How much does it cost to start a nonprofit in Maryland?

The minimum cost is $375 — that's the $100 SDAT filing fee plus the $275 IRS Form 1023-EZ fee. If you file the full Form 1023, the total is $700. Optional costs include a registered agent ($100-300/year) and legal counsel.

Where do I file articles of incorporation for a nonprofit in Maryland?

File with the Maryland State Department of Assessments and Taxation (SDAT) at dat.maryland.gov. Online filing is available and the fee is $100. Processing takes 5-7 business days.

How many board members do I need for a nonprofit in Maryland?

Maryland requires a minimum of just 1 director for a nonprofit corporation. However, the IRS expects at least 3 unrelated board members for 501(c)(3) approval, and best practice is 5-15 members.

Does Maryland require a separate state tax exemption?

Yes. After receiving your federal 501(c)(3) determination, apply for Maryland state tax exemption through the Comptroller of Maryland at marylandtaxes.gov.

How to Start a Nonprofit in Maryland: 2026 Step-by-Step Guide

Maryland is home to over 30,000 registered nonprofits, from Baltimore neighborhood organizations to statewide health and education charities. The state's proximity to Washington, D.C. also makes it a hub for policy-focused and government-adjacent nonprofits.

This guide covers every step to start a nonprofit in Maryland — from filing with SDAT to getting your 501(c)(3) determination letter. For the general process that applies to every state, see our complete nonprofit startup guide.

Use our interactive Maryland startup tools to track your progress, calculate costs, and access direct links to every filing portal.

Maryland Nonprofit Quick Facts

Detail	Maryland
Filing agency	State Department of Assessments and Taxation (SDAT)
Incorporation fee	$100
Expedited processing	$50 additional
Online filing	Yes
Processing time	5-7 business days
Minimum board members	1 (state law) / 3 (IRS expectation)
Charitable solicitation	Required — Secretary of State, $0 fee
State tax exemption	Required — Comptroller of Maryland
Annual report fee	$0

Step 1: Define Your Mission and Name

Before filing anything, get clear on your nonprofit's purpose. Write a mission statement that describes who you serve, what problem you solve, and how you do it.

Check name availability: Search the SDAT business name database to confirm your name isn't already taken. Maryland requires that your nonprofit corporation name include "Inc.," "Incorporated," "Corporation," or "Corp."

Step 2: Recruit Your Board of Directors

Maryland law requires only 1 director, but the IRS expects at least 3 unrelated board members for a 501(c)(3) application. "Unrelated" means not family members or business partners.

Best practice is 5-15 members with a mix of skills: financial oversight, legal knowledge, fundraising experience, and programmatic expertise. See our Board of Directors guide for detailed requirements.

Step 3: File Articles of Incorporation with SDAT

File your articles of incorporation with the Maryland State Department of Assessments and Taxation (SDAT).

Filing options:

Online: Maryland Business Express — $100 fee, 5-7 business days
Expedited: Add $50 for faster processing
Mail: SDAT, 301 West Preston Street, Baltimore, MD 21201

Your articles must include:

Corporate name (with "Inc." or equivalent)
Purpose clause referencing Section 501(c)(3) of the Internal Revenue Code
Dissolution clause directing assets to another 501(c)(3) organization
Name and address of the registered agent in Maryland
Name and address of the incorporator

The purpose and dissolution clauses are critical. Without them, the IRS will reject your Form 1023 application. See our Articles of Incorporation guide for exact language.

Step 4: Adopt Bylaws and Governance Policies

After incorporation, formally adopt your bylaws at an organizational board meeting. Maryland doesn't require you to file bylaws with the state, but you must have them.

Your bylaws should cover board structure, officer roles, meeting procedures, quorum requirements, and the amendment process. Use our Bylaws Template as a starting point.

Also adopt a conflict of interest policy and a compensation policy — the IRS asks about both on Form 1023.

Step 5: Get Your EIN

Apply for an Employer Identification Number (EIN) with the IRS. This is free and instant online at irs.gov/ein. You need your EIN before opening a bank account or filing Form 1023.

See our step-by-step EIN guide.

Step 6: File IRS Form 1023 or 1023-EZ

This is the step that makes your nonprofit tax-exempt under Section 501(c)(3).

Form 1023-EZ: $275 fee, 2-4 week approval, for organizations with under $50,000/year in projected receipts
Full Form 1023: $600 fee, 3-6 month approval, for larger organizations

File within 27 months of incorporation to get retroactive tax-exempt status. Use our Form 1023 Checklist to make sure you have everything ready.

Step 7: Register for Charitable Solicitation

Maryland requires charitable solicitation registration with the Secretary of State's Office. The registration fee is $0, but you must register before soliciting donations.

What you'll need:

IRS determination letter (or proof of pending application)
Copies of your articles and bylaws
Financial statements
Names of officers and directors

Renew annually. Failure to register before fundraising can result in penalties.

Step 8: Apply for Maryland State Tax Exemption

Federal 501(c)(3) status does not automatically exempt you from Maryland state taxes. Apply separately through the Comptroller of Maryland for:

Maryland income tax exemption
Maryland sales and use tax exemption — allows you to purchase supplies without paying state sales tax

You'll need your IRS determination letter to apply.

Step 9: Set Up Operations

With your legal formation complete, set up the systems you need to operate:

Open a bank account using your EIN and articles of incorporation
Set up fund accounting — not QuickBooks, which can't handle restricted funds or Form 990 reporting
Configure your donor CRM to track gifts and generate tax receipts
Create a donation page to accept online gifts
Set up volunteer management if your programs involve volunteers

For a complete 90-day operations timeline, see our Setting Up a Nonprofit guide.

Maryland Nonprofit Cost Breakdown

Cost	Amount	Required?
SDAT incorporation fee	$100	Yes
Expedited processing	$50	Optional
IRS Form 1023-EZ	$275	Yes (or $600 for full 1023)
EIN	Free	Yes
Charitable solicitation registration	$0	Yes
State tax exemption application	Free	Yes
Annual report	$0	Yes
Registered agent (if not self-serving)	$100-300/year	Optional
Minimum total	$375

Maryland Nonprofit Resources

Maryland Nonprofits — statewide membership association offering training, advocacy, and Standards for Excellence certification
SDAT Business Express — online filing portal
Maryland Secretary of State — Charities — charitable solicitation registration
Comptroller of Maryland — state tax exemption applications

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