Starting a nonprofit in Maryland

Incorporation

Filing

Articles of Incorporation for a Tax-Exempt Nonstock Corporation

Agency

Maryland State Department of Assessments and Taxation (SDAT)

State fee

$170 — never marked up by us

Processing

Routine mail processing runs 4–6 weeks; online filings via Maryland Business Express are reviewed in about 7–10 business days

Expedite

$50 (7–10 business day expedited review); $325 same-day online

Watch out

• The $170 total = $100 filing fee + $20 organization & capitalization fee + $50 assessment for corporations seeking 501(c)(3)/(4)/(6) status.
• Maryland is a rare state whose tax-exempt nonstock template includes suggested IRS purpose and dissolution language — but the sample text still needs completion and review before it satisfies the IRS.
• Maryland calls nonprofits 'nonstock corporations' — using the plain nonstock form (without the tax-exempt provisions) is a common DIY mistake.

Ongoing compliance

Registered agent

Called the 'resident agent'; must be a Maryland adult citizen or Maryland entity with a Maryland street address; the corporation cannot serve as its own agent.

Charitable registration

Required — Maryland Secretary of State, Charitable Organizations Division. Initial: $0–$300 (sliding scale based on charitable contributions). Renewal: Annual — update registration with financial report each year. Organizations raising under $25,000 without paid fundraisers file a simpler Exempt Organization Fund-Raising Notice instead of the full registration.

Annual report

Annual report (Form 1) due April 15 to SDAT — $0 for most nonstock corporations (business personal property can add a return requirement)

State tax exemption

Apply to the Comptroller of Maryland for a sales and use tax exemption certificate (renewed every 5 years); income tax exemption follows the IRS determination.