How to Form a 501c3 Maryland Nonprofit Corporation
In Maryland, in order to form a 501c3 Nonprofit, you must first register your nonprofit
corporation at the state level. Once you’re a legal entity within the state, you
can proceed to obtaining 501c3 status by applying with the IRS—assuming your business
is formed for one of the acceptable 501c3 purposes: scientific, religious, charitable,
literary, or educational purposes, among a few others.
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Register your Nonprofit Corporation in Maryland
Your Nonprofit Articles will include, at minimum, the following:
- Name, and address of the Incorporator (the person who fills out the document)
- Business name as you wish it to be legally recorded
- Purpose for forming the business
- Street address of business
- The following statement: “The corporation has no authority to issue capital stock.”
- Registered Agent’s name and address
- List of directors
- Certain language the state and/or IRS will require in order to grant tax-exempt
Once placed on file by the Secretary of State, your organization becomes a legal
entity and is authorized to do business in the state of Maryland. If you intend
to form a 501c3 Nonprofit Corporation, you are now able to begin the tax-exempt
status application process with the IRS.
Applying for 501c3 Tax-Exempt Status from the IRS
There is a great deal of information the IRS will need about your business in order
to grant you tax-exempt status. Some of the information you can expect to provide
is as follows:
- Form 1023
- Articles of Incorporation, including specific 501c3 language
- Three years of donation estimates
- Detailed description of your business activities
- Three years of expense estimates
- Conflict of Interest form
- Information about any organization from which you are involved in fundraising or
- Depending on the amount of compensation they are to receive, a list of any independent
contractors or officers
- Copies of any leases or contracts with any of the above persons
This is by no means a comprehensive list of the information the IRS will require.
Depending on your intended business activity, you may be required to provide further
information or documentation.
When you use Click and Inc to file your 501c3, we make sure the required 501c3 language
is present in your state Articles of Incorporation from the very beginning. Learn
more about forming a 501c3 Nonprofit.
Further Responsibilities of a Maryland Nonprofit Corporation
All corporations in Maryland, whether nonprofit or for-profit, must submit a Statement
of Information within 90 days of filing. Future Statements of Information must be
In Maryland, nonprofit entities are taxable; until your corporation has formally
obtained tax-exempt status from the Franchise Tax Board, it will be responsible
for paying a minimum $800 franchise tax along with its annual return.
If any of the above information changes, you will need to
file an amendment to alert the state of those changes. Failure to do so
could result in the state being unable to contact you with valuable filing and renewal
notices, which may cause certain late fees to be incurred.
You will be required to obtain an Employee Identification Number, also known as
an EIN. The EIN is obtained through the IRS. It is best to check with the IRS or
a legal advisor to determine what other IRS requirements are present for a 501c3
Depending on your purpose and your local jurisdictions, you may be required to open
any number of Business Licenses at the state, county, or town level. Learn more
about our Business License
Services to streamline the process.
Maryland Startup Quicklinks
For information on other types of businesses in Maryland, please explore the links