Every Maryland LLC must file an annual report with the State Department of Assessments and Taxation (SDAT) by April 15 each year and pay a $300 filing fee, whether or not the business earned income, did any work, or held property in the state.1Maryland General Assembly. Maryland Code Corporations and Associations 1-2032Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions The report is filed on Form 1, which combines the annual report with a personal property return. Miss the deadline and penalties start accruing; ignore it long enough and the state can forfeit your LLC’s right to operate.
The April 15 Deadline and Getting an Extension
Form 1 is due April 15. When April 15 falls on a weekend, the deadline moves to the following Monday, and a filing postmarked by close of business that day counts as timely.3Maryland Department of Assessments and Taxation. 2024 Instructions for Form 1 Annual Report and Business Personal Property Return
Need more time? SDAT grants a free two-month extension to June 15 through its online extension portal.4Maryland Department of Assessments and Taxation. Extension Request The request itself must be submitted on or before April 15, and there is no paper option. You can look up your business by Department ID, business name, or prior confirmation number.
Your first report is due the April after the year of formation. SDAT requires a report from every entity registered as of January 1 of the filing year,2Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions so an LLC formed on June 10, 2025 files its first report by April 15, 2026.
What You Need Before You Start
Have these ready:
- Your SDAT Department ID: a letter prefix (W for domestic LLCs, Z for foreign LLCs) followed by eight digits. It’s in your formation confirmation letter and in SDAT’s online Business Entity Search.5Maryland Business Express. Register Your Business in Maryland
- The principal office address where the LLC conducts business.
- The resident agent’s name and Maryland address. The agent must be a Maryland resident and at least 18 years old.6Maryland State Department of Assessments and Taxation. Charter Filing for Maryland Businesses FAQs
- Current names and addresses for members or managers.
One trap: the annual report cannot be used to change your resident agent or that agent’s address. That takes a separate resolution form filed with SDAT.6Maryland State Department of Assessments and Taxation. Charter Filing for Maryland Businesses FAQs Signing Form 1 is a declaration under penalty of perjury that the information is true and complete.2Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions
The Personal Property Section
Form 1 also asks about tangible business property located in Maryland as of January 1, meaning items like office furniture, equipment, machinery, signage, shelving, and inventory held for sale.2Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions You list each item at its original cost by acquisition year, and SDAT calculates assessed value from there.
Many small LLCs owe nothing on this side. If your total personal property statewide has an original cost under $20,000, it’s exempt from valuation and property tax entirely.2Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions You still file the annual report; you just skip the detailed property schedules. Other categories are exempt regardless of value:
- Aircraft
- Farming implements
- Most vehicles registered in Maryland
- Boats under 100 feet
- Customized computer software
- Intangible property such as patents, goodwill, and trademarks
If your LLC does report property above the $20,000 threshold, the assessed value feeds into a separate personal property tax bill from the county or city where the property sits on January 1. Rates vary by jurisdiction.2Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report Form 1 Instructions
How to File and Pay
The Maryland Business Express portal is the fastest route. Enter your Department ID, fill in the required fields, complete the personal property section if it applies, and pay by credit card or e-check. Online payments carry a 3% service fee on top of the $300 filing fee.7Maryland State Department of Assessments and Taxation. SDAT Corporate Charter Fee Schedule You’ll get a confirmation email, and Good Standing status typically updates within three to five business days.
You can also mail Form 1 with a $300 check or money order payable to the State Department of Assessments and Taxation to Business Services Unit, P.O. Box 17052, Baltimore, MD 21297-1052.8Maryland Department of Assessments and Taxation. 2026 Form 1 Annual Report and Business Personal Property Return Mailed filings take considerably longer to process, so if you’re near the deadline, file online.
The $300 fee is required regardless of activity or revenue, and SDAT will not accept the report without it.1Maryland General Assembly. Maryland Code Corporations and Associations 1-203 Any personal property tax that results from the filing is a separate bill from the local jurisdiction.
Late Filing Penalties
Filing after April 15, or after June 15 with an extension, triggers an initial penalty of one-tenth of 1% of your total county personal property assessment, with a floor and a ceiling:
- 1 to 15 days late: minimum $30
- 16 to 30 days late: minimum $40
- More than 30 days late: minimum $50
- Maximum initial penalty: $500
An additional 2% of that initial penalty accrues for every 30-day period, or fraction of one, that the report stays unfiled.9Maryland General Assembly. Maryland Code Tax Property 14-704 – Tax Penalty When Annual Report Not Submitted For an LLC with little or no assessed property, the dollar penalty stays small. The bigger risk is what happens to the LLC itself.
Losing Good Standing and Charter Forfeiture
Timely filing is what keeps the LLC in Good Standing. Lose that status and you can’t get a Certificate of Status, which banks, lenders, and government agencies routinely require before approving loans, contracts, or license renewals.10Maryland Business Express. Maintain Good Standing Status
Keep ignoring the requirement and SDAT eventually issues a forfeiture proclamation, stripping the LLC of the right to do business in Maryland and to use its name.11Justia. Maryland Code Corporations and Associations 4A-911 – Failure to Pay Taxes or Required Contributions Proclamation A forfeited LLC cannot initiate lawsuits or enter enforceable contracts. It can still be sued.
Restoring a Forfeited LLC
Reinstatement runs through SDAT and depends on whether you owe back reports and whether the LLC ever reported personal property.
First, identify every missing annual report and prepare them. If any of those reports show tangible personal property, the path is longer:
- Submit the personal property returns to SDAT for assessment.
- Take the assessments to the county or city where the property was located.
- Pay the personal property tax owed.
- Get a tax clearance certificate from that jurisdiction. A payment receipt is not a substitute.12Maryland State Department of Assessments and Taxation. Guide for Reinstatement of Maryland LPs LLCs and LLPs
If the LLC never reported personal property, prepare the missing reports and skip straight to the final step.
To finish, file Articles of Reinstatement with SDAT along with the delinquent reports (or the tax clearance certificate, if applicable) and a $100 filing fee for standard processing.13Maryland Department of Assessments and Taxation. Articles of Revival Guide Expedited processing is $150, with faster same-day options available for higher fees. If the forfeiture was caused by something other than missing reports, such as an unpaid penalty, resolve that separately before SDAT will process the reinstatement.12Maryland State Department of Assessments and Taxation. Guide for Reinstatement of Maryland LPs LLCs and LLPs