Starting a business in Maryland begins with a state filing. Unlike many states, Maryland does not use a Secretary of State for this step. Business formation is handled by the Maryland State Department of Assessments and Taxation, known as SDAT.
Who registers businesses in Maryland?
SDAT forms the entity. A business is formed by filing with SDAT, which makes it officially recognized by the state.
Where do you file?
Most filings are made online through Maryland Business Express, the state’s portal. It allows people to form most Maryland businesses and to register out-of-state (foreign) businesses that want to operate in Maryland. Nearly all charter and personal property filings can also be made online through its registrations and filings portal.
What can you do on the portal?
According to published guidance, the portal is used to:
- Register a business.
- Order business documents.
- File annual reports.
- File personal property tax returns.
What is the Department ID number?
SDAT issues a Department Identification Number when a business is formed. It identifies and tracks the business in Maryland government records and is needed when the business files annual reports or other documents. The number begins with one of the letters D, F, W, L, T or Z and ends with eight digits.
Can you check whether a name is already in use?
Yes. The Maryland business entity search is a free, official lookup tool on the Maryland Business Express portal. It returns a registered entity’s name, Department ID, status, resident agent, principal office address and filing history, and searching and viewing records costs nothing.
Steps to remember
| Step | What it involves |
|---|---|
| 1. Choose a structure | Decide what kind of entity you are forming |
| 2. Search the name | Use the free entity search on the portal |
| 3. File with SDAT | Submit your filing through Maryland Business Express |
| 4. Keep up filings | File annual reports and personal property returns on time |
Other things to check
Registration with SDAT is one part of starting a business. Depending on the work, a business may also need local licenses, tax registrations and other approvals, and employers should be aware of pay rules such as Maryland’s minimum wage and the state’s sales tax. Check with the relevant state and local agencies.
This article is general information, not legal or tax advice. Requirements and forms change, so check SDAT and Maryland Business Express for current details.
Sources: Maryland State Department of Assessments and Taxation; Maryland Business Express
