You've created a strong business plan. Now, form your business with the Maryland Department of Assessments & Taxation (SDAT) to make it officially recognized.
Step 1 Form your Business in Maryland with SDAT
Online (Recommended)
- Use Maryland Business Express, our award-winning online portal
- Quickly and easily form most Maryland businesses and register out-of-state (foreign) businesses.
By Mail
- If unable to file online, find your correct document from the SDAT Forms Page and mail it with the filing fee (check or money order)
- Mail your documents to:
700 E. Pratt St., Suite 2700
Baltimore, MD 21202-6377
Your Business Identification Numbers
- When your business becomes active in Maryland, you will receive a special business ID number from SDAT.
- You may also need to register with other state, federal, and local agencies.
- Each agency may give you a different ID number that has its own use and purpose.
- The numbers may look alike, but they are not the same. Know the difference to avoid problems later.
Department Identification Number: SDAT
- Issued by SDAT when your business is formed.
- Identifies and tracks your business in Maryland government records.
- Needed when you file annual reports or other documents with SDAT.
- Starts with one of these letters: D, F, W, L, T, or Z.
- Ends with eight numbers.
Federal Employer Identification Number (FEIN): IRS
- Issued by the Internal Revenue Service (IRS).
- Used for federal taxes, bank accounts, and hiring employees.
Central Registration Number (CRN): Comptroller
- Issued by the Maryland Comptroller.
- Used for state tax filings.
Sole Proprietorships and General Partnerships
- Not separate legal entities like LLCs and corporations.
- Must still follow state and local licensing and tax rules.
- To open a business bank account, you must still get an SDAT ID number from Maryland Business Express.
What’s Next?
Congratulations! You finished the first required step for Maryland businesses. Here are the next steps most businesses will need to take:
-
Get a Federal Tax ID Number (FEIN) from the IRS
Identifies your business for federal taxes. -
Apply for Maryland Tax and Insurance Accounts
For state taxes and insurance accounts. -
Get Required Licenses and Permits
Your business may need one or more to operate. -
Purchase Business Insurance
Protect your business from risks and liability. -
Purchase Health Insurance
Get coverage for your business and employees.