How to Form an S-Corporation in Maryland
Maryland is a Mid-Atlantic state defined by its abundant waterways and coastlines on the Chesapeake Bay and Atlantic Ocean. Its largest city, Baltimore, has a long history as a major seaport. However, Maryland is now rooted in high technology, biosciences, manufacturing, and international trade.
When forming an S-Corporation in the state of Maryland, you must complete the following requirements:
- Select a business name according to requirements
- File articles of incorporation and submit filing fees
- Fulfill registered agent requirements
- Register your federal tax ID
- Complete annual reports
- Appoint Managers
Let Eco-fyle help you fullfil your business needs.
Select Business Name According to State Requirements
• Name requirement: Your name must include “Corporation,” “Incorporated,” “Limited” or an abbreviation of one of these words.
o Tip: Most corporations go with “Corp.” or “Inc.”
File Articles of Incorporation and Submit Filing Fees
• To start a corporation in Maryland, you must file Articles of Incorporation with the State Department of Assessments and Taxation (SDAT).
• Filing Fee: At least $120.
o The filing fee is $100, but there is also an “organization and capitalization fee” of $20.
• This fee increases if you have over $100K in combined par value (or over 5K shares with no par value).
o Need your approval fast? For most filing methods, expediting is an extra $50. Online filing is quick and only $150 total plus a 3% convenience fee.
• Processing Time: Maryland filing times depend on expediting and filing methods.
o Filing online takes 1-3 days, mailing an expedited filing takes about 7 days, and mailing a standard filing can take up to 4-6 weeks for approval.
o If you need your Articles processed on the same day, you can drive to SDAT in Baltimore, pay for expediting, and hand deliver your filing during business hours.
Fulfill Registered Agent Service Requirements
• Your Maryland corporation will need a Maryland registered agent (also called a “resident agent”).
• A resident or registered agent accepts legal notifications on behalf of your business.
Register Your Federal Tax ID Number
• The IRS requires corporations to obtain an EIN for federal tax filings.
• You will also need your EIN to register with the Comptroller of Maryland for taxes.
• You can apply for an EIN directly with the IRS for no fee.
• Also, any businesses in Maryland are required to file a Maryland State Tax ID Form and obtain a state tax identification number.
Complete Annual Reports
• Annual Report Deadline: The Annual Report is due by April 15th every year.
• Filing Fee: $300, plus a 3% convenience fee if paid by credit card
o Late fees can be as much as $500, depending on how late your filing is and how much you owe in personal property taxes.
Appoint Managers
• Minimum number: Corporations must have one or more directors.
• Residence requirements: Maryland does not have a provision specifying where directors must reside.
• Age requirements: Maryland does not have age requirements.
• Inclusion in the Articles of Incorporation: Director names and addresses are required to be listed in the Articles of Incorporation.
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The team at Eco-fyle is eager to meet you and help you pursue your goals of
incorporation. Request a consultation with one of our specialists!