, by April 15. An LLC formed elsewhere that will own Maryland property registers as a foreign LLC. Confirm fees on Maryland Business Express before you file. See forming an LLC for a syndication and keeping the LLC in good standing.

Does Maryland have rent limits?

Not statewide, but some counties and cities do. Montgomery County's rent stabilization law (2023) caps yearly increases for most units at 3% plus inflation, with a 6% ceiling, and exempts buildings for 23 years after they are built (Bill 15-23). Prince George's County adopted its own cap, and Takoma Park has long had rent stabilization. Each has its own exemptions, notice rules and filings. Read the current local rules before you write a rent growth assumption. See rent control laws for apartment investors.

Maryland's landlord and tenant law is in Title 8 of the Real Property Article. A landlord must return the security deposit, with interest where owed and a written list of any deductions, within 45 days after the tenancy ends, and Maryland caps the amount of the deposit. Maryland changed several tenant rules in 2024, including how deposits may be collected, so use current lease forms. For unpaid rent, the landlord files a failure to pay rent case after giving the written notice the law requires. Many counties and Baltimore City also require rental licenses and inspections.

What does Maryland charge when an apartment building sells?

Maryland charges a state transfer tax of 0.5% of the price, plus county transfer and recordation taxes that vary widely; in some counties the combined rate is well above 1%. Buyer and seller split these by custom or by contract. Get a title company estimate and put your share in sources and uses.

How does Maryland property tax work for an apartment building?

SDAT reassesses each property every three years, phasing in any increase over the three years, and income property may be valued using the rents and expenses. A homestead cap limits increases for owner-occupied homes only, so it does not help an apartment building. Owners can appeal each new assessment. Underwrite taxes from the value you expect at the next reassessment. See property tax reassessment in apartment underwriting.

Does Maryland tax the deal LLC or its investors?

Maryland taxes income earned in the state and counties add a local income tax, and a pass through entity generally pays tax on nonresident members' share of Maryland income. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; on new deals, the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the Maryland Rule 506 notice fee?

$100, per NASAA's fee schedule. EFD shows the final amount before you pay.

Is there a Maryland late fee?

DoorRaise's data lists a $150 late fee if the notice comes more than 15 days after the first Maryland sale.

What does a Maryland LLC pay each year?

A $300 annual report fee, due by April 15.

Does Montgomery County limit rent increases?

Yes, for most units: 3% plus inflation, at most 6%, with exemptions for newer buildings.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.