How to file a Maryland annual report

In Maryland, the annual report is officially known as the Form 1 Annual Report and Business Personal Property Return. It is a unique combined document that serves dual purposes, acting as both a standard annual report and a business personal property tax return. This sets Maryland apart from most other states, such as the Delaware annual report, where the annual report is filed separately from any property-tax-related return.

Filing this annual report is essential for maintaining your entity's good standing with the Maryland State Department of Assessments and Taxation (SDAT) and ensuring continued legal authorization to conduct business in the state. Per SDAT's Form 1 Instructions, filing is required regardless of whether the business owns property, generates income, or conducted business activity during the preceding year.

Who must file?

Maryland requires annual report filings from virtually all business entities operating within the state. Per the SDAT Form 1 Instructions, every entity formed, qualified, or registered to do business in Maryland as of January 1 of the filing year must file, including:

• Domestic and foreign corporations (stock, non-stock, religious, close, benefit, and professional)
• Domestic and foreign Limited Liability Companies (LLCs) and Benefit LLCs
• Foreign entities registered to do business in Maryland
• Limited partnerships (LPs), Limited Liability Partnerships (LLPs), and Limited Liability Limited Partnerships (LLLPs)
• Real Estate Investment Trusts (REITs) formed, qualified, or registered in Maryland as of January 1
• Business/statutory trusts, when required by SDAT policy (typically when they own or lease personal property in Maryland or need to maintain good standing; trust treatment is specialized and entities should confirm their obligations directly with SDAT)

Exemptions include:

• Sole proprietorships and general partnerships (unless they own business personal property, in which case they file Form 2)
• Entities that have been properly dissolved or removed from SDAT records before January 1
• Certain government entities, financial institutions, and public utilities may have modified filing requirements or are restricted to paper filing

Note that non-stock corporations (including most nonprofits and religious corporations) must still file Form 1, but their filing fee is $0. The fee exemption does not waive the filing obligation itself.

You do not have to file this report yourself, as Maryland gives you the option to leverage authorized filers. This can include:

• Business owners, officers, directors, or members of the entity
• Maryland registered agents with separate authorization under the entity's governing documents or a power of attorney
• Licensed attorneys or accountants representing the business
• Third-party service providers with proper authorization
• Any person authorized by the entity's articles of organization, operating agreement, or unanimous member consent to act on its behalf

Per the 2025 Form 1 Instructions, the report will be accepted with only one signature. All signers declare under penalty of perjury that the statements are true, correct, and complete.

How to file

Maryland offers multiple filing methods to accommodate different business needs, with online filing being the fastest and most efficient option for most entities. Here is the online filing process:

1. Access the Maryland Business Express portal
2. Create an account or log in using your email and phone number credentials
3. Select "Start a New Filing" and choose "File Annual Report/Personal Property Tax Return"
4. Enter your SDAT Department ID (a letter prefix corresponding to entity type followed by eight digits) and complete all required business information sections
5. Upload supporting documentation (PDF format) if your business has multiple locations
6. Review all information for accuracy before submission
7. Submit payment via the portal's accepted payment methods
8. Save the confirmation receipt for your records

According to the SDAT Charter and Legal FAQ, online filings are updated to "filed" status on the portal the same day as submission, while SDAT's internal processing takes up to 7 business days. Standard mail filings may take up to 6 weeks to process. Same-day rush processing is also available; see the filing fees section below for details.

If you prefer paper filing, take the following steps:

• Download Form 1 from the SDAT website and complete it electronically (handwritten forms are not accepted)
• Add an original signature and date by hand
• Mail a check or money order payable to "SDAT," including your Department ID on the check, to the Maryland Department of Assessments and Taxation
• Do not staple, fold, or send multiple entities in one envelope
• Note that the deadline is based on when SDAT receives your filing, not the postmark date

Due dates and deadlines

Maryland uses a uniform deadline system that applies consistently across all entity types, simplifying compliance management for businesses operating multiple entities.

The universal deadline is April 15 each year for all business entities. Per Tax-General Article § 1-201(b), if April 15 falls on a Saturday, Sunday, or Maryland legal holiday, the deadline automatically shifts to the next succeeding business day. Reports can be filed as early as January 1 for the current year.

Under Tax-Property Article § 14-704(c), SDAT may extend the filing deadline to June 15 if you request an extension electronically by April 15 through the SDAT extension portal. SDAT's current published instructions route all business entities to this online portal for extension requests; paper extension practices are limited and discouraged.

Filing fees

Maryland's fee structure varies by entity type and filing method. The SDAT Fee Schedule confirms the applicable rates, which are identical for 2025 and 2026 per the 2026 Annual Business Filings Press Release. All online payments through Maryland Business Express incur an additional electronic payment fee: 3% for credit card payments, or a small flat fee for eCheck payments.

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Required information

Maryland's Form 1 requires comprehensive information covering both standard annual report data and business personal property details, reflecting the state's unique combined filing approach. All entities must include:

• Business legal name (must match SDAT records exactly) and any trade names
• SDAT Department ID number (critical for processing)
• Federal Employer Identification Number (EIN); Social Security Numbers must not be used
• Principal office address and mailing address
• Registered agent name and complete address
• Federal Principal Business Code (6-digit NAICS code)
• Nature of business and total gross sales or business volume in Maryland
• Valid email address for SDAT correspondence

For entities owning, leasing, or using personal property in Maryland, the personal property return sections of Form 1 require:

• Original cost or acquisition price of property, broken out by year of acquisition
• Current physical location of the property within Maryland (P.O. boxes are not acceptable)
• Purchase dates and depreciation information
• Fully depreciated or expensed property must still be reported
• Entities with multiple Maryland locations should consult current Form 1 instructions, as SDAT may require or encourage electronic submission depending on the number of locations

One exemption applies here: under Tax-Property Article § 7-245 (effective July 1, 2022, for tax years beginning after December 31, 2021), personal property is not subject to valuation or taxation if the entity's total personal property statewide has an original cost of less than $20,000. Note that this is a personal property tax exemption, not a filing exemption. Entities whose total property falls below this threshold still must file Form 1; the instructions confirm that signing the annual report constitutes an attestation that the entity's total personal property in Maryland has an original cost of less than $20,000 if no personal property return is included.

The form requires varying information depending on your entity type. Corporations must provide:

• Names and addresses of all officers and directors (Section II of Form 1)
• Number of authorized shares and shares issued
• Statement of stock classifications, if applicable
• Federal tax identification details

LLCs are not required to list every member or manager on Form 1, but must generally identify at least one principal (such as a member or authorized person) in the officers/directors section. LLCs should follow the current Form 1 instructions for that section rather than skipping it.

Limited partnerships must provide:

• Names and addresses of general and limited partners
• Partnership management structure details
• Principal place of business information

Electronic signatures are accepted for online filings submitted through Maryland Business Express, as stated on the portal and in Form 1. Original wet-ink signatures are required for paper submissions.

Consequences of not filing

Maryland imposes escalating penalties for non-compliance with annual reports, with consequences becoming increasingly severe over time and potentially resulting in the complete loss of business operating authority. Per Tax-Property Article § 14-704, immediate consequences include:

• Late filing penalties: graduated minimums of $30 (1 to 15 days late), $40 (16 to 30 days late), or $50 (31 or more days late), with a statutory maximum of $500. The penalty is assessed at up to 1/10 of 1% of the total county assessment, so entities with substantial personal property may face penalties well above the minimums.
• Loss of good standing: an entity must have all annual reports filed and all penalties paid to maintain good standing, affecting certificates and public records
• Additional 2% penalty: accrues on the initial penalty amount for each 30-day period (or fraction thereof) the report remains unfiled, per Tax-Property Article § 14-704(a)(1)(ii)
• Public compliance issues: "Not in Good Standing" or "Forfeited" status appears on business records
• Professional license complications: difficulty renewing licenses that require good standing
• 17% CCU surcharge: per the SDAT Forfeiture FAQ, unpaid penalties may be referred to Maryland's Central Collection Unit; CCU standard practice is to add a 17% collection fee to referred debts (this surcharge derives from CCU collection policy, not from Tax-Property § 14-704 itself)

If you remain noncompliant, SDAT may administratively forfeit your entity's right to do business after the applicable notice and cure period under C&A § 3-503. For LLCs, C&A § 4A-911 governs the effect of forfeiture of the right to do business. Additional long-term consequences include:

• Complete forfeiture of the right to conduct business in Maryland
• Loss of legal name protection and exclusive use rights
• Indirect personal liability exposure for owners and officers, including criminal misdemeanor liability for knowingly operating a forfeited LLC (fine up to $500 per C&A § 4A-919)

To reinstate your entity, two pathways are available. For corporations, C&A § 3-504 provides that paying all taxes, interest, and penalties within 60 days of the forfeiture proclamation retroactively reinstates the entity as if forfeiture never occurred. LLCs and other entity types have analogous but not identical reinstatement provisions. If you miss the applicable cure window, formal reinstatement requires filing all delinquent annual reports (Maryland Business Express allows many past-due reports to be filed online in a single session; confirm the number of years available electronically on the portal at the time of filing), paying all accumulated penalties, interest, reinstatement fees, and any applicable CCU surcharges. You will also need to update registered agent information if changes have occurred and submit a formal reinstatement application (Articles of Revival for corporations, Articles of Reinstatement for LLCs, or Certificate of Reinstatement for LPs and LLPs) through SDAT.

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FAQs about Maryland's annual report

What should I do if my business information changes after I have filed?

Contact SDAT immediately to file an amendment if significant changes occur after submission. For minor changes, note them for inclusion in next year's filing. Changes to the registered agent require separate notification procedures beyond the annual report.

When can I obtain a good standing certificate after filing?

Maryland issues Certificates of Status (the official term for good standing certificates) for $20 through Maryland Business Express. To receive one, the entity must generally be in good standing with SDAT, which means a current resident agent on file, all required annual reports and personal property returns filed, and no unpaid taxes or penalties. Per the SDAT Certificate of Status page, standard processing timelines apply. Same-day rush processing is available at an additional $325 for eligible online submissions (submitted by 2:30 p.m.) or $425 for paper submissions (delivered to the dropbox by 10:00 a.m.).

Does Maryland offer multi-year filing options?

No, Maryland requires an annual filing by April 15 each year. There are no multi-year or biennial filing options, unlike some other states that offer extended filing periods.

Can I request an extension for my Maryland annual report?

Yes. Under Tax-Property Article § 14-704(c), SDAT may extend the filing deadline to June 15 if you request an extension electronically by April 15 through the SDAT extension portal. SDAT's current published instructions route all business entities to this online portal; paper extension practices are limited and discouraged.

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