State guide · Maryland
Starting a Medical Practice in Maryland
What physicians need to know about Maryland's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Service Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Moderate
Top income tax
5.75% (state) + local 2.25%–3.2%
Min. franchise tax
None (Maryland Personal Property Return required)
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Maryland physicians may form a Professional Service Corporation under Md. Code, Corporations and Associations Title 5 or a Professional LLC under Title 4A. All shareholders or members must be licensed Maryland physicians.
Filing is with the Maryland State Department of Assessments and Taxation (SDAT).
- •Form a Professional Service Corporation or Professional LLC
- •All shareholders/members must be licensed Maryland physicians
- •File Articles of Incorporation or Articles of Organization with SDAT
- •File Annual Report and Personal Property Return with SDAT (typically due April 15)
Corporate Practice of Medicine
Maryland recognizes a moderate Corporate Practice of Medicine doctrine. Fee-splitting is prohibited.
Tax Considerations
Maryland has a graduated personal income tax with a top state rate of 5.75%, plus local (county) income taxes ranging from 2.25% to 3.2%. No franchise tax, but a Personal Property Return is required annually.
- •Top state personal income tax: 5.75%
- •County local income tax: 2.25%–3.2%
- •Annual Personal Property Return required
- •6% statewide sales tax
Maryland State Board of Physicians
Maryland does not require entity registration with the State Board of Physicians for general practices. Individual physicians are licensed.
- •No general entity registration required
- •All practicing physicians must hold an active Maryland medical license
Employment Law Considerations
Maryland has substantial employee protections. Maryland Healthy Working Families Act requires paid sick leave for employers with 15+ employees. Maryland Paid Family and Medical Leave (FAMLI) begins benefits in 2026.
- •Maryland Healthy Working Families Act: paid sick leave for employers with 15+ employees
- •Maryland FAMLI: contributions begin 2025, benefits 2026 (Verify schedule)
- •Maryland minimum wage rising to $15/hour
- •Pay transparency required on job postings (Maryland Equal Pay for Equal Work Act)
Official resources
Bookmark these official agency portals for Maryland entity formation, tax registration, and medical board information.
Looking for Maryland licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Maryland.
View Maryland licensing guide →Get the complete practice startup guide
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