1. An Overview of Annual Reports in Maryland
2. How to File a Maryland Annual Report
3. Requirements for Corporations in Maryland
4. Corporate Records in Maryland
5. Taxes and Fees for Maryland Corporations
6. Filing a Personal Property Return

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.

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

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.

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.

If you need help with an annual report in Maryland or another state, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.