Why incorporate in Maryland?

Business Information & Rankings

• Maryland ranked 4th on the State Technology and Science Index (Milken Institute, 2004).
• Maryland ranked as the 2nd friendliest state for black businesses and 1st in the percentage of black-owned businesses in the general business population. (Black Money Worldwide, 2004)
• Maryland has the 5th highest concentration of technology jobs nationwide, employing 78 of every 1,000 private sector workers (Cyberstates, 2005)

Cost of Living Index

Crime Rate

Maryland has the 32nd lowest crime ranking in the U.S. (F.B.I., 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is exempt.

Corporate Income Tax
Maryland’s corporate tax structure consists of a flat rate of 7% on all corporate income.

Personal Income Tax
Maryland’s personal income tax system consists of four separate brackets with a top rate of 4.75% starting at $3,000.

Personal Property Tax
Taxable. Maryland assesses an intangible property tax; however, most intangibles are exempt. Maryland is one of the 38 states that collect property taxes at both the state and local levels.

State Sales and Use Tax
Base Rate: 5.0%
Machinery Rate: None

There is a exemption for machinery or equipment, a replacement part of machinery or equipment, or a service for the assembly or fabrication of machinery or equipment or replacement part that is capitalized to claim depreciation, is not used in administration, management, sales, or any other non-operational activity, is used in a production activity, and is not installed so that it becomes real property.

Unemployment Insurance
Maryland’s new employers’ rate is 2.1% for 2 years.