What are the taxation requirements for corporations?

Corporations in Maryland must pay taxes on income earned in the state. This applies to both foreign and domestic corporations. The corporations may be subject to certain state and local taxes, such as corporate income tax, franchise taxes, and personal property taxes. State corporate income tax is a tax on the net income of a corporation for the privilege of doing business in Maryland. Corporate income tax rates vary based on the taxable income of the corporation. All taxable income is subject to a minimum rate of 8.25%. Income in excess of $250,000 is taxed at a rate of 8.50%. Franchise taxes are imposed on corporations for the privilege of doing business in the state. Maryland imposes a flat rate franchise tax of $300 per year. Personal property taxes are based on the value of the property owned by the corporation. The rate of the tax varies depending on the county or municipal corporation. In addition to the taxes mentioned above, corporations in Maryland may also be subject to other taxes like gross receipts tax, unemployment insurance tax, and sales and use tax. All businesses must comply with applicable laws and applicable tax requirements. Proper legal and tax advice should be sought before engaging in any business activity.

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