MD Corporation Filing Fees and Requirements

How Much Does It Cost to Form an MD Corporation?

Legal business registration — and keeping your business in good standing — involves necessary expenses and investment. Some of these costs are payable to the MD Secretary of State, while others are due to additional state entities or the federal government. Here are some common requirements and fees.

Please note that fees for a State of Maryland business license or permit may be due when you first form your business, on an ongoing schedule or on an ad hoc basis. Find more details below.

Initial Maryland Corporation Filing Fees

When starting a business in Maryland State, you’ll need to file a form and pay a filing fee. Here are the current Maryland corporation filing fees and times:

When you use Incfile to register a business in Maryland, we charge you the state filing fee and forward it to the Secretary of State when we file your incorporation paperwork.

Employer Identification Number

Every corporation in the country should have a unique EIN (Employer Identification Number) from the Internal Revenue Service. You'll use it when you open a business bank account, file taxes and pay employees. You can get one directly from the IRS, or Incfile can get one for you.

Foreign Corporations

If you want to do business in a state other than the one where your business is based, you must create a Foreign Corporation.

Maryland Foreign Corporation Registration

Before you can bring an arm of your business from another state into Maryland, you must request Maryland Foreign Qualification. This means the state gives you permission to conduct business there.

To request registration of a Maryland Foreign Corporation, you must complete an application for Foreign Qualification and pay a processing fee of $100. The state may have additional registration requirements, so contact the Maryland State Secretary of State directly for more information and to ensure you're in compliance with MD corporation law.

Foreign Qualification to Operate in Another State

If you plan to expand your Maryland corporation into another state, you’ll first need Foreign Qualification or a Certificate of Authority from that state. This is necessary before you can create a physical presence, hire employees or bank in that state.

You'll likely have to complete at least one application and pay a filing fee, but each state has its own requirements. Before you start the process, compare state filing times and state filing fees so you can plan accordingly.

Above all, contact the state government entity that administers business (usually the Secretary of State) to confirm their requirements and for specific instructions.

If you need assistance, Incfile provides a complete Foreign Qualification service for all states.

Maryland Annual Report Requirements

Most states require business entities to file an annual (or other periodic) report. Maryland requires an annual report to be filed once a year with the MD Secretary of State.

When you complete your annual report, you'll do so online via the Business Express Portal accompanied with a filing fee of $300 in addition to a service fee of $3 or 3% depending on which payment method you choose.

State of Maryland Business License and Permit Requirements

Before you start doing business, you must secure the necessary state, federal or local business licenses and permits to operate your corporation. Some of the fees will only need to be paid once, while others may be ongoing charges.

Permits and licenses vary based on:

Corporate Bylaws

You are required to have Maryland corporation bylaws if you form a corporation in the state. You won't need to file them with the Maryland Secretary of State, but make sure you have them with your documents and by all means, continue to follow them.

The bylaws must then be adopted (and amended, if necessary) by the board of directors and shareholders.

Drafting a set of bylaws can be extremely helpful in making sure you’re organized and can help protect your business from any future changes and events that may affect your business.

Other MD Corporation Filing Requirements and Fees

The State of Maryland requires you to complete a few more tasks before you can begin conducting business.

Appoint a Director

Some states require corporations to appoint a full board of directors. MD corporation law requires all corporations to have at least one director.

Appoint Officers

In Maryland, the board of directors must elect at least one president, secretary and treasurer. One person may hold more than one office in a corporation but may not serve concurrently as both president and vice president of the same corporation.

Issue Stock to Shareholders

To raise business capital and keep it separate from company owners' money, every Maryland corporation must sell stock to its shareholders. The Articles of Incorporation must authorize the sale of at least one class of share, and the corporation cannot sell more shares than are authorized.

Hold Annual General Meetings

This is one area where Maryland differs from other states. You are required to hold annual meetings, and it's generally a good idea to do so. But should you fail to do so, Maryland Code Title 2, Subtitle 5, § 2-501 states, "The failure to hold an annual meeting does not invalidate the corporation’s existence or affect any otherwise valid corporate act."

Get a Trade Name or DBA

If you want to register a Maryland DBA (trade name), you must complete the filing process online via the Business Express portal with the Secretary of State and pay a filing fee of $25 along with a service fee of either $3 or 3% depending on which payment process you choose.

Change the Registered Agent

If your corporation is based in Maryland, then you must have a Registered Agent in the state. You'll need to appoint one when you first file your Articles of Incorporation. You can also change to a new Registered Agent later by updating the information via the online business portal and paying a fee of $25 along with a service fee of $3 or 3% depending on which payment process you choose.

Reserving a Name for Your Corporation

If you're not quite ready to start your business, you can reserve a name for 30 days with the Maryland Department of Assessments and Taxation by filing a form and paying a fee of $20. First, conduct a MD corporation search and learn the state's business naming rules to ensure you choose a name that meets legal requirements.

Amending Facts About Your Corporation

When you incorporate, the Maryland business forms you fill out include certain facts about your business at that time. Through the years, some or all of this information may change. If it does, you'll need to file Articles of Amendment online via business portal with the Secretary of State along with a filing fee of $100. You'll also need to pay $3 in payment service fees. You can do this yourself or Incfile can do it for you.

Get a Certificate of Good Standing

Some organizations may request that you prove your corporation's compliance with laws and tax requirements. In most states, this proof is provided with a Certificate of Good Standing. In this state, it's an MD Certificate of Status.

If you need to prove you have met your commitments, you’ll need to request an MD Certificate of Status from the Secretary of State. You can do this by placing an order online via the Maryland Business Portal paying a fee of $20. A service fee of $3 or 3% is also due at this time.

The information listed above details many of the fees a standard corporation will be required to pay in Maryland. In some circumstances, there may be other one-off, periodic or ad hoc fees not listed above.

Of course, your corporation will also probably need to pay federal, state, self-employment (if it's an S Corp) and other taxes. You'll find more information on the Maryland taxes page.