Summary
The fact that you may need to register with state agencies like Maryland Business Express is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Maryland, use this guide to:
- Explore the that triggers the need to register with the Maryland Business Express, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Maryland Business Express.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Maryland Business Express?
Factors indicating "doing business" in Maryland:
- Physical Presence: Maintaining an office, store, warehouse, or any other type of physical establishment in Maryland.
- Employees: Hiring employees based in Maryland who perform work within the state.
- Maryland-Based Income: Generating a significant portion of your revenue from customers or clients located in Maryland.
- Regular Activity: Consistently engaging in sales, providing services, or conducting other income-generating activities within the state.
Activities that Maryland might NOT consider "doing business":
- Isolated Transactions: Conducting a single or infrequent sale or project in Maryland without a pattern of ongoing activity.
- Owning Property: Simply owning real estate or investments in Maryland.
- Litigation: Defending or bringing legal action in Maryland.
- Attending Meetings: Participating in conferences or trade shows in the state.
Where do I register, and what else is required?
- A Certificate of Good Standing is required (dated within the past 60 days)
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Maryland. Here's a Maryland specific guide we put together.
What is the registration fee?
The fee charged by Maryland is $110.
How long does Maryland usually take to process?
Maryland usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Maryland's:
C-Corporation
- Filing Date: By March 1 of even-numbered years
- Filing Frequency: Biennial
LLC
- Filing Date: By April 1 of odd-numbered years
- Filing Frequency: Biennial
Non-Profit
- Filing Date: By April 1 of odd-numbered years.
- Filing Frequency: Biennial
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Maryland. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
