Terms Used In Maryland Code, CORPORATIONS AND ASSOCIATIONS 5-101

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
  • Statute: A law passed by a legislature.
(a) In this subtitle the following words have the meanings indicated.

(b) “Disqualified person” means an individual or entity that for any reason is or becomes ineligible under this subtitle to be issued stock by a professional corporation.

(c) “Foreign professional corporation” means a professional corporation organized under the laws of another state or a territory, possession, or district of the United States.

(d) “License” means any license, certification, certificate, registration, or other legal authorization required by statute as a condition precedent to the performance of a professional service in the State.

(e) “Licensing unit” means the board, agency, court, or other entity that licenses or otherwise legally authorizes the rendition of a professional service.

(f) “Professional corporation” means a corporation organized under this subtitle for the purpose of rendering professional services.

(g) (1) “Professional service” means a service that may lawfully be rendered only by a person licensed or otherwise authorized by a licensing unit in the State to render the service and that may not lawfully be rendered by a corporation under the Maryland General Corporation Law.

(2) “Professional service” includes, but is not limited to, a service provided by:

(i) An architect;

(ii) An attorney;

(iii) A certified public accountant;

(iv) A chiropractor;

(v) A dentist;

(vi) An osteopath;

(vii) A podiatrist;

(viii) A physician;

(ix) A professional engineer;

(x) A licensed real estate broker, licensed real estate salesperson, and licensed associate real estate broker;

(xi) A veterinarian;

(xii) A psychologist; and

(xiii) A physical therapist.

(h) “Qualified person” means an individual, professional corporation, or general partnership that is eligible under this Act to be issued stock by a professional corporation.