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Overdue Annual Reports Can Now Be Filed Online

On Behalf of | May 15, 2019 | Maryland Legal Information

SDAT’s Maryland Business Express Begins Accepting Previous Year Filings Online

The Maryland Business Express (MBE) website of the State Department of Assessments and Taxation (SDAT) now allows for online filing of up to 10 years of overdue Annual Reports and Personal Property Tax Returns. This previously paper-based process will enable business owners to more quickly and easily regain good standing status.

For more information, click here or contact Fallon Patton for additional information and assistance at [email protected] or at 410-767-4884.

Businesses Can Now File Up to 10 Years of Overdue Annual Reports and Personal Property Tax Returns Online to Regain Good Standing Status

The Maryland Department of Assessments and Taxation (SDAT) has updated its award-winning Maryland Business Express (MBE) site to now allow online filing of up to 10 years of overdue Annual Reports and Personal Property Tax Returns. This previously paper-based process will enable business owners to more quickly and easily bring their entities into good standing status and maintain or regain the ability to legally conduct business in Maryland.

“Maryland is open for business, and SDAT is doing its part by making it easier and faster than ever for busy business owners to get back on a path to success after failing to submit a required filing,” said SDAT Director Michael Higgs. “We are continuously working to launch new online services to improve the support and guidance our department provides to Maryland’s hard-working business owners.”

Eligible Maryland businesses now have the ability to conveniently submit overdue annual filings for up to 10 previous years online. This was formerly a service that was only available by mail or in-person during standard operating hours, but is now available 24/7 and can even be completed on a mobile device. Once completed, businesses can pay for multiple filings with one online payment and will be notified by the Department if there are any additional steps that need to be taken to regain good standing status. If a customer starts to complete an Annual Report or Personal Property Tax Return, but leaves the filing in incomplete status, they will be emailed a reminder to finish the form before it is deleted.

All business entities formed, qualified, or registered to do business in Maryland must file an Annual Report every year. If your business owns, leases, or uses personal property in Maryland and/or maintains a trader’s license with a local unit of government in Maryland, you must also file a Personal Property Tax Return. If you do not file the required documents by the annual deadline on April 15, your business will fall out of good standing status and may eventually be forfeited. If a business is forfeited, it no longer has the authority to conduct business in Maryland and has no right to its name.

While failure to submit required annual filings is the most common reason why a business entity falls out of good standing status, there are several other requirements that an entity must comply with in order to remain in good standing in Maryland. As an aid to Maryland businesses that have fallen out of good standing and are facing forfeiture in October, SDAT has launched a Potential Domestic Forfeiture Search. This feature will allow customers to search the database using a Department ID number or entity name to determine the exact reason their business is not in good standing. With this information, customers can then take the necessary steps to resolving the issue and prevent forfeiture. If you have any additional questions about why your entity is facing forfeiture, please email [email protected].

SDAT strongly recommends that all business owners sign up for our email distribution list to receive timely reminders about filing these important documents by the required deadline.

SDAT Just Updated Its Business Entity Searched to Include Three Options

The Maryland State Department of Assessments and Taxation (SDAT) has updated its Business Entity Search to include three options:

  • “Business Name” is the name of your business, including any registered trade names.
  • “Department ID” is the 9-character identification number used by SDAT that begins with a letter, followed by 8 numbers.
  • “Employer Identification Number” (EIN), also known as a “Federal Employer Identification Number” (FEIN), is the 9-digit identification number commonly used by the U.S. Internal Revenue Service (IRS). Note, however, because some sole proprietorships’ and general partnerships’ EIN doubles as an individual’s social security number, those business types have been excluded from this search.

New Maryland Legislation Takes Effect

Resident Agent Legislation

Senate Bill 82 signed by Governor Hogan on April 10 is now effective as of October 1st and requires corporations, limited liability partnerships, limited partnerships, and statutory trusts to have “a” resident agent, rather than “at least one” resident agent, and it also alters the effective date of a resident agent’s resignation for these entities, as well as for limited liability corporations and foreign corporations, to reflect these entities having only one resident agent.

Repeal of Nonrefundable Processing Fee

Senate Bill 9 (Chapter 44) signed by Governor Hogan April 10th became effective October 1st and repeals a requirement that persons filing specified documents with SDAT pay a $5.00 nonrefundable processing fee to have their documents returned to them, post-filing and processing.

Additional changes and updates have occurred with SDAT’s online filing services. Please call the business attorneys at SLH (Colleen Helmlinger at 410-893-7500 or [email protected]) for further information and how these new laws may affect your current or future business entity.

Does Your Business License Need to Be Updated?

Whether starting a new business or expanding operations, getting licensing in order helps everything run more smoothly. And even though permits and registrations are critical for a new business, licensing needs exist throughout the life of a company and may be subject to renewal on an annual or alternate-timed basis.

Avoid paying fines by staying on top of business licensing requirements. CT Corporation provides a Checklist by CT professionals which offers popular events that could trigger a new business license need.

Get Business License Checklist

Please call the business attorneys at SLH (Colleen Helmlinger at 410-893-7500 or [email protected]) for further information about the licensing requirements of your business and how CT Corporation and SLH can assist you with the maintenance and renewal of such licenses.

Sales Tax Registrations

The Supreme Court’s landmark Wayfair decision will soon impact state sales tax collection requirements. This decision may have a potential impact on:

  • States
  • Remote/ Internet sellers
  • Brick-and-mortar sellers
  • Entrepreneurs

For example, after this decision, states are now allowed to require remote sellers to collect sales tax for the first time. Considering this, take time now to review your sales tax structure in Maryland and in all the jurisdictions where you do business.

Please call the business attorneys at SLH (Colleen Helmlinger at 410-893-7500 or [email protected]) for further guidance on whether your business is now required to register for sales tax reporting with the Comptroller and how CT Corporation and SLH can assist you with such registrations and updates.

Service companies like CT Corporation also provide service experts to help you keep your tax registrations compliant. Call CT Corporation at (855) 204-0488 to work out the next steps.