MARYLAND CORPORATION FOREIGN QUALIFICATION
What is Maryland Corporation Foreign Qualification?
explain
You want to do business in the state of Maryland but are registered as a Domestic Corporation in another state.
In order to legally conduct business in the state of Maryland you must register with the Maryland Department of Assessments and Taxation as
a
Foreign Corporation.
The process of registering as a Foreign Corporation in Maryland is called
Maryland Corporation Foreign Qualification.
The process of Maryland Corporation Foreign Qualification is similar to the process of forming a Domestic Corporation in Maryland.
Your original Domestic Corporation formation documents (usually called Articles of Incorporation) and By Laws apply to your Maryland Foreign Corporation.
The Officers and Directors of your Domestic Corporation have the same roles in the Maryland Foreign Corporation.
Specific requirements to qualify as a Foreign Corporation in Maryland are explained below.
Once you have made the decision to Qualify as a Foreign Corporation in Maryland,
a Maryland lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs - into your new Maryland Foreign Corporation.
What is a Maryland Foreign Corporation?
explain
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your Corporation is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a Corporation that is registered in California wants to do business in Maryland.
The California Corporation is a "Domestic" Corporation in California and will be a "Foreign" Corporation in Maryland.
The California Foreign Corporation needs to register with the Maryland Department of Assessments and Taxation as a Maryland Foreign Corporation.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign Corporation to be a Corporation that is registered outside
of the United States.
Do I need a lawyer to Form a Foreign Corporation in Maryland?
explain
The short answer is no.
The state of Maryland does not legally require a lawyer to form a
Maryland Foreign Corporation.
Our detailed
Foreign Corporation Information page may help you understand some
of the implications of forming a
Maryland Foreign Corporation.
However, if there is
anything about forming a Foreign Corporation in Maryland
that you're not sure about you should seek the advice of a competent Maryland lawyer, a Maryland accountant,
or both
before you form a Foreign Corporation in Maryland.
Once you have made the decision to form a Foreign Corporation in Maryland, a Maryland lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Maryland Foreign Corporation.
Do I have to Reserve a Company Name before I Form a Foreign Corporation in MD?
explain
You are not legally required to reserve a Company Name for a new Maryland Foreign Corporation before you submit your application to Form a Foreign Corporation
in Maryland.
The Foreign Corporation name that you have registered in your home state may or may not be available in Maryland.
In that case you need a different name your Maryland Foreign Corporation.
Whether or not you need to reserve a company name for your new Maryland Foreign Corporation depends entirely on your business situation.
The Maryland Department of Assessments and Taxation uses names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Maryland Foreign Corporation Name.
What if the Maryland Foreign Corporation Name I want is already taken?
explain
If the Name you have chosen for your new Maryland Foreign Corporation is already in use by a currently active
Maryland Foreign Corporation or LLC then you will have to register a DBA Name with the Maryland Department of Assessments and Taxation. "DBA" is an abbreviation for "Doing Business As."
We verify that the Name you have chose for your new Maryland Foreign Corporation is available before we submit
your Foreign Corporation filing to the Maryland Department of Assessments and Taxation.
If necessary we can register a DBA Name in Maryland for you so that you can open your new Maryland business as quickly as possible.
What do I have to do to Form a Foreign Corporation in Maryland?
explain
- Prove that you are registered in a state other than Maryland as a Domestic Corporation
In order to register as a Foreign Corporation in the state of Maryland, you must first prove that you are registered in another state as a
Domestic Corporation.
You prove this with a Certificate of Good Standing, sometimes referred to as a Certificate of Existence or a Certificate of Fact, from the
state in which you are registered as a Domestic Corporation.
Cost of a Good Standing Certificate for your Domestic Corporation varies from state to state.
If you already have a Good Standing Certificate from your home state, note that it must be dated no older than 30 days from the date of your application for
Maryland Corporation Foreign Qualification.
If the date on your Good Standing Certificate is older than 30 days then you need to get an updated certificate.
If you get your own Good Standing Certificate you must scan and email or send a copy to us before we submit your application for a
Maryland Foreign Corporation.
We can get your Good Standing Certificate from any state - in most states within 2-3 hours.
- Choose a name for your Maryland Foreign Corporation
You can use the same name in Maryland that you use in your home state, however, if the name of your Domestic Corporation is not available you need to choose another name.
Your Maryland Foreign Corporation name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Maryland Foreign Corporation name that you choose must be distinguishable from the name of any other registered Maryland Corporation or other
business entity and the name must also be different from any reserved names on record with the state of Maryland.
Your Maryland Foreign Corporation name must not imply that it was formed for a purpose other than that stated in the
Your Maryland Foreign Corporation name must not be a name that is likely to mislead the public.
The name of a Maryland Foreign Corporation must include the word "Foreign Corporation" or
"Incorporated" or an abbreviation of one of these words.
It's important to choose a good name for your Maryland Foreign Corporation because if you want to change it after you qualify you
will have to file amended documents with the Maryland Department of Assessments and Taxation (and pay a fee).
We will check to make sure that your requested Maryland Foreign Corporation name is available and conforms to all state of Maryland
Foreign Corporation naming regulations.
- Select an official address and a Registered Agent for your Maryland Foreign Corporation
Every Maryland Foreign Corporation must have an address that is physically located in the state of Maryland.
This address is "registered" with the Maryland Department of Assessments and Taxation.
The Registered Address cannot be a PO Box and is where official and legal correspondence can be delivered.
The individual or company that is registered with the state of Maryland to receive all correspondence on behalf of the Maryland
Foreign Corporation is called a "Registered Agent".
You may act as your own Registered Agent, however, many Maryland Foreign Corporations hire a Registered Agent because they don't have a physical
address within the state of Maryland or to provide a distinct level of privacy.
We provide Registered Agent services in Maryland as well as all other states and the District of Columbia.
- File Registration Documents with the Maryland Department of Assessments and Taxation
In order to Qualify as a Foreign Corporation in Maryland you must file Registration Documents with the Maryland Department of Assessments and Taxation.
In Maryland the registration documents are named "Foreign Corporation Qualification".
The registration documents must include certain specific information about your Maryland business.
If the Registration Documents do not conform exactly to state of Maryland requirements they will be rejected. 
If you need to change any of the information on your registration documents after your Maryland Foreign Corporation has been approved,
you may amend the registration documents for your Maryland Foreign Corporation but you will have to pay a fee to
the state of Maryland in order to make the changes official.
- Determine how you want your Maryland Foreign Corporation to be taxed
The Maryland Corporate Income Tax Rate is %.
You may choose that your Maryland Foreign Corporation to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Foreign Corporations.
You may choose to have your Maryland Foreign Corporation taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any Maryland Corporate Income Tax.
Maryland Corporations may be able to take advantage of several Maryland state tax credits.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Maryland Foreign Corporation and include it with
your final Foreign Corporation documents package.
What do I have to do after I Form a Foreign Corporation in Maryland?
explain
- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required reports for your Maryland Foreign Corporation
- Keep proper records of your Maryland Foreign Corporation on file
- Pay your taxes to the state of Maryland
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming a Maryland Foreign Corporation does not take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
A Maryland Foreign Corporation merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Maryland Foreign Corporation within Maryland you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your Maryland Foreign Corporation vary depending on your business activities
and the specific locations within the state of Maryland in which you want to conduct business.
If your Maryland Foreign Corporation will be selling products in Maryland you may be required to obtain a Reseller's Permit from the appropriate
Maryland state agency.
If your Maryland Foreign Corporation will be selling products in Maryland you will also be responsible for all applicable local and state of Maryland
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your Maryland Foreign Corporation
The Maryland Corporation Annual Personal Property Return includes basic information about your Maryland Foreign Corporation including information on your Officers and Directors.
Failure to submit a properly completed Maryland to the Maryland Department of Assessments and Taxation on or before the
due date may subject the Maryland Foreign Corporation to being administratively dissolved in the state of Maryland or having its authority to
transact business in the state of Maryland revoked by the Maryland Department of Assessments and Taxation.
Penalties may accrue if you fail to file any Maryland Foreign Corporation to the Maryland Department of Assessments and Taxation by the due date.
- Keep proper records of your Maryland Foreign Corporation on file
Keep the following records on file and available at the principal business office of your Maryland Foreign Corporation:
- Names and addresses of all Directors and Officers of the Maryland Foreign Corporation
- Foreign Corporation formation documents and any Amendments to them
- Corporate Bylaws and any Amendments to them
- List of current shareholders of the Foreign Maryland Foreign Corporation.
If shareholders change, keep a record of old shareholders and how stock was transferred.
- Minutes of all Meetings of Shareholders and Directors
- Copies of any Corporate Resolutions which have been adopted by the Maryland Foreign Corporation
- Copies of all tax returns and Annual Reports for the Maryland Foreign Corporation for the last 3 years
- Pay your taxes to the state of Maryland
Foreign Corporations that either do business in the state of Maryland or that derive income from sources within the state of Maryland are subject
to Maryland and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides Maryland, you must allocate the amount of income derived
from the state of Maryland in order to determine your Maryland state taxes.
What information do I need in order to Form a Foreign Corporation in Maryland?
explain
In order to Incorporate in Maryland you'll need the following information about your new Company:
- The name of your new Maryland Foreign Corporation along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign Corporation office in Maryland (not a PO Box)
- A good standing certificate for your Domestic Corporation from your home state no older that 30 days
- A description of the nature of the business you are planning to operate with the Maryland Foreign Corporation
- Names and addresses of the initial Directors of the Maryland Foreign Corporation
- Names and addresses of each Officer of the Maryland Foreign Corporation
Remember -
ALL the information that you provide when you Form a Foreign Corporation in Maryland becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign Corporation in Maryland.
How long does it take to Form a Foreign Corporation in Maryland?
explain
Processing times for new Maryland Foreign Corporation applications vary depending on the work load of the
Department of Assessments and Taxation's staff.
We've found that normal processing of new Maryland Foreign Corporation applications takes the state around 7-8 weeks.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new Maryland Foreign Corporation.
PLEASE NOTE: WE CANNOT GUARANTEE MARYLAND DEPARTMENT OF ASSESSMENTS AND TAXATION PROCESSING TIMES.
The Maryland Department of Assessments and Taxation reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the Maryland Department of Assessments and Taxation.
In our experience 7-8 weeks is the time it
usually takes the Maryland Department of Assessments and Taxation to process
a new Maryland Foreign Corporation application.
We get your Maryland Foreign Corporation application to the MD Department of Assessments and Taxation ASAP.
Once it is at the state we have no control over the new Maryland Foreign Corporation application process.
How much does it cost to Form a Foreign Corporation in Maryland?
explain
The state of Maryland charges $150.00 to Form a Foreign Corporation in MD. Also add the cost of a Good Standing Certificate from your home state.
If you choose us to help you Form your Foreign Corporation in Maryland our processing fees are $145.00.
This includes:
- Same day processing of your new Maryland Foreign Corporation order
- MD Name Check and Reservation
- Prepare Foreign Corporation Qualification
- File Formation Documents with the Maryland Department of Assessments and Taxation
- Certified Copies of Formation Documents
- Maryland Foreign Corporation Checklist
- Priority Mail Delivery
- Unlimited Customer Support
MARYLAND FOREIGN CORPORATION COST ESTIMATOR
Our Maryland
Foreign Corporation Services include:
(These services are included in our processing fees)
Optional Maryland
Foreign Corporation Services
(Choose options, cost is updated automatically)
-
Expedited Service - $70
explain
Normal processing time for a new Maryland Foreign Corporation is 7-8 weeks.
The Maryland Secretary of State will process your application for a new Maryland Corporation within seven business days for an additional $50.
This is the time by which the Maryland Department of Assessments and Taxation will either approve or deny the Foreign Corporation application.
Maryland Foreign Corporation applications must be received by the Department of Assessments and Taxation before noon Maryland time for the process to start that day.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut the document delivery time in half.
- Express Mail - $35
explain
If you really need your original approved Foreign Corporation Qualification in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Maryland Department of Assessments and Taxation's processing time. For the quickest turn-around time also choose the Expedited Service option.
-
S Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Maryland Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign Corporation documents pakage.
-
MD Registered Agent - $135
explain
Every Maryland Foreign Corporation is required to have an address within the state of Maryland where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Maryland to receive all correspondence
on behalf of the Foreign Corporation is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign Corporations hire a Registered Agent because they don't have a physical address within
Maryland or to provide a distinct level of privacy.
We can act as your Maryland Foreign Corporation Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your MD Registered Agent services.
-
MD Good Standing Certificate - $73
explain
A Maryland Good Standing Certficate is proof of the existence of your new Maryland Foreign Corporation.
The Certificate is issued by the Maryland Department of Assessments and Taxation and is proof that your MD Foreign Corporation is not behind on any
of its Maryland Department of Assessments and Taxation Corporate obligations.
A Maryland Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Maryland or in any other state.
We can get your Maryland Good Standing Certificate immediately after the Maryland Department of Assessments and Taxation has approved your Foreign Corporation filing.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Maryland Foreign Corporation.
We can get your FEIN on the same day that your Foreign Corporation Qualification are approved by the Maryland Department of Assessments and Taxation.
You can get your FEIN before your articles are approved by the Maryland Department of Assessments and Taxation but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign Corporation name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
-
Foreign Corporation Kit and Seal - $99
explain
While you're not required to have a Foreign Corporation Kit and Seal for your new Maryland Foreign Corporation they do come in handy.
The MD Foreign Corporation Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign Corporation Seal.
The Foreign Corporation Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Maryland Foreign Corporation record keeping.
-
Business License Research - $175
explain
Most new Maryland Foreign Corporations are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.
GOOD STANDING CERTIFICATE
You will need a Good Standing Certificate from your home state that is no older than 30 days.
Choose your home state from the list, the price of the certificate below will be updated automatically.