How To Get A Maryland Business License (2024 Guide)

If you are going to be doing business in Maryland, then you will need a business license—but the requirements vary depending on what kind of business you own. Your county or city may also have its own regulations regarding business licenses.

Why Do You Need a Business License in Maryland?

A business license allows you to legally operate your business within Maryland’s borders. If you don’t have one, then you could be subject to fines and other penalties if caught. In addition, having a business license makes it easier for consumers to find out whether or not they can trust your company before doing business with you.

When Do You Need a Business License in Maryland?

In Maryland, when you need a business license depends on what kind of business you want to operate. You’ll want to get one if:

• You are selling goods or services to the public.
• You want to expand the scope of your current business. Whether you are opening a new location or just changing the way your current business operates, you may need to get permission from the state or your locality.
• You are operating a business in a location that requires permits or other authorization from the city or county government. For example, if you want to open up a bar and restaurant in Baltimore city, you’ll need an alcohol license from the Liquor License Board before being allowed to open for business.

Business licenses include local, state and federal licenses, as well as sales tax and other specific licenses for certain professions.

In some instances, your business may require state and/or Federal business licensing or permits to operate legally. If a federal agency regulates your business activities, you’ll need to apply for a federal license or permit by contacting the appropriate government department.

The requirements and fees for obtaining a license or permit are determined by the activities of your company and the department issuing the license or permit. It’s best to confirm the cost of a business license with the issuing agency.

Business types and industries that commonly require a license or permit include:

• Agriculture
• Alcoholic beverages
• Aviation, maritime or ground transportation and logistics
• Firearms, ammunition and explosives
• Fish and wildlife, including commercial fisheries
• Mining and drilling
• Nuclear energy
• Radio and television broadcasting

Some of these licenses and permits are only valid for a certain amount of time and would require renewing at the proper time.

Step 1. Name and form your company

Before you can get a Maryland business license you need to first name and form your company. That is if you have not already done so. If you have not, you will need to register with the state of Maryland.

In order to form a limited liability company (LLC) in Maryland, you must first file articles of organization with the State Department of Assessments and Taxation (SDAT). For service of process, you’ll also need to establish a registered agent in Maryland. Once you have begun a business, make sure you have your key business details in order and ready for beginning your Maryland business license applications. You will need:

• A business name
• An EIN (Employer Identification Number) or SSN (if you’re a sole proprietor)
• A business entity type (LLC, partnership, corporation, etc.)
• A business address and phone number
• Anticipated revenue and expenses
• A certificate of insurance (COI) for your business insurance policy

For step-by-step instructions, learn how to form an LLC.  Alternatively, you can outsource this step with the assistance of an LLC registration service. For help finding the right service for you, check out the best LLC services.

Step 2. Apply for a Maryland business license

Once you have gathered the necessary information, you’ll need to apply for Maryland business licenses.

You can search for and register for licenses and permits granted by state agencies through Maryland’s OneStop licensing system. For more specific inquiries concerning statewide licenses or the status of your license, contact the Division of Occupational and Professional Licensing.

Step 3. Determine which other local licenses may be applicable

The local Clerk of the Circuit Court can assist you with any local licensing needs, depending on where your firm is located. You can also contact the inspections, licenses or permits office in your county to determine other applicable local licenses.

Businesses that sell goods will need to obtain a trader’s license from the Clerk of Court before making any sales. You’ll need a different license if you operate a chain of stores or sell from a temporary location.

Step 4. Apply for any additional statewide license(s) you need

In addition to a trader’s license, any business that sells goods will need a sales tax permit. On the Comptroller of Maryland website, you can register online or print a sales and use tax permit application.

Step 5. Apply for federal licenses (as necessary)

Finally, though the federal government does not require or issue any general business operating licenses, you may be required to obtain licenses with specific government agencies depending on your business’s industry. Common industries requiring federal permitting include farming, fishing, firearms, alcohol sales and transportation.

The fees for your Maryland business licenses will vary depending on what type of business you have, how many licenses you need and the locality where your licenses are issued.

Trader’s license costs are calculated based on the wholesale worth of your retail goods. As the value of the goods rises, so do the fees. Currently, fees range from $15 to $800 ($2,125 in Baltimore city). For each type of license, a $2 issuance charge is usually included.

The Maryland trader’s license, which is valid for one year, runs from May 1 through April 30 of the following year. To process the renewal of your Maryland Business License, you’ll have to report to the local Clerk of the Court Office in the county where your firm is registered. You can also send a fax or email to the local Clerk of the Court Office to renew your Maryland business license. You’ll need to be current on business taxes before you can renew a license.