How to Get an MHIC Home Improvement Contractor License in Maryland

If you want to be paid for residential repair or remodeling work in Maryland, you will usually need a Maryland home improvement license from the Maryland Home Improvement Commission, known as the MHIC. The maryland mhic license is the state credential that lets you contract for covered residential work. This guide covers the MHIC license requirements, the MHIC license cost, and the MHIC license application process, using the Commission's published rules and fee schedule.

This article is informational content, not legal or tax advice. Fees and rules change, so confirm every figure with the Commission before you pay. If your situation is complex, such as multiple owners, a mix of trades, or a business that also builds new homes, talk with a Maryland attorney or CPA.

What the MHIC License Covers

The MHIC license covers home improvement work on residential property. Covered work includes residential repair, remodeling, painting, decks, driveways, patios, retaining walls, roofing, and solar installations on residential property.

The license does not cover everything that sounds like home work. Three exclusions catch applicants off guard:

• New home construction. Builders register with the Attorney General's Home Builder Registration Unit instead.
• Apartment buildings with four or more units. Work on these buildings is outside the home improvement license.
• Trade exemption. Licensed electricians, plumbers, and HVACR contractors acting within their trade are exempt from the MHIC contractor license under Business Regulation Article 8-301(c). The exemption covers trade work. It does not automatically cover other home improvement work you take on.

The statutory definition of home improvement in Business Regulation 8-101(g) sets no minimum job dollar amount. A small job is not automatically outside the license, so check the scope before you quote.

Materials and Documents to Gather First

Collect these items before you open the application. Missing documents are the most common reason an application stalls.

• Personal information for each owner or officer. Have identification details ready for every person the application asks you to list.
• Business entity records. If you will operate through an LLC, form it first with the State Department of Assessments and Taxation (SDAT). Articles of Organization carry a $100 filing fee. The name must include one of these: Limited Liability Company, L.L.C., LLC, L.C., or L C. Use the exact registered name on your application.
• A certificate of general liability insurance. The coverage must be at least $500,000 (see the insurance section below).
• A payment method for the application fee, the Guaranty Fund assessment, and the processing fee.
• A copy of the current fee schedule from the Commission's page at labor.maryland.gov, so you can check each line against the form.
• A list of your company locations, if you plan to operate from more than one.

MHIC License Requirements at a Glance

Requirement	What the rule says	Source
General liability insurance	At least $500,000, required of applicants and licensees	Business Regulation 8-302.1
Surety bond	Not required by the statute. Consumer protection runs through the Home Improvement Guaranty Fund.	Business Regulation Title 8
Guaranty Fund assessment	$100 on the original contractor license	Statute 8-404(a)
Examination	Administered through PSI. Fee not confirmed, see below.	Commission
Scope	Residential home improvement only. No new home construction or apartment buildings with four or more units.	Business Regulation Title 8

MHIC License Cost

The Commission's fee page lists the following amounts. The page does not state an effective date, so confirm that the figures are current before you pay.

Item	Amount
Original two-year contractor application fee	$281.25
Guaranty Fund assessment, original license	$100
Processing fee, original contractor license	$22.50
Renewal, two-year contractor application fee	$281.25
Guaranty Fund assessment, renewal	$175
Each additional company location	$281.25
Original salesperson license	$112.50, plus $22.50 processing
Salesperson renewal	$112.50
PSI examination fee	Not confirmed. Confirm with the Commission.

The three original contractor fees add up to $403.75 before you count exam, insurance, or entity formation costs. The two renewal items add up to $456.25.

Older guides may list $250 plus $125. Those figures come from a 2011 notice and are out of date. Do not budget with them.

How to Get an MHIC License in Maryland: Step by Step

1. Confirm the work is covered. List every type of job you plan to take. If the work is residential repair, remodeling, painting, decks, driveways, patios, retaining walls, roofing, or residential solar, you need the license. If your work is new home construction or apartment buildings with four or more units, the MHIC license is not the right credential. Electricians, plumbers, and HVACR contractors should check whether their trade work falls under the exemption in 8-301(c).
2. Choose your business structure. Decide whether you will apply as an individual or through a business entity. If you use an LLC, file Articles of Organization with SDAT through Maryland Business Express at egov.maryland.gov/businessexpress. Check the name against SDAT's business search at egov.maryland.gov/businessexpress/entitysearch before you file, since a misleadingly similar name can be rejected.
3. Buy general liability insurance of at least $500,000. Ask your insurer for a certificate that lists the exact legal name of the applicant. Do not buy a $50,000 policy because some guides suggest it. That figure is wrong for this license.
4. Check the eligibility requirements on the Commission's page. This guide does not restate every eligibility condition. The Commission's current application and instructions control, so read them line by line before you pay anything.
5. Complete the MHIC license application. Submit it through the Department of Labor, Division of Occupational and Professional Licensing, at labor.maryland.gov. Answer every question, and make names and addresses match your SDAT record and insurance certificate. List every company location you plan to operate from, because each additional location carries its own $281.25 fee.
6. Pay the fees. The original contractor license requires the $281.25 application fee, the $100 Guaranty Fund assessment, and the $22.50 processing fee, for a total of $403.75. Pay the exact amounts shown on the current schedule.
7. Schedule and pass the exam. PSI administers the Commission's examination. The exam fee is not confirmed by our sources, so ask the Commission for the current amount before you schedule. Also confirm whether the exam comes before or after the application decision, since the sequence can change.
8. Wait for the decision, and do not contract for covered work until your license is issued. The processing time is not confirmed in our sources. Ask the Commission for the current timeline, and keep copies of every document you submit.
9. Calendar your renewal. The license runs two years. Plan for $281.25 in renewal application fees and $175 for the Guaranty Fund assessment, or $456.25 total. Start the renewal well before the expiration date so you never bid or work on an expired license.

What to Expect After You Are Licensed

A valid license may help you bid on covered residential work and show homeowners that you meet state requirements. It can also support the consumer protection that the Home Improvement Guaranty Fund provides. A license does not guarantee that you will win jobs, that the Commission will issue it on a particular date, or that every dispute will be resolved in your favor. Treat it as one part of a compliant business, not a sales tool.

Common Mistakes to Avoid

• Using outdated fees. The $250 plus $125 figures are from a 2011 notice. Use the current schedule.
• Buying the wrong insurance limit. The requirement is $500,000 in general liability coverage, not $50,000.
• Assuming a surety bond is required. The statute does not require one. Do not assume a bond can replace the required insurance.
• Taking on new construction or large apartment buildings. A home improvement license does not cover those projects.
• Stretching the trade exemption. An electrician, plumber, or HVACR contractor is exempt only when acting within the trade. Other improvement work may need the license.
• Mismatched names. If the entity name on your SDAT filing differs from the name on the application or insurance certificate, the file can stall.
• Paying estimated amounts. Submit the exact fees on the current schedule, not rounded figures from a blog or forum.
• Forgetting renewal. Put the two-year expiration date on your calendar the day the license is issued.

Tips for a Cleaner Application

• Finish your SDAT filing and insurance before you start the MHIC application, so the names and dates match across every document.
• Keep one master sheet with your entity name, addresses, insurance policy number, and fee receipts.
• Call the Commission before you submit to confirm the current fee schedule, exam fee, and processing time. Write down the name of the person you spoke with and the date.
• If you need help with the business side, the Maryland Small Business Development Center Network offers free counseling at marylandsbdc.org.
• For tax registration questions, such as sales tax permits for materials or the state income tax treatment of an LLC, check the Comptroller of Maryland at marylandcomptroller.gov.

Final Checklist

1. Confirm the work is residential home improvement and not new construction or a 4+ unit apartment building.
2. Form your LLC with SDAT if you will use one, at the $100 filing fee.
3. Buy at least $500,000 in general liability insurance and get the certificate.
4. Read the Commission's current eligibility requirements.
5. Submit the MHIC application at labor.maryland.gov.
6. Pay $403.75 in original contractor fees, using the current schedule.
7. Confirm the PSI exam fee and schedule the exam.
8. Calendar the two-year renewal.

The MHIC license is a practical requirement for most residential contractors in Maryland. Work from the Commission's current forms, check every figure against the official schedule, and confirm any unverified item before you commit money. For questions about your specific business, speak with a qualified Maryland attorney or CPA.