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Maryland Domestic Entity Certificate of Status (Good Standing)
A Certificate of Status for a domestic Maryland LLC or a domestic corporation is a “good standing” certificate that typically includes the following information:
- Entity name
- Entity type
- Formation or incorporation date
- Confirmation of filing of all annual reports required
- That the entity has no outstanding late filing penalties
- That the entity has a Maryland resident (registered) agent
- Confirmation that the entity is in good standing with the Maryland Department of Assessments and Taxation
Maryland Foreign Entity Certificate of Status (Good Standing)
A Certificate of Status (Good Standing) for a foreign LLC or corporation qualified to do business in the State of Maryland typically includes the following information:- Entity name
- Entity type (ex. LLC, corporation)
- State of organization (domestic state)
- Foreign qualification date
- Confirmation of filing of all annual reports required
- That the entity has no outstanding late filing penalties
- That the entity has a Maryland resident (registered) agent
- Confirmation that the entity is in good standing with the Maryland Department of Assessments and Taxation
Maryland (MD) Certificate of Good Standing (Status) FAQs
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What is a Maryland Certificate of Status or Good Standing?
A Maryland Certificate of Status is a “good standing” certificate issued by the Maryland Department of Assessments and Taxation. This document certifies that a business entity is in compliance with state requirements, including the filing of annual reports and payment of necessary fees. The Department will not issue the certificate to entities that have not filed all personal property returns, have unpaid penalties, or who have failed to maintain a resident (registered) agent.
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Why is “good standing” important for your business?
Being in good standing allows a corporation or LLC in Maryland to maintain the rights and privileges of doing business as that statutory entity. A company may need a good standing certificate when expanding to other states and may be required to submit proof of good standing for financing, business transactions, and licensing.
Consequences for loss of good standing status can include fines, the inability to file a lawsuit, and the inability to do business in other states. Not being in good standing can lead to a “forfeited” status, in which an entity may not legally conduct business in Maryland. A worst-case scenario is the administrative dissolution or termination of a business.
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When do I need a Maryland Certificate of Good Standing (Status)?
A Maryland Certificate of Good Standing (Status) is required when a business is looking to expand to another state (otherwise known as a foreign qualification). For example, a Maryland LLC wishing to do business in North Carolina would need to furnish a Certificate of Good Standing (or its equivalent) in order to register as a foreign LLC in North Carolina.
In addition, lenders, investors, and vendors often require a Certificate of Good Standing before doing business with a company. You may need to submit this certificate to obtain the needed licenses. You may also need a Certificate of Good Standing for other business transactions, such as a merger or acquisition. A certificate serves as evidence to the buyer that a company has made all necessary state tax payments.
A Certificate of Good Standing (Status) is not a formation or incorporation requirement for a business wishing to form a new LLC or corporation in Maryland.
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How to get a Certificate of Good Standing (Status) in Maryland?You can order a Certificate of Good Standing (Status) online today from CT Corporation or contact us for additional information.
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*State fees are mandatory fees imposed by the state. Price includes online discount automatically applied at checkout. Discount is for new customers only.