Initial Fees and Licenses in Maryland

April 13, 2006

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If you're going to operate your business in Maryland, when you start up you're likely to incur filing fees and licensing fees depending on the type of business you run and your business form (corporation, sole proprietorship, partnership or limited liability company (LLC)).

Corporations. If you're doing business as a domestic corporation (a corporation incorporated in Maryland) in Maryland, you will be subject to the following fees when you start up. The following are requirements and payments by domestic corporations to the State Department of Assessments and Taxation:

The organization and capitalization fee for a domestic corporation is based on the amount of the total par value of your capital stock. This fee is due at time of incorporation or when you increase your corporation's amount of capital stock. (Capital stock is the total amount of stock authorized for issue by a corporation.)

Aggregate Par Value of Capital Stock	Fee
not over $100,000	$20
over $100,000, but not over 1,000,000	$20, plus $1 per each $5,000 (or fraction of $5,000) over $100,000
over $1,000,000, but not over $2,000,000	$200, plus $10 for each $100,000 (or fraction of $100,000) over $1,000,000
over $2,000,000, but not over $5,000,000	$300, plus $15 for each $500,000 (or fraction of $500,000) over $2,000,000
over $5,000,000	$390, plus $20 for each $1,000,000 (or fraction of $1,000,000) over $5,000,000

In addition to the capitalization fee that the state of Maryland charges a corporation, you will have to pay the fees according to the following schedule:

Document	Fee
articles of incorporation	$100
articles of amendment	$100
articles of share exchange	$100
articles of consolidation or merger	$100
articles of dissolution (including cost of publication)	$100
annual report for stock corporation	$300

If you're doing business as a foreign corporation (a corporation incorporated somewhere other than in Maryland) in Maryland, you will be subject to various initial fees when you start up. As a foreign corporation, you must also file certified copies of the corporation charter or certificate of incorporation to the State Department of Assessments and Taxation. The various fees are as follows:

Document	Fee
registration of name for a calendar year	$100
qualification to do intrastate business	$100
certified statement of amendment, merger, or dissolution	$25
annual report for stock corporation	$300

Limited liability companies (LLCs). If your company is either a domestic or foreign limited liability company (LLC), the following are some of the documents that you may have to file with the Maryland State Department of Assessments and Taxation:

Document	Fee
articles of organization	$100
registration of a foreign LLC	$100
certificates of correction (domestic)	$25
certificate of amendment (foreign)	$100
certificate of merger (foreign)	$25

Licenses and fees. Maryland requires that you obtain a license and pay a fee if you are operating certain types of businesses in the state. Below is a partial list of some of the types of businesses required to obtain a license. Be sure to check with the state to make certain that you are complying with the license requirements for your particular profession.