Did you submit and went to the jail or you killed all of the guards?
I killed all of the guards

I killed them and submitted later. Couldn't find another way to start the subsequent quest.

EDIT: Btw, I think this may be in the wrong board.

I submitted, and that choice sounds like it was better than just killing the guards.

Its true that you have to go to jail, i slaughtered the guards the first time... at least i thought i did, i went outside and one followed me out and attacked me meaning i had the whole of markath trying to kill me... i won.. then reloaded an earlier save and submitted

not true you can loot the corpses and get your pay the guy was originally going to give you.

Should be in the spoiler section.

I've only ever done the first part of this quest. Every time that creepy man 'drops' his note into my hands I just get the heebie jeebies and decide not to follow it up. The only time I did follow the lead and got to the part where you return to him for some reason the quest broke and the guards did not arrest me. The second quest never started.

Went to jail because doing anything else causes bugs.

Meh, I remember that I killed the guards, and from that point on, whenever I was in the Reach, a guard would run up to me and start repeating the "You've committed crimes" conversation, no matter what I selected afterwards.

There is a bug and i lost my companion but i load a earlier save

I submitted, as I didn't want to have to fight all of the guards and not be able to do other Markarth quests. Unfortunately, a 1k bounty remains in the log afterwards, even after being freed. Even if no one's trying to arrest me, I'd like to have a clean slate.

Went to jail, I sensed there would be a way to clear my name in there. I certainly was not going to prove my guilt in the minds of my accusers by slaying a bunch of guards.

I didn't mind that, just reasoned it as a miscarriage of justice. Like when I killed a bunch of Thalmor agents who attacked me when I walked up to them and somehow recieved a 1000 gold bounty in Falkreath.

I had like 9 murders in my stats as well as 18 assaults, never killed or attacked an innocent in my entire playthrough. A bunch of Khajiit traders attacked me one time and I killed them all, counted as murder for some reason.

Same thing happened with Stormcloak soldiers in the CW questline and when attacking Stormcloak camps after I'd completed it.