Form Your Maryland S Corporation
Incorporate in the Old Line State near Washington D.C., then elect S-corp status with the IRS for pass-through taxation and payroll-tax savings on distributions
Filed in Maryland
The Old Line State · MD
- State filing fee$120
- Processing timeOnline ~7-10 business days expedited included; standard mail 6-8 weeks
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$300/year (Form 1 + personal property return) — due April 15th annually
- State tax rate8.25% corporate income tax
- Expedited option7-14 business days (+$50)
Form your Maryland S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your Maryland S-Corp
Free formation means you pay only the $120 state filing fee. All core services are included at no extra charge.
Articles of Incorporation (then IRS Form 2553 for S-corp election) filing
We prepare and submit your Articles of Incorporation (then IRS Form 2553 for S-corp election) to the Maryland SDAT (State Department of Assessments and Taxation).
Registered agent
Required in Maryland — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in Maryland
Maryland's proximity to Washington D.C. makes it a prime base for S corporations serving the federal government, with a highly educated workforce across cybersecurity, biotech, and government contracting. While Maryland levies an 8.25% corporate income tax, an S corporation's pass-through structure routes profits to shareholders' personal returns and avoids entity-level double taxation, and the state imposes no franchise tax on the entity.
Pass-through taxation avoids the corporation-level double tax on profits
Payroll-tax savings: profit distributions beyond a reasonable W-2 salary skip self-employment tax
Strategic location near Washington D.C. and federal agencies
Highly educated workforce in government, cybersecurity, and biotech
No state franchise tax on the entity in Maryland
Access to federal government contracting opportunities
Liability protection of a Maryland corporation with small-business tax treatment
Expedited Maryland filing is included with online incorporation
Key features of a Maryland S-Corp
- S-corp is an IRS tax election (Form 2553), not a separate Maryland filing
- Pass-through taxation with payroll-tax savings on distributions
- Restricted to U.S. citizen/resident shareholders — foreign owners ineligible
- Proximity to Washington D.C. and federal contracting
- No state franchise tax on the entity in Maryland
Major industries in Maryland
Form your Maryland S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes Online ~7-10 business days expedited included; standard mail 6-8 weeks.
- 01
Name Your Maryland Corporation
Choose a name that includes 'Corporation,' 'Incorporated,' 'Company,' or an abbreviation, and confirm availability through the Maryland SDAT business name search.
- 02
Appoint a Resident Agent
Maryland requires a resident agent with a physical in-state address to accept legal documents on behalf of your corporation.
- 03
File Articles of Incorporation
Submit your Articles of Incorporation to the Maryland State Department of Assessments and Taxation (SDAT). The state filing fee is $120, and online filing includes expedited review.
- 04
Obtain an EIN
Apply for a free EIN from the IRS — it is required to file Form 2553, open a bank account, and run payroll.
- 05
Elect S-Corp Status with Form 2553
File IRS Form 2553 within 75 days of incorporation (or by March 15 for the current tax year) to elect S corporation taxation. All shareholders must sign.
- 06
Set a Reasonable Salary and File Annually
Pay shareholder-employees a reasonable W-2 salary via payroll, then file Maryland's Form 1 Annual Report and personal property return by April 15 ($300).
Maryland S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
Maryland S-Corp requirements checklist
Everything you need to form and maintain a Maryland S-Corp in 2026.
- Form a Maryland corporation by filing Articles of Incorporation with SDAT ($120)
- Appoint a resident agent with a physical Maryland address
- Obtain an EIN from the IRS
- File IRS Form 2553 to elect S-corp status within 75 days of formation
- Meet S-corp eligibility: 100 shareholders or fewer, U.S. citizens/residents only, one class of stock
- Pay shareholder-employees a reasonable W-2 salary before taking distributions
- File Maryland's Form 1 Annual Report and personal property return by April 15 ($300)
Filing information
- Formation document
- Articles of Incorporation (then IRS Form 2553 for S-corp election)
- Filing agency
- Maryland SDAT (State Department of Assessments and Taxation)
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $25 (30 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $120 Maryland state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Articles of Incorporation (then IRS Form 2553 for S-corp election) filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in Maryland)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
Maryland S-Corp questions, answered
Common questions about forming an S-Corp in Maryland. Can't find an answer? Talk to our team.
How do I form an S corporation in Maryland?
An S corporation is a federal tax election, not a separate Maryland entity. You first incorporate by filing Articles of Incorporation with the Maryland SDAT ($120), then file IRS Form 2553 to elect S-corp tax treatment.
How much does it cost to start an S corporation in Maryland?
The Maryland SDAT charges a $120 state filing fee for the Articles of Incorporation. The S-corp election itself (IRS Form 2553) is free. Ongoing, you'll file the Form 1 Annual Report and personal property return for $300 per year.
How long does Maryland take to process the incorporation?
Online filings through Maryland SDAT typically process in about 7-10 business days with expedited review included. Standard paper filings by mail can take 6-8 weeks.
When must I file Form 2553 to elect S-corp status?
File IRS Form 2553 within 75 days of incorporating, or by March 15 to have the election apply to the current tax year. Every shareholder must sign the form.
How does an S corporation save on taxes in Maryland?
An S corp is pass-through, so profits flow to shareholders' personal returns and avoid entity-level double tax. Shareholder-employees take a reasonable W-2 salary, and remaining profit distributions are not subject to self-employment tax. Maryland's 8.25% corporate income tax still applies to income taxed at the entity level, and state income tax applies to the pass-through income.
Who is eligible to be an S corporation shareholder?
An S corp can have no more than 100 shareholders, all of whom must be U.S. citizens or residents, and it may issue only one class of stock. Foreign owners are not eligible — if you have non-U.S. owners, a standard C corporation or LLC is the better fit.
Does a Maryland S corporation have to file a BOI report?
No. Under FinCEN's March 2025 interim final rule, U.S. domestic entities and U.S. persons are exempt from Beneficial Ownership Information reporting. Only foreign-formed entities registered to do business in a U.S. state still file.
What ongoing filings does a Maryland S corporation have?
You must file Maryland's Form 1 Annual Report and a business personal property return with SDAT by April 15 each year, with a $300 fee. You also run payroll for shareholder-employees and file the federal Form 1120-S.
Maryland government filing resources
Filing fees for common S-Corp services
Official Maryland state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
$25 reserves a corporate, LP, LLC or LLP name for an exclusive period of 30 days.
Certified copies of charter documents: $20 for the first certified copy plus $1 per page.
$5.00 per document for an apostille (Hague Convention countries) or certification.
S-Corp is a federal IRS election, not a separate Maryland entity — identical to the Maryland corporation.
Learn moreS-Corp is a federal IRS tax election (Form 2553), not a separate Maryland entity — identical to the Maryland corporation.
Learn moreEverything you need to run your Maryland S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your Maryland S-Corp?
Formation is free — you pay only the $120 Maryland state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in Online ~7-10 business days expedited included; standard mail 6-8 weeks.
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