The Complete Guide to Maryland Business Licenses
Maryland does not issue one general business license. Instead, businesses may need one or more specific licenses — most commonly a trader's license from the Clerk of the Circuit Court — plus sales tax registration with the Comptroller and a professional license for regulated work.
Step 1: Form the LLC
File Articles of Organization through Maryland Business Express for $100 (+$50 expedited). Every LLC files a $300 annual report (Form 1) by April 15, which doubles as the personal property return. See the Maryland LLC guide for every formation step.
Step 2: Register with the Comptroller
Register through the Comptroller's Combined Registration Application (moving to Maryland Tax Connect). One application covers the Sales and Use Tax License — required before you make taxable sales; the rate is 6% — and employer withholding.
Step 3: Trader's license and other circuit court licenses
Businesses that sell goods at retail or wholesale generally need a trader's license from the Clerk of the Circuit Court in the county (or Baltimore City) where they operate. The fee depends on your average commercial inventory — from $15 at the low end up to $800 (higher in Baltimore City) — and the license year runs May 1 to April 30. The clerks also issue other business licenses for specific activities.
Step 4: Local requirements
Baltimore City licenses specific activities — such as pawnbrokers, towing, street vendors and secondhand dealers — through its Department of Consumer Protection and Business Licensing. Counties handle zoning, occupancy and health permits.
Step 5: Professional and contractor licenses
The Maryland Department of Labor's Division of Occupational and Professional Licensing oversees many trades and professions. Home improvement contractors must be licensed by the Maryland Home Improvement Commission.
Hiring staff and trade names
Employers register for withholding with the Comptroller and for unemployment insurance with the Department of Labor through BEACON. A trade name is filed with the State Department of Assessments and Taxation ($25).
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | SDAT (Maryland Business Express) | $100; $300 annual report |
| Sales and use tax license | Comptroller of Maryland | Combined Registration Application |
| Trader's license | Clerk of the Circuit Court | From $15, based on inventory |
| Home improvement / professional license | Department of Labor (MHIC and boards) | Varies |
| Trade name | SDAT | $25 |
Frequently Asked Questions
Does Maryland require a business license?
Maryland has no single general business license, but many businesses need a trader's license or another license from the Clerk of the Circuit Court, plus sales tax registration and any professional license their work requires.
How much is a trader's license in Maryland?
It depends on your average commercial inventory — from $15 at the low end up to $800, and higher in Baltimore City. The license year runs May 1 to April 30.
How do I get a Maryland sales tax license?
Register with the Comptroller of Maryland through the Combined Registration Application. The sales tax rate is 6%.
How much does it cost to form an LLC in Maryland?
The Articles of Organization cost $100, and every LLC files a $300 annual report by April 15.
Does a Maryland LLC need a business license?
Forming the LLC registers the company but is not a license to operate. Most LLCs that sell goods need a trader's license and sales tax registration, plus any professional license their work requires.