A Maryland certificate of good standing (MD) is a legal document that verifies that your limited liability company (LLC) or corporation was correctly formed and is in good standing with the state.
This Certificate of Good Standing Maryland guide will explain how to get a certificate of good standing in Maryland and the requirements to get a good standing certificate.
What is a Certificate of Good Standing?
The certificate- of good standing, aka “certificate of existence,” confirms that a company is up-to-date with its filings and has no legal issues preventing it from conducting business.
This state document verifies that you have legally formed your LLC or corporation and that your company is properly maintained.
Requirements for Getting a Maryland Certificate of Good Standing
In many states, the certificate of good standing is known as a certificate of compliance. In Maryland, it is called the certificate of status issued by the Maryland Department of Assessments and Taxation. To qualify for a Maryland certificate of compliance, make sure your corporation or LLC is up-to-date with the following state compliance requirements.
Obtain Business Licenses & Permits
Follow federal, state, and local licensing guidelines to operate your business in Maryland in a state-compliant manner. Some examples include health permits, building permits, medical and other professional licenses, etc.
To find more about state licensing requirements, visit the Maryland Department of Commerce website.
Pay State Taxes
Different businesses are subjected to different taxes such as Maryland Unemployment Insurance (UI) tax, withholding tax, or sales tax, etc. Depending on your business activity, you must register for various forms of Maryland state tax.
Timely Submit Annual Reports
All Maryland corporations and LLCs must file an annual report that summarizes their business’s finances over the past year.
The Maryland Department of Assessments and Taxation requires your business to submit an annual report. The Maryland LLC annual report filing fee is $300 and is due April 15 each year.
How Do I Get a Certificate of Good Standing in Maryland?
Once your business is up-to-date with all filings and compliance requirements, you can order your certificate of Good Standing from the state authority.
The Maryland certificate of compliance is requested from the Maryland Department of Assessments and Taxation. To order your certificate of compliance online from the Maryland Department of Assessments and Taxation using Maryland Business Express, click the following link.
You can also apply via mail or in-person by downloading the Maryland certificate of compliance using the following link:
SDAT – Corporate Charter Division
301 W. Preston Street, Room 801
Baltimore, MD 21201
The filing Cost for the Maryland Certificate of Compliance is $20 online and by mail, $40 in person.
Why Do I Need a Certificate of Good Standing in Maryland?
While you don’t necessarily need a certificate of compliance to run your LLC or corporation in Maryland, there are several instances where you may need to get one. These include:
- Opening a business bank account
- Applying for a business loan or line of credit from a bank
- Purchasing business insurance
- Trying to lease commercial space
- Soliciting funds from potential investors
- You want to register your LLC or other business in another state as a foreign or out-of-state LLC
- You want to Transfer or domesticate your business to another state
- You’re selling your business, and the buyer wants proof that the company is in good legal standing
- You are contracting with another company
- You need to show compliance with government regulations in any other situation
FAQs on Maryland Certificate of Good Standing
Aisha Noreen is an owner of a small business with more than 9 years of experience in the marketing industry. With the wisdom of an old soul, she always seeks innovation and mind-blowing ROI techniques. Her unique approach helped many small businesses thrive and she can surprise you in many ways as well. Believe it or not, her energy, passion, and creativity are contagious enough to transform your business and take it to another level.