Maryland S Corporations
Maryland recognizes S corporations. An S corporation in Maryland enjoys pass-through taxation for shareholders. Maryland taxes S corporations to the extent they have nonresident members. Income allocable to nonresident shareholders who are individuals is taxed at 7.5%. Income allocable to nonresident shareholder entities is taxed at 8.25%.
You can start an S corporation in Maryland by forming an LLC or corporation. Then elect S corporation status from the IRS when applying for your EIN. An S corporation is an IRS tax classification, not a business structure.
To form an S-corp in Maryland, file articles of incorporation with the Maryland Department of Assessments and Taxation. This costs $100 plus $10 per officer listed. You may need a business license depending on your business type. Contact local government for more information.
As an S corp in Maryland, you must file a separate tax return. You generally pay state income tax, corporate franchise tax, and personal property tax. The tax due date is April 15. Maryland S corporation shareholders have limited liability protection. An S corporation is legally an individual entity separate from shareholders. This protects shareholders’ personal assets.
Registering an S Corp in Maryland
To create S-Corp in Maryland, you must follow the below guidelines:
- Form a business name
- Hire a Resident Agent
- File your Articles of Organization
- Create an operating agreement
- Request an EIN
- File a form 2553
If you want an S corp status for your business, forming an LLC can protect your personal assets from business debts. Selecting a unique and distinguishable name for your S Corp in Maryland is crucial for branding and legal purposes. You can use the Maryland Business Express database to search for name availability.
We recommend using a professional formation service to get your S corp up and running in no time. Protection of shareholders’ personal assets is one of the major reasons Maryland business owners choose to incorporate.
Maryland has a corporation income tax, but no franchise or privilege tax generally applicable to businesses. All corporations doing business in Maryland must also file an annual report with a $300 filing fee.
Tax Considerations and State Recognition of S Corps
In Maryland, business entities such as S corporations, partnerships, and limited liability companies (LLCs) file as pass-through entities using Form 510 Maryland Pass-Through Entity Income Tax Return.[1] S corporations in Maryland have to pay the annual franchise tax.
DC does not recognize the federal S corporation election. The S corporation will be an S corporation for federal tax purposes, not for state tax purposes. DC state income tax rates apply to C corporations and S corporations.
The Emotional Spectrum
The Emotional Spectrum represents emotions harnessed by Lantern Corps. Red Lantern Corps harness rage, fueled by their red power rings. The Green Lantern Corps replaced predecessors. Their “execution” of Sinestro caused the destruction of the Central Battery.
White Lantern rings act differently than other corps. Deadman regrew a forest and resurrected a bird. That seemed due to The Entity.
Tax Reporting
In general, you don’t issue 1099-NEC forms to C-Corporations and S-Corporations. But there are exceptions, including medical and health care payments.