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Keep your business in Good Standing by completing the required annual filings.

Keep Your Business in Good Standing

To keep your business in Good Standing with Maryland, you must:

  • File your annual reports every year.
  • Follow all Maryland business laws.
  • Pay all required fees.

Why This Matters
If your business is not in Good Standing and its status is not fixed, the state will shut it down — this is called forfeiture. A forfeited business cannot legally operate in Maryland.

Required Annual Filings

You will need to file an Annual Report to keep your business active and in Good Standing, and/or a Personal Property Tax Return every year, depending on your business type and situation. Here’s what you need to know:

For LLCs and Corporations
You must file a Personal Property Tax Return if:

  • For Filing Years 2023 and after:
    • Your business owns, leases, or uses personal property located in Maryland (excluding licensed vehicles) and
    • The total original cost of personal property is $20,000 or more.
  • For Filing Years Before 2023:
    • Your business owns, leases, or uses personal property located in Maryland or
    • Requires a trader’s license (for retail sales) or another license from a local government.

For Sole Proprietorships
You must file a Personal Property Tax Return if:

  • For Filing Years 2023 and after:
    • Your business owns, leases, or uses personal property located in Maryland (excluding licensed vehicles) and
    • The total original cost of personal property is $20,000 or more.
  • For Filing Years Before 2023:
    • Not all of your business’s personal property is at your main home and
    • The total original cost of all property is more than $10,000 (excluding licensed vehicles).

When Is Your First Filing Due?
Your first filing is due the year after you start your business.

Example: If you form your business at any time in 2024, your first Annual Report is due by April 15, 2025, even if:

  • Your business had no revenue in 2024.
  • Your business has not yet started operating.
  • You are the only employee.

How Can I File My Annual Report or Personal Property Tax Return?
The fastest and easiest way to file your annual reports, register a business, or request document copies is through the Maryland Business Express.

Who Cannot File Online? Some business types cannot file their Annual Report or Personal Property Tax Return online and must use paper forms instead. You cannot file online if you are a(n):

  • Government Entity
  • Financial Institution (Includes credit unions, banks, savings banks, savings & loan companies, and trust companies)
  • Co-operative (non-stock)
  • Unincorporated Rental Property Owner in Worcester County/Ocean City
  • Public Utility
  • Cable Provider

Business Not in Good Standing

What ‘Not in Good Standing’ Means
A business is ‘Not in Good Standing’ when it has not met the criteria set by Maryland law. You must fix any compliance violations to be in Good Standing.

Good Standing Checklist
The Maryland Department of Assessments and Taxation (SDAT) provides a simple checklist to confirm your Active and Good Standing status and help you take steps to resolve any issues.

Check Your Business Status
You can use the Business Entity Search to verify your business standing. Your business information will be displayed under the following tabs:

General Information

Filing History

  • Lists out any documents filed on behalf of the business.
  • Shows actions taken against your business by other state agencies. If there is an action listed, contact that agency for more information.

Annual Report/Personal Property

  • Indicates if all required annual reports were filed and whether you owe any late fees.

Common Reasons a Business Is Not in Good Standing
A business may not be in Good Standing for several reasons:

  • Missing an Annual Report or Personal Property Tax Return.
  • Late filing penalties (fees from late reports can be paid through the business’s online profile.)
  • Issues with the Maryland Office of the Comptroller and/or Maryland Department of Labor.
  • Dishonored payment (a check or other payment was not accepted by the financial institution).
  • No active resident agent (businesses can submit a Resolution to change their Resident Agent online via the Maryland Business Express. If there is no resident agent listed, you must file a resolution by paper with the required fee).

Contact for More Information

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