Maryland Secretary of State is the entity that issues what is called certificate of existence or the Certificate of Good Standing in Maryland. Maryland Certificate of Good Standing shows the existence of a corporation or limited liability company (LLC) and verifies that it has been properly organized and registered to conduct business in the Maryland. This certification can be received in as little as one business day from the state in which your firm is headquartered.

Your company’s certificate of good standing should include its name and date of incorporation or qualification, a statement that it is authorized to do business in the state, confirmation that the company’s annual taxes have been filed and paid, and confirmation that the company has not filed Articles of Dissolution or an Application for Withdrawal.

• To get a Maryland Certificate of Good Standing, a company must show that it is in good standing with the appropriate authorities.
• The company must abide by all tax regulations.
• To date, the firm has filed all necessary paperwork with its home state and paid any yearly or biannual fees.
• Both the company and its owner follow all local regulations.
• The state has not canceled or halted the company’s operations.

Why a Good Standing is necessary for your business:

A Certificate of Good Standing is necessary for your company to be eligible to conduct business in states other than its home state if you plan on growing internationally. You will need good standing certificate in following circumstances:

• Opening a Bank Account – Keep in mind that certain financial institutions call for this Maryland Certificate of Good Standing before granting your firm an account.
• When applying for financing or a loan, most financial institutions will ask to see a Maryland Certificate of Good Standing to ensure the firm is legitimate.

• Should You Decide to Sell Your Company, You Will Need to Provide the Buyer with This and Other Documents Showing That Your Company Is Not Under Sanction, Suspension, or Disciplinary Censure
• This document may be necessary to facilitate a business transaction, such as obtaining a credit line from a supplier or forming a partnership or cooperation.
• The renewal of a firm’s license is a legal necessity in most places, and only when the company has proven that it has filed all required paperwork and paid all associated fees and taxes can the license be renewed.
• This certificate confirms the company’s validity and may be requested by potential investors or partners.

How to get Maryland Certificate of Status (Quick Steps)

Follow the steps below to get Maryland certificate of status:

1. Visit the Maryland Business Express website
2. Select Certificate of Status, and
3. Enter the firm entity’s name,
4. Now generate a certificate for your company

A Certificate of Status can be purchased for $20. A flat $20 rush fee is added to every order. The initial Certified Copy costs $20. It costs $1 per page for additional Certified Copies. It costs $1 per page for unofficial copies. Your credit card will be accepted as payment.

What you could require to submit with the application:

• Company information including name, address, incorporation date, email, and contact persons.
• State-issued identification number or entity ID assigned by the relevant authority upon formal incorporation or registration.
• A Federal Employee Identification Number (FEIN) or Social Security Number (SSN)

What could get you kicked out of good standing?

You could lose your good standing for a number of reasons, but you would know about all of them at the time. Nothing could cause you to lose good standing secretly or without your knowledge. For example, you could lose your good standing if:

• Not filing annual reports when you have to.
• Not keeping a registered office or agent as required.
• If franchise taxes are due, they are not paid.
• Not making all of your payments on time.
• Making mistakes on forms that are filed.
• Having your business or job license taken away.
• Crimes committed by the company or its owner.
• If you don’t file the necessary paperwork.

Let’s say you haven’t paid the IRS or other government agencies when you were supposed to. In that case, you won’t get a Maryland certificate of good standing even though you asked for one. Most of the time, getting back in good standing is easy.

Also, most people lose their standing because they didn’t pay a tax or fee or didn’t file a certain document. Once these problems are fixed, you’re back in good standing. This means that getting your good standing back could take anywhere from a few minutes to a few hours at most.

But there are times when you might have to do more work to get back on track. You can find out exactly what is stopping you from getting your certificate and what you need to do to fix the problem by talking to your state agency.

Resolving Poor Standing

If you are in bad standing, you will have to take care of any unresolved problems before you can get back into good standing. You may also need to send more forms to the state where your company is registered and show that all problems have been fixed.

The forms will also need to be reviewed, which will cost a fee. You will need to find out from your state what the exact fees are. The steps of the process are:

• Figuring out what fees are still due or haven’t been paid
• Paying all fees that are still due.
• Getting all of the forms needed for reinstatement.
• Checking reinstatement forms for mistakes.
• Submitting forms for reinstatement that are filled out.
• Paying the required application filing fees.
• Once you’ve done all of these things, your company can be back in good standing.

How to get in good standing?

To be in good standing, follow the steps below.

File annual reports

State of Maryland is different from most other states because business owners don’t have to file annual reports with the secretary of state. In this case, the annual report is tied to the business personal property tax of the state. The things your company owns that can be moved around are called “business personal property.” It has office supplies, furniture, computers, and other machines, but not the building itself. Even though all LLCs and corporations have to file an annual report, business entities will also have to file a personal property tax return along with their report if:

• Personal property you own, rent, or use in the state
• Require a trader’s license or other licenses from their local government or keep them up to date (for example, the Liquor Board or Clerk of the Court)
• The Maryland Department of Assessments and Taxation (SDAT) is where the annual report for Maryland is filed in.

With a few exceptions, most states require you to file online. You can file your Maryland annual report online through Maryland’s Business Express portal or by mail. If a business doesn’t file a report or misses the deadline, there will be consequences.

Maryland’s annual report for corporations and LLCs

In State of Maryland, filing annual reports is the same for both LLCs and corporations. The filing fees are one of the bggest differences. Most LLCs and corporations have to pay a $300 filing fee. This is true whether or not the business makes money or owns or rents property in the state. There are only three exceptions:

• Foreign companies that don’t have stock.
• Domestic companies that don’t have stock.
• Foreign interstate corporations.

Also, businesses have to fill out a different part of their annual report. In Section II, you can find the names and mailing addresses of all of the company’s officers and directors. Some companies may also have to report the total number of directors vs. the total number of female directors. This is only in Maryland, and in 2019 it became the law.

Where should you file annual report for Maryland?

Filing online is the easiest way to send in your annual report. This can be done through the Business Express portal in the state of Maryland. To sign in, you’ll need to make a username and a password, as well as give your primary phone number and email address.

You can also file your annual report by mail or turn it in in person. This means that business owners have to print out Annual Report Form 1 and fill it out. Some businesses will also have to fill out a return for personal property tax. On maryland.gov, you can find that form and its instructions. The Department of Assessments and Taxation should receive all documents and payment (a check or money order) by mail.

You can also bring your forms to the headquarters of Maryland’s Public Services Commission in Baltimore, but check first. All handwritten signatures on printed forms must be original, or the state will not accept them.

When is the annual report for Maryland due?

In some states, the due date for an annual report depends on when a company was legally formed. But in Maryland, all businesses have the same due date. Every year, reports are due on April 15, unless that falls on a weekend. If that’s true, it’s due the Monday after that. Filings sent by mail must have a postmark by the end of business on that Monday or they are late.

SDAT gives businesses a free 60-day extension if they can’t meet the April 15 deadline. You have to file for an extension online before the original due date, and SDAT suggests that you do so as early as December because their website gets busy. Those who get an extension must turn in their paperwork by June 15, or they will no longer be in good standing.

How much does it cost to get the annual report for Maryland?

The fee of filing an annual report depends on the type of business. The fee that most businesses pay is $300. These are the exceptions:

Non-stock corporations both at home and abroad, which are exempt.

Foreign corporations that operate across state lines are exempt.

Family farms that are certified by SDAT and pay $100.

Also, sending in changed filing returns doesn’t cost any more in fees to file. This is only done if you have already filed business personal property tax returns with mistakes or if you want to claim an exemption you missed. Maryland Department of Assessments and Taxation website has more information on how to make changes to your tax returns.

Maryland has a number of ways to pay, but most businesses use credit cards to pay for online filings. Checks or money orders made out to the Maryland Department of Assessments and Taxation can be used to pay for mail-in filings.

What do I need to know to file my annual report in Maryland?

Before you can file your Maryland annual report, you need to get specific information about your business. Again, this depends on the type of business entity, but there are some things that all businesses need to know:

• Business name.
• The address for mail.
• Your department’s ID number (you can find this using Maryland’s business entity search).
• Your employer identification number from the government (EIN).
• What your business does.
• A trade name.
• Your email address.

Corporations will also have to send in the names and mailing addresses of their directors and corporate officers. Most companies that have made money in Maryland will also need to know how much money they made in total.
You must also file a separate form if you want to change your business’s principal office address or registered agent. You can either do this online or by filling out the form as instructed.

What happens after I file in my annual report for Maryland?

Once annual reports are filed, they become public records. This means that anyone can use Maryland’s business entity search to find the information. Tax returns on personal property can also be checked. If you make a mistake on your tax return, the department may ask you to fix it. Changes don’t cost anything.

What if I don’t file my Maryland annual report by the due date?

In Maryland, if you miss the deadline to file your report, you’ll at least have to pay late fees. In the worst case, you could endanger the way your business is set up. After the personal property tax return is filed, late fees are figured out, and the department will let businesses know how much they owe once the full amount is figured out.

The fees for being late range from $30 to $500. Overall, the penalty is 1/10 of 1% of the county assessment or the base penalty, whichever is higher. After 30 days, 2% of the original penalty is added to the debt as interest. If a business doesn’t file an annual report, it will lose its right to be an LLC or corporation in Maryland. Without that business structure, the company would no longer be protected from liability. But it’s possible to reinstate a business back to life by filing for a Certificate of Reinstatement (LLC) or Articles of Revival (corporations). For either type of business, the fee to reinstate an is $100.

File your taxes

When you file your own taxes online with the IRS, which is sometimes called “e-file,” you have two options: Free File and Free File Fillable Forms. You can use Free File if your adjusted gross income (AGI) for the year is less than $72,000. If it’s more than that, you’ll have to use Free File Fillable Forms. If you have a complicated tax situation, you may need to hire a professional to help you file your taxes. The cost of filing taxes varies, but small business owners may find it worth it to have peace of mind.

Free File

With Free File, you do your taxes online using software that sends a copy to the IRS automatically. Filling out forms or doing math doesn’t require getting your hands dirty. About one-third of Americans use it, so it’s a popular choice.

The IRS works with nine companies that offer free online tax filing. So, you don’t sign up for Free File on the IRS website. Once you sign up with one of the 9 approved providers, you automatically start using it.

How to Choose a Free File Service

You can use the free tax filing package from each provider. There are also paid levels that have more features. In general, you’ll need more features the more complicated your tax filing is.

If you own a business, a free filing package probably won’t be enough. It won’t have the advanced features you need or the forms your business needs to file.

File Fillable Forms for Free

Basically, when you use Free File Fillable Forms, you are filling out electronic versions of paper tax forms. You do it on the website for the IRS. They can do simple calculations, but they don’t check for mistakes. It’s up to you to make sure everything is filled out right.

How things work?

Once you sign up for an IRS Free File Fillable Forms account, you can log in to choose and fill out the forms your business needs. After you fill out the main part of your tax return, you’ll need to choose which income documents you want to include, like W2s or Form 1099s, and then enter the information from those documents.

Free Fillable Forms will figure out how much of a tax refund you’ll get or how much you’ll have to pay. By entering your bank information and setting up a direct Electronic Funds Transfer, you can pay your taxes or get your refund (EFT).

Last, you sign your return electronically and send it to the IRS. You can choose to print a copy for your own records.