How to Get a Contractor License in Maryland: MHIC, Trade Boards and Local Licenses

If you plan to get paid for home improvement work in Maryland, the license you most likely need is a contractor license from the Maryland Home Improvement Commission (MHIC). Here is the part that trips up most first-time applicants: Maryland does not issue a single statewide general contractor license. MHIC covers residential home improvement work, the Department of Labor's trade boards cover specific trades such as electrical, plumbing and HVACR, and commercial general contracting runs through local building permits and county registrations. The license you need depends on what you build, where you build it and who you build it for.

This guide explains how the system fits together, what to gather before you apply, the steps to get licensed, and the mistakes that cause delays. It is informational content, not legal or tax advice. Talk with a Maryland construction attorney or a CPA before you take on complex work, especially if you are forming a new business, bidding commercial projects or dealing with a contract that spans several trades.

Start with the right agency

Maryland splits construction licensing across several agencies. Match your work to the correct one before you spend money on any application.

Type of work	Who licenses or registers it	What to know
Residential alteration, remodeling, repair or replacement of a home	Maryland Home Improvement Commission (MHIC), Maryland Department of Labor	Contractor and salesperson licenses. Covers a residence, including an individual condominium unit. Excludes commonly owned condominium areas and buildings with four or more units.
New home construction	Attorney General, Home Builder Registration Unit	An MHIC license does not cover new home construction. You must register with this unit.
Master electrician work	Board of Electricians, Department of Labor	A separate license from the MHIC license. Confirm the requirements with the board.
Master plumbing and gas fitting	Board of Plumbing, Department of Labor	A separate license from the MHIC license. Confirm the requirements with the board.
HVACR contracting	Board of HVACR, Department of Labor	A separate license from the MHIC license. Confirm the requirements with the board.
Commercial general contracting	Local building permits and county registrations	Confirm the exact registration and permit requirements with the county where the project is located.

For most homeowner-facing work, such as kitchens, baths, roofing, siding, decks and additions to an existing home, the MHIC contractor license is the starting point. If you do electrical, plumbing or HVAC work, you need the trade board license for that trade in addition to, or instead of, an MHIC license, depending on the job. Many projects involve more than one trade, so plan for each one separately.

Gather what you need before you apply

Missing paperwork is the most common reason an application sits idle. Gather these items before you start the online or paper application.

• Your legal business name and entity type. If you operate as an LLC, you file Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT), Charter Division. The filing fee is $100. A corporation files Articles of Incorporation for $120.
• A Maryland resident agent. Maryland calls the registered agent a resident agent. The agent may be a Maryland citizen over eighteen, a Maryland corporation or a Maryland LLC, and must have a Maryland street address. A P.O. box does not qualify. The agent must sign the Articles, and you must have the agent's consent before filing.
• A Maryland business address. Use a real street address for your business.
• Personal identification and contact details for every person who will be named on the license, including anyone who will sign contracts as a salesperson.
• Experience and examination records, if MHIC requires them for the license type you are applying for. Confirm the current requirements on the MHIC application before you plan your timeline.
• A payment method that covers the MHIC fees listed in the next section.

Step-by-step: how to get an MHIC contractor license

1. Confirm the license type and scope. Decide whether your work is residential home improvement under MHIC or new home construction, which requires registration with the Attorney General. Write down every trade you plan to perform. If you will personally perform electrical, plumbing, gas or HVAC work, check the separate trade board requirements now so the timeline does not stall later.
2. Form your business entity, if you are using one. Search the name on the SDAT entity search at egov.maryland.gov/businessexpress/entitysearch. Your name must not be misleadingly similar to another LLC, corporation, trade name, limited partnership or limited liability partnership on file with SDAT. It must include one of these endings: Limited Liability Company, L.L.C., LLC, L.C. or L C. If you need to hold a name while you prepare the paperwork, a name reservation costs $25 and lasts 30 days. The form is at dat.maryland.gov/sdat%20forms/name_reservation.pdf.
3. Choose a filing speed and file with SDAT. File through Maryland Business Express at egov.maryland.gov/businessexpress. Standard LLC filings are reviewed during the second calendar month after submission. Paper filings take about 8 weeks. Expedited review costs an extra $50 and takes 7 to 14 business days. Online rush service costs an extra $325 and is reviewed within 3 hours if you submit by 2:30 p.m. on a business day. Same-day paper drop box service costs an extra $425. Confirm current processing times on the SDAT site before you commit to a deadline.
4. Complete the MHIC application. Submit the contractor application through MHIC, which is part of the Maryland Department of Labor. Use the business name exactly as it appears on your SDAT filing. A mismatch between the license application and the SDAT record is a common reason for a return or delay.
5. Pay the MHIC fees. For a 2-year original contractor license, the fees are listed below. Confirm the amounts on the MHIC site before you pay, because fees can change.

Fee component (2-year original contractor license)	Amount
Application fee	$281.25
Guaranty Fund assessment	$100.00
Processing fee	$22.50
Total, if all three components apply	$403.75

6. Meet any exam or experience requirements. MHIC sets the requirements for your license type. Keep proof of your experience and any exam results with your application file. If you are missing a requirement, ask MHIC what will substitute for it before you pay the full fee set.
7. Check whether your salespeople need licenses. MHIC also licenses salespersons. Anyone who solicits or signs home improvement contracts on your behalf may need a salesperson license. Confirm which people on your team need one and get their applications in with yours.
8. Get permits for each job. A contractor license does not replace a building permit. Pull the permits required by the county or municipality where each project sits. Permit requirements vary by jurisdiction, so check with the local building department before work begins.
9. Register separately for new home construction. If you build new homes, register with the Attorney General's Home Builder Registration Unit. The MHIC license does not cover this work.
10. Calendar your renewals and state filings. Track the expiration date on your MHIC license and renew before it lapses. If you formed an LLC or corporation, the SDAT Annual Report and Business Personal Property Return (Form 1) is due April 15 each year. The fee is $300. If you need more time, request an extension at pprextensions.dat.maryland.gov.

Local licenses and permits

The local layer is where many contractors get surprised. A state license is necessary for many jobs, but it is not the only approval you may need.

Building permits. Most structural, electrical, plumbing and mechanical work requires a permit from the county or city building department where the job is located. The permit is issued per project, so budget time for the permit review on every job, not just once per year.

County registrations. Commercial general contracting is governed by local building permits and county registrations. Confirm the exact registration requirements with the county before you bid commercial work. Requirements can differ from one county to the next.

Trader's license. There is no single general state business license in Maryland. Most businesses that sell goods need a trader's license from the Clerk of the Circuit Court in their county. The license year runs May 1 through April 30. Growers and manufacturers are exempt. A free Sales and Use Tax License from the Comptroller of Maryland, obtained through the Combined Registration Application, is required before the Clerk will issue a trader's license. The Clerk will not issue one if you owe personal property tax or have missing SDAT filings. Many contractors sell services rather than goods, so confirm with the Clerk whether this applies to your business.

Sales tax. If any part of your work involves selling taxable goods, the state sales tax rate is 6%. Register through the Combined Registration Application on Maryland Business Express before you make taxable sales. Confirm how sales tax applies to your jobs with the Comptroller of Maryland.

Common mistakes to avoid

• Assuming one license covers every job. An MHIC license covers residential home improvement. It does not cover new home construction, and it does not authorize electrical, plumbing, gas or HVAC work.
• Assuming an MHIC license covers multi-unit buildings. The residential definition excludes commonly owned condominium areas and buildings with four or more units. Confirm the scope of any multi-unit project before you bid it.
• Skipping permits because you are licensed. A license and a permit are separate approvals. Unpermitted work can create problems for you and for the homeowner when the property is sold.
• Letting an unlicensed salesperson sign contracts. Check the salesperson rules before anyone on your team solicits or signs a home improvement contract.
• Mismatching names. The name on your SDAT filing, your MHIC application and your bank account should match. Mismatches slow approvals and can complicate payments.
• Forgetting the resident agent's consent. Get written consent from the resident agent before you file the Articles, and confirm the agent's Maryland address is current.
• Missing the April 15 annual report. The $300 SDAT annual report is due every April 15. Late compliance can create problems for your business and for other filings, including a trader's license.
• Using an outdated fee. Fees and processing times change. Check the current figure on the agency page before you send payment.

Tips to keep the process moving

• Apply with a complete file. Gather every document in the list above before you start, and keep copies of everything you submit.
• Use the same business name everywhere, from the SDAT filing to the MHIC application to your insurance and bank records.
• If your timeline is tight, compare the SDAT expedited options against the cost of a delayed job. The $50 expedited review and the $325 online rush are optional, and they only help if your paperwork is complete.
• Ask your county building department for its permit checklist before you bid, so the permit timeline is in your schedule from the start.
• If you are a first-time business owner, the Maryland Small Business Development Center (SBDC) Network at marylandsbdc.org offers free advising that can help you plan the filing order.

What a license can and cannot do for you

A valid license is designed to show that you have met the state's requirements for your trade. It may help you bid residential work, reassure homeowners that you are operating within the rules, and keep your records in order for permits and inspections. It does not guarantee that you will win a bid, that a job will go smoothly, or that a county will approve a permit on a particular timeline. Treat the license as one part of running a compliant business, not as a substitute for permits, insurance review and careful contracts.

Who to ask before you commit

This article is informational content, not legal or tax advice. Maryland construction law, business formation, tax treatment and licensing rules change, and your situation may differ from the examples above. Consult a qualified Maryland construction attorney before you sign a complex contract, and consult a CPA about how your entity, sales tax and income will be treated. For commercial projects, talk with the county building department before you bid.

Official resources

• Maryland State Department of Assessments and Taxation, Charter Division: dat.maryland.gov/businesses/Pages/default.aspx
• Maryland Business Express: egov.maryland.gov/businessexpress
• Maryland Comptroller: marylandcomptroller.gov
• Maryland Small Business Development Center Network: marylandsbdc.org
• Maryland Home Improvement Commission and the Department of Labor boards: find the current pages through the Maryland Department of Labor website