Maryland Corporation

What is a Maryland Corporation?

Maryland Corporation or Maryland INC, is a business formation registered with the Maryland Secretary of State. The Maryland Corporation will be able to issue shares of stocks to employees and investors, unlike an LLC in Maryland.

Maryland Corporation Requirements

1. State Filing Fee of $125.
2. A Registered Agent located in Maryland. See our service here.
3. Articles of Incorporation.
4. Beneficial Ownership Information Report filing. Your report must be submitted after company formation starting January 1, 2024.

Maryland Corporation Structure

MD Corporations are structured legally with the Maryland Articles of Incorporation. Like many states, the document for a Corporation formation is short and simple.

The required information to be listed:

• Filer Information
• Name
• Purpose
• Principal Office
• Resident Agent
• Shares
• Directors

Filer Information

All how are incorporating will list their names and addresses where mail can be received for the Corporation.

Name

A name is to be chosen for the Corporation that is not indistinguishable from another filed business name in Maryland. The name for the business must include the word “Corporation”, “Incorporated”, “Limited”, “Inc.”, “Corp.” or “Ltd.”.

Purpose

A one or two sentence of the description of the business is acceptable.

Principal Office

An address in Maryland is required for the Principal Office. This address may not be a PO Box.

Resident Agent

The agent that is responsible for accepting service of process for a Corporation will be listed. An address is also required and the address can not be a PO Box.

Shares

The number of shares of stock and the par value of each share will be inserted into the Maryland Corporation Articles of Incorporation. If the value of stock exceeds $100,000, the filing fee will increase.

Directors

The number of adults who will be on the Board of Directors and their names is required information to form the new Corporation in MD.

How to File a Maryland Corporation

Steps to Incorporating a Maryland Corporation:

1. Maryland Corporate Name: When naming your corporation, you must use a corporate designator: Corporation, Incorporated, Limited, Inc., Corp., or Ltd. The name has to be distinguishable from all other entities already on record. A Business Name Search will help determine current availability.
2. Articles of Incorporation: To form a corporation, you file Articles of Incorporation with the Department of Assessments and Taxation. There are two associated fees: $100 filing fee and $20 for organization and capitalization. The Articles can be filed online, by mail, fax or in-person.
3. Resident Agent Service: State law requires entities to appoint a resident agent to accept service of process on behalf of clients. An agent must maintain a registered office, a physical street location where mail can be delivered in-person during regular business hours.
4. Corporate Bylaws: Corporate Bylaws are the core governing document of your company. Bylaws designate the initial shareholders, the type and amount of shares they own, and all their rights and responsibilities. Bylaws also outline the management structure: the Board of Directors, corporate Officers (President, Vice President, Treasurer, Secretary).
5. Corporate Bank Accounts: Your new corporation will need business accounts to process monetary transactions. To open a corporate bank account, you will need to contact a local bank branch to determine their exact requirements, though most banks will need to see, at least: copies of your Articles, Bylaws, and an initial resolution authorising the opening of accounts.
6. Personal Property Tax Return: Each year, business entities in Maryland are required to file a Personal Property Tax return (PPT). This must be submitted to the DAT by April 15 or else fines will be imposed. The annual charge for stock corporations is $300 ($309 with credit card convenience fee).
7. Beneficial Ownership Information Report: You must a file a BOI report with the Financial Crimes Enforcement Network after formation, starting January 1, 2024. The BOI report is free to file and must be submitted online.

What is a Principal Office Address?

Your principal office address must be a physical street location in Maryland. This is the main office of your Maryland Corporation, the place where you keep your corporate books and financial records.

How Do I Calculate My Incorporation Filing Fee?

The filing fee is technically based upon the stock your corporation authorizes on its Articles of Incorporation. You can elect one of two options:

• Authorize Stock With a Par Value
• Authorize Stock Without Any Par Value

Par value is not the actual value of your stock. It is the lowest price point for which the stock can be sold. If you designate a PV of $1, then your stock can never be sold for any price under $1 per share.

For stock with a par value, your filing fee will increase beyond the standard $100 if your aggregate PV (the number of shares multiplied by the PV) exceeds $100,000.

For stock with no PV, your fee will increase if you authorize more than 5000 shares.

To determine the exact charge in either situation, you will need to contact the DAT.

Maryland Resident Agent Service

A Maryland resident agent is required to provide a registered office within the state, which must be a physical street location, not a PO box. Agents must keep regular business hours throughout the year in order to accept service of process on behalf of their clients. When documents are accepted, the client must be contacted and the documents forwarded in a timely manner. This ensures that clients are made aware of any litigation impending against their company.

Annual Personal Property Tax Return

Each year your Maryland Corporation is required to file a PPT return by April 15. This can be filed online. The filing is a Form 1. The fee for stock corporations is $300.

Federal Beneficial Ownership Information Report Filing

Starting January 1, 2024, most newly-formed corporations are required to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) following company formation. On your report, you’ll need to disclose some basic details about your company and those with the most control over your corporation’s profits and operations. Save yourself from the additional paperwork with our $25 BOI report filing service.

Why Hire Corporate Filing Solutions to Form Your Maryland Corporation?

Starting your Corporation in Maryland shouldn’t be a hassle or a time consumer. That’s why we offer Filings Made Easy™ to make starting a Corporation in Maryland super easy.

Hire us and relax while our filing experts form your new Maryland Corporation. Our staff will process orders the same business day as they are received. To make things even easier, we bundle the first year of registered agent service and ensure your Maryland Corporation comes fully equipped and ready to do its job.

Start your Corporation in Maryland and get Registered Agent service for as low as $55 a year.