Registering a business in Maryland is only the beginning of your responsibilities with the state. Once your business has been established, certain filings need to be completed on an ongoing basis to keep the business in good standing.

One of the most important is the Maryland Annual Report.

Legal business entities registered to do business in Maryland generally must file an Annual Report with the Maryland State Department of Assessments and Taxation (SDAT) each year. For 2026, the filing is due April 15. Failing to complete required annual filings can cause a business to lose its good-standing status and eventually lead to forfeiture.

Here’s what Maryland business owners should know about the filing, including an area that often causes confusion: the difference between the Annual Report and the Business Personal Property Tax Return.

What Is the Maryland Annual Report?

The Maryland Annual Report, filed on Form 1, provides SDAT with current information about a registered business.

The current form requests information such as the legal business name, mailing address, Maryland Department ID number, Federal Employer Identification Number (FEIN), federal principal business code, nature of the business, trade name if applicable, and an email address. Certain sections of the form apply only to particular types of entities or circumstances.

The Annual Report is not the same thing as your federal or Maryland income tax return. It is an annual state filing used as part of maintaining the business’s registration and good-standing status with SDAT.

Even a business that had no revenue or had not yet begun operating may still have an Annual Report obligation. Maryland Business Express states that a business’s first Annual Report is due the year after it starts. For example, a business formed during 2026 would generally have its first Annual Report due in 2027.

When Is the Maryland Annual Report Due?

Maryland Annual Reports are generally due April 15 each year. For the 2026 filing year, businesses must file the report or request an extension by April 15, 2026.

Maryland allows businesses to request a 60-day extension. For 2026, an approved extension moves the filing deadline to June 15, 2026. The extension request itself must be submitted by the original April 15 deadline, and SDAT currently requires extension requests to be made online.

It’s worth remembering that an extension doesn’t eliminate the filing requirement. It simply provides additional time to complete it.

How Much Does a Maryland Annual Report Cost?

For 2026, the standard Annual Report filing fee for a domestic or foreign Maryland LLC is $300. The current Form 1 also lists a $300 fee for several other common for-profit entity types, including stock corporations, limited partnerships, and limited liability partnerships. Different fees or no fee apply to certain other entity types.

Because fees can change, business owners should verify the current amount on that year’s Form 1 before filing.

Some businesses may also qualify for an Annual Report fee waiver through MarylandSaves. Eligibility for that waiver has its own requirements and timing, so businesses should not assume they qualify simply because they participate in the program. SDAT currently directs employers to MarylandSaves to verify eligibility.

Annual Report vs. Personal Property Tax Return

This is probably the most important distinction for business owners to understand.

The Annual Report and Business Personal Property Tax Return are connected through Maryland’s filing process, but they serve different purposes.

A registered legal business entity may still need to file its Annual Report even when it does not need to complete a Business Personal Property Tax Return. Maryland’s current guidance for filing years 2023 and later generally requires a Personal Property Tax Return when a business owns, leases, or uses personal property located in Maryland, excluding licensed vehicles, and the total original cost of that personal property is $20,000 or more.

Business personal property can include items used to operate the business, such as furniture, fixtures, tools, machinery, equipment, and computer equipment. Maryland’s instructions also make clear that certain fully depreciated or expensed property can still be reportable for personal property purposes.

This is one reason business owners shouldn’t assume that an asset no longer matters simply because it has already been depreciated for income-tax or accounting purposes.

If you’re uncertain whether the Personal Property Tax Return applies to your business, Maryland Business Express can help during the electronic filing process. SDAT says the system uses the answers provided while completing the Annual Report to identify whether a Personal Property Tax Return is required.

Why Your Accounting Records Matter

For a business that is required to report personal property, the filing becomes much easier when its accounting records have been maintained properly throughout the year.

Maryland’s current Form 1 instructions require applicable property to be reported using information such as the original cost and year of acquisition. Depending on the business and property involved, the filing may also require information about assets that were purchased, transferred, disposed of, leased, or fully depreciated.

That information is much easier to produce when equipment and other business assets have been recorded correctly from the beginning.

For example, if a business purchases computers, machinery, furniture, or other equipment during the year, accurate bookkeeping can help establish what was purchased, when it was acquired, what it originally cost, and whether it is still owned by the business.

This is where bookkeeping becomes more than simply tracking income and expenses.

Maintaining organized records throughout the year can make annual filings easier and reduce the amount of time spent trying to reconstruct transactions months later.

How Do You File a Maryland Annual Report?

Maryland allows Annual Reports to be filed electronically through Maryland Business Express or submitted using the appropriate Form 1 and filing instructions.

SDAT encourages electronic filing, and Maryland Business Express can guide the business through both the Annual Report and, when applicable, the Personal Property Tax Return. For 2026, SDAT says an Annual Report submitted online is updated to a filed status on the business’s Maryland Business Express page the same day it is submitted.

File through Maryland Business Express

Before filing, it can help to have your business information and financial records available rather than trying to gather everything as you work through the form.

What Happens If You Don’t File?

Ignoring the Annual Report can create problems beyond simply having an overdue form.

Maryland requires the annual filing as part of maintaining a business’s good-standing status. Businesses that fail to complete required annual filings risk losing that status and may eventually have their registration forfeited. Maryland Business Express states that a forfeited business cannot legally operate in Maryland.

Importantly, simply stopping business operations does not necessarily eliminate outstanding filing obligations. SDAT explains that a business that has closed but has not formally completed the appropriate dissolution, cancellation, termination, or withdrawal process can continue to appear in its records and may still receive notices.

If you’re no longer operating a business, it’s better to properly address its status rather than simply stop filing.

Make the Annual Filing Easier on Yourself

The Annual Report is only filed once a year, but preparing for it shouldn’t begin in April.

Keeping your bookkeeping current throughout the year can make it much easier to identify equipment and other assets, verify transactions, locate purchase information, and provide accurate financial information when required.

A few simple habits can make a difference: keep business and personal transactions separate, save documentation for major purchases, record equipment and other assets correctly, reconcile your accounts regularly, and keep your accounting records up to date.

By the time annual filing season arrives, you should be reviewing organized records, not trying to rebuild an entire year of business activity.

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Conclusion

Maryland’s Annual Report is an ongoing responsibility that business owners shouldn’t overlook after the company has been established.

For most registered businesses, the key date to remember is April 15. Whether you also need to complete a Business Personal Property Tax Return depends on your business and the property it owns, leases, or uses.

Most importantly, don’t wait until the filing deadline to think about the records behind the report.

Keeping accurate bookkeeping and organized asset records throughout the year can make annual reporting much easier and help you maintain a clearer picture of your business at the same time.

For current forms, instructions, deadlines, and filing requirements, always check the latest information directly from the Maryland State Department of Assessments and Taxation before filing.