BALTIMORE — Maryland business owners are being warned about official-looking letters demanding fees to maintain "good standing" status with the state - a real requirement, but these letters are fake.
They use official jargon, barcodes, real business entity numbers, and official titles to trick owners into believing they're legitimate. The scammers demand payments supposedly required under Maryland business laws.
Kevin Salazar, co-owner of SM Concrete, received one of these letters and initially paid the fee of $150, thinking he was maintaining his company's good standing status.
"It's like a full-time job on a regular basis just making sure you're in good standing, making sure everything's met, your licenses," Salazar said.
After previously missing a deadline that temporarily cost him his good standing status, Salazar was eager to avoid the same mistake.
"When I got the letter, I was just like, let me make sure I do it before I mess up again, and sent the money off," Salazar said.
But red flags appeared when another letter arrived two months later. "It caught me off guard, so I tried to call them. Their phone just rings and rings. It doesn't actually connect to nobody," Salazar said.
WMAR-2 News Mallory Sofastaii also tried calling the number, but no one answered.
Salazar then researched online. "I googled it online, the telephone number, email address, and it came back that it was fake," he said.
The Better Business Bureau of Greater Maryland confirms this is a widespread problem.
"Fifty scam reports from business owners in the past year, just since January of 2025. So, this is happening so frequently that there must be multiple people, multiple actors, participating in this scam," said Clay Campbell, Director of Marketing for the BBB of Greater Maryland.
Campbell explained why these scams are so profitable: "Our service area has 90,000 businesses. So if they're asking for $90-$125 from these businesses, and they get a small fraction of that, those people responding with that payment, they're making a lot of money."
The scammers target both new and established businesses. Salazar helped a friend set up a business that received a fraudulent letter within a month of opening.
"If he got it within a month of opening the company, I can just imagine how many people actually get that letter," Salazar said.
Maintaining good standing status is crucial - corporations and LLCs need it to legally operate in Maryland, or risk forfeiting their business license. But the legitimate process doesn't work how the scam letters claim.
"You do have to file paperwork with the state. Information about your business is required from the State Department of Assessments and Taxation (SDAT). It does require a small fee. It is not hundreds of dollars, it's a nominal fee," Campbell explained.
All business entities must submit an annual report and personal property tax return yearly to SDAT. This annual requirement creates opportunities for scammers.
Salazar, whose business has operated since 2008, warns fellow business owners: "SM Concrete has been around since 2008 so we're not new, and they hit us like three or four times with that letter. So it's not just new [businesses], it's everybody they're going after, and if somebody doesn't know what they're doing, they can get caught real quick."
The State Department of Assessments and Taxation offers a checklist to help business owners verify their good standing status and understand the legitimate steps required to maintain it. Click here for more information.
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