Should you form your corporation in Maryland? We've collected the relevant information that will help you make this decision.
- Filing in-state minimizes paperwork
- Home to one of the top 20 metro areas in US
- Qualified workforce
- Flat tax rate of 8.25% on all corporate income
- Competitive market
Cost of doing business
- $120 filing fee / $300 periodic report
- Owner disclosure in original filing
Forming your corporation in Maryland
In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Company”, or “corporation.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also certain restrictions on terms in the financial industry. Parentheses cannot be used in corporation names in Maryland either. Do a FREE name search now.
Board of directors requirements
You will need to form an official board of directors when incorporating in Maryland. Here are the states explicit regulations regarding these directors:
- Required number of directors
Maryland corporations must have at least one director listed in their incorporation documents.
- Age restrictions
Directors of corporations located in Maryland can be of any age.
- Residence restrictions
There are no residence restrictions imposed on the directors of C corporations in Maryland. However, S corporations are only allowed to have directors located in the United States.
- What information needs to be included in the Articles of Incorporation?
Maryland does require the names or addresses of directors to be disclosed in incorporation documents.
Requirements for the Articles of Incorporation
The Articles of Incorporation is a document that must be filed during the incorporation process in every state. Here is the information that must be included in this document when filing in Maryland:
Maryland requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.
The state of Maryland does not require officer information to be disclosed during the filing process.
Registered agent information
All Maryland corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.
If your business is a professional practice
Professional service corporations are permitted to form under the professional corporation (PC) structure.
Corporate record keeping requirements
Corporations are required to keep formal documentation regarding several of their operations. These are the explicit record keeping formalities required by Maryland:
- In-depth financial records
- Meeting minutes for all shareholder, committee, and director meetings.
Maryland corporate taxation and fee requirements
There are several tax and fee requirements that must be addressed by corporations in Maryland. They are as follows:
All states have complex taxation requirements. For more information regarding taxes in Maryland, it is advised that you visit the state’s official business related website.
Annual report requirements
Corporations in Maryland are required to file an annual report every year before April 15th. The filing fee associated with this process is $300. Learn more about annual reports.
Tax identification numbers
Maryland requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. Maryland does require corporations to obtain state tax ID numbers. Learn more about EINs.
Business license requirements
The business licenses and permits required in Maryland vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.
S corporation election
Maryland does not require a state-level S corp election, as they recognize any elections held at the federal level.
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