How to start a nonprofit in Maryland

How to start a nonprofit in Maryland, step by step

1. Name your Maryland nonprofit

   Maryland requires a corporate ending: Corporation, Incorporated, Limited, or Inc., Corp. or Ltd. The name must be distinguishable from every other entity on SDAT's records. A reservation costs $25.

2. Choose your first board of directors

   Plan on at least three people who are not related to each other. Some states allow fewer on paper, but three unrelated directors is what the IRS application works best with, and what funders expect. Pick people who will actually show up.

3. File your Articles of Incorporation (tax-exempt nonstock)

   File with the State Department of Assessments and Taxation, not the Secretary of State, using the tax-exempt nonstock form. The fee is $170: a $100 filing fee, a $20 organization and capitalization fee, and a $50 assessment for the Maryland Not-For-Profit Development Center Program Fund that applies only because you are seeking 501(c)(3), (4) or (6). A plain nonstock corporation pays $120. Expedited review in 7 to 10 business days adds $50; same-day service adds $325 online or $425 in person.

4. Name your resident agent

   Maryland calls it a resident agent, and the test is stricter than most states. The agent must be an adult citizen of Maryland or an existing Maryland corporation, at a Maryland street address that is not a post office box. A corporation cannot act as its own resident agent.

5. Adopt bylaws and hold your first board meeting

   Bylaws are your internal rulebook: how directors are chosen, how votes work, what officers you have. At the first meeting the board adopts them, elects officers, and approves opening a bank account. Keep minutes; they are your first governance record.

6. Get your free EIN

   It is free from the IRS; any site charging for an EIN is reselling a free thing. Apply online if your responsible party has an SSN or ITIN and your principal place of business is in the US. It takes minutes. Three limits to know: one EIN per responsible party per day, the tool is not open around the clock, and it times out after 15 minutes with nothing saved. Without an SSN or ITIN you file Form SS-4 by fax or mail instead, which takes weeks. You need the EIN for the bank account and every filing after this.

7. Apply for 501(c)(3) status with the IRS

   Two forms, two fees. The short Form 1023-EZ has a $275 user fee, but you may use it only if you clear the whole Eligibility Worksheet. That means three things. Gross receipts did not exceed $50,000 in any of the past three years. They are not projected to exceed $50,000 in any of the next three years. And total assets are $250,000 or less. Churches, schools, hospitals and a few other types cannot use it at all. Everyone else files the full Form 1023, $600. This is the step that makes donations tax-deductible. The IRS currently issues 80 percent of 1023-EZ decisions within about 22 days and 80 percent of full 1023 decisions within about 191 days. It publishes current figures on its status page. Fees read 1 September 2026.

8. Handle Maryland taxes

   Two agencies, two steps. For income tax, register with the Comptroller's Revenue Administration Division by sending a letter of request with a copy of your IRS determination letter; there is no form number for it, which is why founders miss it. For sales tax, apply on Maryland Tax Connect for a Sales and Use Tax Exemption Certificate, attaching your determination letter, articles and bylaws. Paper applications ended on 15 July 2025. Certificates renew every five years, with the next renewal period in May 2027.

9. Register to fundraise

   Register with the Secretary of State's Charitable Organizations Division through the OneStop portal, using Registration Statement COR-92. The fee is banded by charitable contributions: $0 under $25,000, $50 to $50,000, $75 to $75,000, $100 to $100,000, $200 to $500,000, and $300 above that. Under $25,000 you file an Exempt Organization Fund-Raising Notice instead, still a filing, still annual. Updates are due within six months of fiscal year end, with an automatic extension to the 15th day of the 11th month, and a $25 per month late fee.

10. Stay in good standing

    SDAT Form 1, the Annual Report and Business Personal Property Return, due April 15 every year. Nonstock corporations pay no fee, but the filing is not optional: property-tax-exempt entities are still required to file Form 1. If you file no personal property return with it, you are attesting that your Maryland personal property cost under $20,000.

Maryland-specific things to know

1. The $50 charity surcharge on formation

   Maryland charges tax-exempt nonstock corporations $50 more than plain nonstock corporations, as a Not-For-Profit Development Center Program Fund assessment. Choosing to be a charity costs extra at the state level before you have raised a dollar.

2. Three agencies, and one of them has no form

   SDAT handles incorporation and the annual return, the Secretary of State handles charity registration, and the Comptroller handles both taxes. The Comptroller step is a letter, not a form, so there is nothing to search for and it is the one people skip.

3. Form 1 at zero is still Form 1

   Owning nothing does not excuse you. Entities granted a property tax exemption still file Form 1 by April 15, every year, at no fee.

General information for people starting a nonprofit in Maryland, not legal or tax advice. Rules change and fees are updated; confirm specifics with the Maryland offices named on this page, the IRS, or a qualified professional before you file.

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Sources: SDAT articles of incorporation for a tax-exempt nonstock corporation; SDAT fee schedule; Maryland COR-92 registration statement; Comptroller of Maryland, nonprofits. Read 1 September 2026.