Every Maryland LLC, corporation, and partnership must file an SDAT Annual Report by April 15 every year — or risk losing Good Standing status and eventually the business entity itself. Here's what it is, what it costs, and what happens if you miss it.
The Maryland SDAT Annual Report is a yearly compliance filing required by the State Department of Assessments and Taxation (SDAT) for all business entities registered in Maryland. It is not an income tax return — it is a state compliance filing that keeps your business entity active and in "Good Standing" with Maryland.
The Annual Report confirms your business is still operating, updates your registered agent and principal office information, and — for most businesses — is filed on the same form as the Personal Property Tax Return. Both are due April 15 and submitted together through Maryland Business Express. For a full overview of all Maryland business filing obligations, see our Maryland Tax Guide.
Missing the Annual Report is not a minor oversight — it has real legal consequences for your business. Maryland takes compliance seriously, and the penalties for non-filing go well beyond a simple late fee.
All of the following entity types registered in Maryland are required to file an Annual Report every year:
Sole proprietors operating under their own legal name — without a registered trade name or business entity — are generally not required to file an Annual Report, though they may still have Personal Property Tax obligations.
The Annual Report filing fee varies by entity type. For 2026 the fees are:
The $300 fee is separate from any Personal Property Tax owed. A business that files its Annual Report with no assessable personal property still pays the $300 fee. There is no way to waive or reduce this fee — it is a flat annual charge for the privilege of maintaining a registered entity in Maryland.
April 15 each year, filed through Maryland Business Express at businessexpress.maryland.gov. There is no automatic extension available for the Annual Report — unlike income tax returns. If April 15 falls on a weekend or holiday, the deadline moves to the next business day.
This is where it gets serious. Missing the Annual Report triggers a cascade of consequences that gets worse the longer it goes unaddressed:
Your business is immediately placed in "Not Good Standing" status with SDAT. This status is publicly visible — anyone who looks up your business on the SDAT entity search will see it. Not Good Standing means:
After two consecutive years of non-filing, SDAT has the authority to forfeit your business entity. A forfeited LLC or corporation no longer legally exists in Maryland. The name becomes available for others to register, your liability protection disappears, and you may be personally liable for business debts incurred after forfeiture.
We regularly see clients who formed an LLC years ago, stopped filing Annual Reports when the business slowed down, and then discovered the entity was forfeited when they tried to sell an asset, apply for a loan, or reactivate the business. Reinstating a forfeited entity in Maryland is possible but involves back fees, penalties, and a reinstatement filing — all of which cost significantly more than simply staying current.
The Annual Report is filed online through Maryland Business Express at businessexpress.maryland.gov. Here is the step-by-step process:
The entire process takes 10 to 20 minutes for a straightforward filing. If your business has significant personal property or complex ownership changes, the filing may require more preparation.
You can verify your Maryland business entity status at any time through the SDAT Entity Search at egov.maryland.gov/BusinessExpress/EntitySearch. Search by your business name or SDAT entity number. The search results will show:
If your status shows anything other than Good Standing, contact us — the sooner you address it, the lower the cost to correct it.
These two filings are closely related but serve different purposes, and it's worth understanding the distinction:
For most businesses, both are filed on the same combined form — Form 1 — through Maryland Business Express in a single submission. But they are legally separate obligations with separate consequences for non-compliance. See our full guide on the Maryland Personal Property Tax Return for details on that filing specifically.
Every Maryland business entity is required to maintain a registered agent — a person or entity with a physical Maryland address who is authorized to receive legal documents and official state notices on behalf of the business. The registered agent's name and address must be kept current with SDAT and are updated as part of the Annual Report filing.
If your registered agent has changed — or if the address on file is no longer valid — update it immediately. SDAT and legal process servers will use the registered agent address on file, and an outdated address means you may miss important notices, including tax assessments, lawsuits, and compliance warnings.
If your business has already been forfeited by SDAT, reinstatement is possible but involves several steps and costs:
The total cost of reinstating a business that has been forfeited for several years can easily exceed $1,500 to $2,500 or more depending on how long the entity has been out of compliance. We handle reinstatements for clients and can calculate the total exposure before you commit to the process.
We file the Annual Report and Personal Property Tax Return for all business clients every April as part of our annual engagement. We track deadlines, maintain property records, and confirm Good Standing status after each filing. If you're a new client who has missed prior years or whose entity has been forfeited, we handle the catch-up and reinstatement process. Contact us to get started.
Yes. The Annual Report is a compliance filing, not an income-based filing. Whether your business was profitable, broke even, or had no activity at all, the Annual Report is required every year as long as the entity is registered in Maryland. The $300 fee applies regardless of revenue.
Yes. Each registered entity in Maryland requires its own Annual Report and $300 filing fee. If you have three LLCs, you file three Annual Reports and pay $900 in total filing fees. We track and file all entities for clients with multiple business structures.
Yes. The Annual Report includes a section to update your registered agent information. You can also file a separate Change of Resident Agent form with SDAT outside of the Annual Report cycle if you need to make the change mid-year.
If you want to formally dissolve your Maryland entity, you need to file Articles of Dissolution (for corporations) or Articles of Cancellation (for LLCs) with SDAT — and you must be in Good Standing to do so. Simply stopping operations and not filing Annual Reports does not dissolve the entity. The business will continue to accumulate Annual Report fees and penalties until it is formally dissolved or forfeited.
Roy Cogliandolo, CPA
Mercer Flanagan · Frederick, MD · Updated June 2026
We file this for every business client every April. If you're behind or your entity is showing Not Good Standing, we'll get you caught up quickly.
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