Why is “Good Standing” Important to My Business?
A Good Standing status with the State of Maryland means you maintain compliance with any applicable Maryland laws AND you are legally eligible to conduct business, apply for funding, grants and other opportunities, such as Frederick County’s S.H.E. Pitch Competition, and participate in contracting opportunities. Potential customers, partners, suppliers, and others can check your status, and it can be a red flag if you’re Not in Good Standing, so it’s important to stay current on all of business filings to maintain your status.
How Do I Remain in Good Standing with the State of Maryland?
Every year, Maryland’s business entities must file an Annual Report. They may also need to file a Personal Property Tax Return (see next section for details). Both filings, and the associated fees, are due by April 15 to remain in Good Standing unless you file a deadline extension request.
Where Do I Start?
Start by visiting the Maryland Business Express website. Begin by filing the Annual Report, which is REQUIRED for all domestic and foreign business entities formed, qualified, or registered to do business in Maryland.
As you answer the Annual Report prompts, the system will automatically identify whether a Personal Property Tax Return is required by asking the following questions:
- Does the business own, lease, or use personal property located in Maryland? See section lll (page 4) for a list of what is considered personal property.
- Does the business maintain a trader’s license with a local unit of government in Maryland?
If you answer ‘Yes’ to either of the above questions, you MUST ALSO FILE a Personal Property Tax Return at the same time.
IMPORTANT: Proposed Legislation Doesn’t Affect 2022 Filings
You may be aware that legislation has been submitted to amend Maryland’s Annual Report fee structure to be more competitive with those of neighboring states and incentivize online filing. Regardless of the legislation’s outcome, all 2022 filing fees are due this year.
How much is the 2022 Annual Report Filing Fee?
The fee for most domestic and foreign entities is $300 (plus a small charge for filing online). If you do not file/pay by the April 15 deadline or request an extension, late fees may apply.
What if I’m Not in Good Standing?
Failing to file required annual reports and/or maintain compliance with any applicable Maryland laws may mean your entity is “Not in Good Standing,” which eventually leads to forfeiture. A forfeited entity may not legally conduct business in the state.
The Department of Assessments and Taxation has compiled this easy-to-use checklist to ensure whether or not your business is in Good Standing, and if not, how to bring it back into compliance. The most common reasons that a business is not in good standing are:
- A missing Annual Report and/or Personal Property Tax Return. Eligible businesses are now able to file Annual Reports and Personal Property Tax Returns for current and previous years online using Maryland Business Express;
- A monetary penalty resulting from the late filing of an Annual Report or Personal Property Tax Return, which can be paid on the business’ online profile;
- An issue with the Maryland Office of the Comptroller;
- An issue with the Maryland Department of Labor;
- A check or other form of payment that was dishonored; or
- Not having an active resident agent. Businesses can easily submit a Resolution to change their Resident Agent online using Maryland Business Express.
Questions about Good Standing Status?
If you have any questions about your business status, email SDAT.PersProp@Maryland.gov or make an appointment with a MWBC Business Consultant by calling (301) 315-8091.
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