You may be asked to provide a certificate of status for your Maryland limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A Maryland certificate of status is relatively easy to obtain, but it does take some know-how.
What Is a Maryland Certificate of Status?
In Maryland, a certificate of status, known as a certificate of good standing in most states, verifies that your LLC complies with state regulations. The state will issue the certificate once you’ve met all deadlines and filed all relevant reports.
You’re not required to get a certificate of status in Maryland, but banks and creditors might request one, so it’s wise to have it on hand.
In What Situations Would I Need a Certificate of Status?
A bank or creditor might request a certificate of status as part of their due diligence and risk assessment when they apply for a business loan or business credit. This simply confirms your business has no outstanding regulatory issues.
In addition, if you expand your business to other states, you’ll have to register as a foreign LLC. In such cases, the new state may request a certificate of status from your home state.
Requirements to Obtain a Certificate of Status in Maryland
You must have a registered business entity in the state, either an LLC or a corporation. Sole proprietorships and partnerships do not register with the state, so they cannot obtain a certificate of status.
You’ll also need to be up to date on all Maryland business licenses, permits, and reporting requirements for your LLC or corporation in Maryland.
Which Department Issues Certificates of Status in Maryland?
In Maryland, the Department of Assessments and Taxation issues certificates of status. You can obtain one online through the Maryland Business Express website.
Search for your business, then click on the name to bring up your LLC’s information. Next, click “Options for this business” to view the dropdown menu and select “Certificate of status.”
The fee is $20, and, assuming your LLC is in full compliance, you should be able to access your certificate online immediately.
Alternatively, you can send a written request for the certificate, along with the $20 fee, to:
SDAT – Corporate Charter Division
301 W. Preston Street, Room 801
Baltimore, MD 21201