Key Takeaways

  • Every business registered in Maryland must file an annual report (also known as a Personal Property Return) with the Maryland State Department of Assessments and Taxation (SDAT) by April 15 each year.
  • The filing fee is generally $300, but proposed legislation could eliminate this fee for online filings, making Maryland the first state to offer a no-fee option for annual reports.
  • Businesses that fail to file on time risk losing good standing status, which can affect their ability to obtain financing, licenses, or legal recognition.
  • Proper documentation—including SDAT ID, FEIN, and asset details—is essential to ensure accurate filing.
  • Filing online through the Maryland Business Express portal helps avoid late penalties, maintain compliance, and streamline future filings.

An Overview of Annual Reports in Maryland

A Maryland annual report, also known as a personal property return report, is a comprehensive report that a business files every year. It includes information on the business's activities during the prior year. Shareholders and other parties invested in the company use the report to obtain important information about the business's activities and its financial standing.

Businesses file these information updates with the Secretary of State. Depending on the type of business you run, your company is subject to various fees, taxes, or renewal terms.

How to File a Maryland Annual Report

Each year, all businesses registered in the state must file a long form, known as the annual personal property return. You fill out the form and send it to the Maryland State Department of Assessments and Taxation. You must also pay the required filing fee.

Completing the return is similar to filling out a tax return. For anyone who doesn't own property in the state of Maryland, it's not very complicated.

Any charities in Maryland must be registered with the state. They're required to file a form known as the Annual Update of Registration, and they must pay an update fee.

Proposed No-Fee Option for Online Filings in Maryland

Maryland is taking steps to make business compliance more affordable. A proposed law announced by Governor Larry Hogan would eliminate the $300 annual report filing fee for businesses that file their reports online through the Maryland Business Express portal. If enacted, Maryland would become the first state in the country to provide a no-fee option for filing annual reports, saving most entities $300 annually and family farms $100 per year.

This proposal encourages businesses to file electronically—an option that already offers convenience and faster processing through SDAT’s online services. With over 460,000 Maryland businesses currently in good standing, the initiative is expected to boost online compliance and reduce administrative costs for both businesses and the state.

Requirements for Corporations in Maryland

Once you form a corporation, you're required to follow specific steps to ensure your business remains in compliance. These steps are typically ongoing. By following the state guidelines, you'll be able to preserve your limited liability status that a corporation gives to its owners.

Corporate Records in Maryland

Corporations in the state of Maryland are required to keep certain information along with their corporate records. This information must be either in written form or a format that someone can easily convert to written form. The information includes: 

  • Records and books of a corporation's transactions and various accounts
  • The minutes of all meetings between directors and shareholders
  • The minutes of meetings involving committees that exercise a board of directors' powers

Maintaining Proof and Monitoring Compliance

After filing, always save a copy of your annual report and retain the submission confirmation from SDAT. These serve as proof of compliance and can help resolve disputes or confirm standing during audits. You can check your report’s processing status at any time through the Maryland Business Express portal.

If you identify errors after submission, SDAT allows for amended filings within three years of the original due date. Staying organized with past filings and reminders for the April 15 deadline helps ensure consistent compliance and avoids unnecessary penalties.

Taxes and Fees for Maryland Corporations

Corporations in Maryland are responsible for each of the following:

  • Annual report: Corporations must file an annual report with the state. The deadline is April 15, and the fee to file is $300.
  • Taxes: Visit the State of Maryland to get detailed information about state taxes that Maryland corporations are responsible for.
  • Federal tax ID number (EIN): This ID number is a requirement for corporations that employ people. In addition, many banks make it a requirement to have an EIN to open a bank account for the business.
  • State tax ID number: This is a requirement in Maryland.

Penalties and Loss of Good Standing

Failure to file your annual report or pay related fees and taxes can cause a business to lose its good standing with the SDAT. A company not in good standing may face:

  • Revocation of charter or legal authority to operate in Maryland
  • Ineligibility for state contracts, financing, or licenses
  • Inability to file legal documents, such as amendments or mergers

To restore good standing, businesses must address all outstanding reports, penalties, or fees and confirm reinstatement with SDAT. Maintaining compliance by filing annually and keeping your resident agent information updated ensures that your business remains authorized to transact in Maryland.

Filing a Personal Property Return

Corporations will report to the Maryland State Department of Assessments and Taxation, also known as the SDAT. They file a form known as the Annual Personal Property Return. You can find the form at the agency website. You'll also find instructions for filling out Form 1 at the site. You may file online or by mail. 

To file online, visit the Maryland Business Express site. Fees include a state fee of $300 plus a fee for paying by credit card of $9. The deadline is April 15 of every year; as long as your mail-in form is postmarked by this date, it's on time. 

There may be penalties for businesses that hold property in the state and do not file on time. A late fee is calculated as a percentage portion of your county assessment, with interest. Businesses without property in the state do not pay late fees. However, failing to file and pay fees may result in revocation or dissolution. Forms must include original signatures of an officer or principal.

Keeping your business in compliance with the state requires you to follow certain steps and pay specific fees each year. You can always consult your Secretary of State office if you need more information on tax, fee, and filing requirements. By adhering to your state's particular guidelines, you'll be able to ensure your company remains in good standing. Most states give several filing options to make the process more convenient, so take advantage of the method you prefer.

Checklist Before You File

Before you file your Maryland Personal Property Return, gather and verify the following information:

  • Legal business name and trade name (if applicable)
  • Federal Employer Identification Number (FEIN) and SDAT Department ID
  • Physical address(es) for all property locations
  • Year and cost of asset acquisition, plus depreciation schedules
  • Details on leased, sold, or disposed property within the year
  • Gross Maryland sales and business activity description

Although Maryland does not require a specific filing template beyond the official forms, using a checklist helps reduce filing errors and ensures that no required information is overlooked.

Frequently Asked Questions

  1. What is the deadline to file a Maryland annual report?
    The annual report is due April 15 each year. Filings submitted or postmarked after this date may incur late fees.
  2. How much does it cost to file the Maryland annual report?
    The standard fee is $300 for most entities and $100 for family farms, but legislation may soon make online filings free.
  3. What happens if I don’t file on time?
    Failure to file can lead to penalties, forfeiture of good standing, or revocation of the business charter.
  4. Can I file my Maryland annual report online?
    Yes. Use the Maryland Business Express portal to file online, pay fees, and monitor report status.
  5. How can I restore my company’s good standing?
    You can file any missing annual reports, pay overdue fees, and contact SDAT to confirm reinstatement once compliance is restored.

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