How to Get a Certificate of Compliance in Maryland

A Maryland Certificate of Compliance is issued by the State Department of Assessments and Taxation (SDAT) to confirm that a foreign corporation, foreign limited partnership, foreign limited liability partnership, or foreign limited liability company has properly qualified or registered to do business in Maryland. It costs $20 and can be ordered online through Maryland Business Express or by mail. Before you order, confirm you actually need this document rather than a Certificate of Status, because the two are often confused and the Status certificate is what most lenders, licensing boards, and contracting agencies are really asking for.

Which Certificate You Actually Need

SDAT issues two closely related documents, and they are not interchangeable. A Certificate of Compliance is narrow: it applies only to foreign entities (those formed outside Maryland) and verifies that the entity has met Maryland’s qualification or registration requirements.¹ A Certificate of Status is broader: any Maryland or foreign entity registered with SDAT can request one, and it confirms the entity is in good standing with the state.

In practice, most people who go looking for a “Certificate of Compliance” are being asked by a bank, a licensing agency, or a title company for proof that their business is in good standing. That proof is the Certificate of Status, not the Certificate of Compliance. If the request letter or application you’re responding to uses phrases like “good standing” or “active and current,” you almost certainly need the Status certificate. If it specifically references your out-of-state entity’s authority to transact business in Maryland, the Compliance certificate is the right one. When in doubt, ask the party requesting the document which one they want on their letterhead.

Neither certificate is available for trade names, name reservations, sole proprietorships, government entities, or special entities such as public utilities.²

What You Have to Have in Order First

SDAT will not issue a Certificate of Compliance or a Certificate of Status unless your entity meets every criterion for good standing. The requirements are the same across most entity types:

All required annual reports and personal property returns have been filed.
All penalties imposed under Tax-Property Article §14-704 have been paid.
A resident agent is maintained in Maryland.
The charter has not been forfeited and the registration has not been rendered ineffective.³

Check your current status before you spend the $20. Maryland Business Express hosts a free Business Entity Search that shows your good standing status, filing history, and any overdue annual reports or personal property returns.⁴²¹

How to Order the Certificate

Once your entity is current, you have three routes:

Online through Maryland Business Express. Search for your entity by name or SDAT department ID and order the certificate through the portal. This is the fastest option.
By mail. Send a written request with a $20 check or money order payable to the State Department of Assessments and Taxation to the Corporate Charter Division at 700 East Pratt Street, 2nd Floor, Suite 2700, Baltimore, MD 21202.
Expedited processing. Add $20 to either method above for expedited service.

The certificate SDAT issues is an official document that can be presented to banks, licensing agencies, courts, and other state agencies as proof of your entity’s status.

Fixing Problems Before You Order

If the Business Entity Search shows you are not in good standing, the fix depends on how far behind you are.

Missed Annual Report

Every entity registered with SDAT must file a Form 1 Annual Report and Personal Property Return by April 15 each year. The filing fee is $300 for most entity types, including domestic and foreign stock corporations, LLCs, limited partnerships, and limited liability partnerships. Family farms pay $100.⁵ If you need more time, SDAT offers a two-month extension to June 15 if you request it through the online extension system before April 15.

Even if your tangible business personal property in Maryland has an original cost under $20,000 (which exempts it from property tax assessment), you still have to file the report and attest to that fact. Incomplete or inaccurate returns get rejected and are not treated as timely.⁶

Late Penalties

Late filing triggers a penalty starting at $30 for reports 1 to 15 days late, $40 for 16 to 30 days, and $50 for anything beyond that, calculated as one-tenth of one percent of your total county assessment up to a $500 cap. Two percent of that initial penalty is added for every 30-day period the report stays unfiled.⁷ All penalties must be paid before SDAT will restore good standing or issue a certificate.³

Forfeited Charter or Registration

If you’ve been out of compliance long enough, Maryland may have forfeited your entity’s right to do business. A forfeited entity cannot legally operate in the state, enter into contracts, or sue in Maryland courts in its own name.⁸ The warning notice is mailed, so an outdated resident agent address is a common way businesses discover forfeiture only after the fact.

Reinstating a forfeited limited partnership, LLC, or LLP generally requires filing all delinquent annual reports and personal property returns, paying any county or city personal property taxes owed, obtaining a tax clearance certificate from each relevant county or city (SDAT will not accept a receipt), and submitting a Certificate of Reinstatement with a $100 filing fee. Standard processing takes six to eight weeks. Expedited review in 7 to 10 business days adds $50; same-day service costs $325 online or $425 in person.⁹

Corporations use Articles of Revival instead, which must include the corporation’s name at the time of forfeiture, the name after revival, the principal office address, and the resident agent’s name and address.¹⁰ Any other issue that contributed to the forfeiture (such as unpaid taxes) also has to be resolved before SDAT will process the revival.

What the Certificate Is Used For

The reason you were asked for this document in the first place drives whether the Compliance or Status version satisfies the request. Common uses include:

License applications and renewals with Maryland professional and occupational boards.
Loan closings and other financing where the lender wants proof the borrower entity is active.
Bidding on government contracts.
Real estate settlements where a business entity is a party to the transaction.

Each of these stalls out until SDAT issues the certificate, and SDAT will not issue it while your entity is not in good standing.² If you have a closing or filing deadline, work backward from that date: pull the Business Entity Search first, resolve anything flagged, then order the certificate with expedited processing if timing is tight.

1
Maryland General Assembly. Maryland Code Corporations and Associations 1-203 – Recording, Filing, and Other Fees
2
Maryland Department of Assessments and Taxation. Certificate of Status
3
Legal Information Institute (Cornell Law School). Maryland Code of Regulations 18.04.03.01 – Criteria to Maintain Good Standing with the Department
4
Maryland Business Express. Maintain Good Standing Status
5
Maryland General Assembly. Maryland Code Corporations and Associations 1-203 – Recording, Filing, and Other Fees
6
Maryland Department of Assessments and Taxation. 2025 Business Entity Annual Report (Form 1) Instructions
7
Maryland General Assembly. Maryland Code Tax-Property 14-704
8
Maryland Department of Assessments and Taxation. What Does It Mean That a Business Entity Is Not in Good Standing
9
Maryland Department of Assessments and Taxation. Articles or Certificate of Reinstatement
10
Maryland General Assembly. Maryland Code Corporations and Associations 3-508