How Much Does a Business License Cost in Maryland?

If you’re thinking about starting a business in Maryland, there are some initial steps that may require some research and decision-making before you can register your business.

The first step, as in any state, is to determine the business structure that you want to operate under and take the required steps to legally establish your business entity.

You should obtain a Federal Tax ID Number from the IRS, whether you are a sole proprietor, a partnership, LLC or a corporation with a board of directors and numerous officers and staff.

Then, you will want to establish a location for your business, whether you operate as a home-based business, have a brick-and-mortar store, or rent office space in a multi-use building. Always check the specific legal requirements and ramifications based on your business model and long-term growth and development projections.

How much does a business license cost in Maryland?

In the Old Line State, virtually any type of business may require a Maryland business license to operate legally in a specific location or under local jurisdiction. The key word is “may.” Licenses in the state are primarily administered by local authorities rather than a state agency, although permits for specific types of business and business entities are issued by the state.

Depending on where your business is located, your County Clerk of the Court can offer up-to-date advice about local licensing requirements. It is wise to contact your county office of inspections, licenses and permits.

In addition, the state has created a new licensing OneStop portal, allowing businesses to register for licenses and permits issued by state agencies. Some of those include mechanic licenses, insurance licenses, and real estate and home inspection registrations.

Types of business licenses in Maryland and their cost

The Comptroller’s License Bureau holds responsibility for enforcement of the business licensing regulations. The list of licenses that may be required by various business entities is long and sometimes confusing, and it can be wise to seek the advice of an agency or trained professional if you are considering starting a new business in Maryland.

As previously stated, the need for and associated cost of a specific license may vary from one county or city to another. Always checks with the proper authorities if you plan to open a new location or at some point in the future you consider moving your business headquarters from one location to another.

Examples of different industries and the different licenses they require in Maryland

Licensing and permit fees, as mentioned, can vary widely from one type of business to the next, and from one county or city to another in Maryland. For example, if your business is based on retail sales, you will likely need to secure a Trader’s License, which is issued for a term that runs from May 1 through April 30^th of the following year.

This type of license is based on the business stock value, and varies from $15 for stock valued at $1,000 or less to $800 for those with sales stock exceeding a value of $100,000. Annual renewal fees for such a license are based on the same tiered scale.

In addition, businesses that have more than one retail outlet may be required to pay additional fees, ranging from $5 to $375 per store, based on the total number of stores and the specific locations. Penalties for operating without a license may include fines of up to $1,000 per violation.

By contrast, the Scrap Metal Processor or Junk Dealer licensing fee is $10, plus a $2 issuing fee.

Unique stipulation in Maryland licensing law

While the Traders License is one of the most-commonly-required licenses in Maryland, there are some quirky elements within the law:

An individual may sell personal effects on private property without a license, but no more than one sale can be conducted for no longer than 14 days in a single year.

Such licenses are not required if goods are sold “at a show” held or promoted by a church or a government agency, a volunteer fire department or rescue squad, an amateur radio organization, an antique vehicle, machine or equipment organization, or a model train collectors’ association. Even with this exemption, there can be exceptions, so it is also best to check with local government authorities.

A Peddlers License is required to sell fish or oysters in natural or unpreserved condition, and for the sale of perishable fruits and vegetables in natural condition. It is likely this type of license is designed to regulate “road stands” and farmers markets.

Maryland also issues licenses for vending machine operators, including those that offer cigarettes, magazines or newspapers, soap and postage stamps, among others.

The state of Maryland also issues an Exhibitor’s Affidavit under certain conditions to allow an exhibitor to participate in a show without a valid Trader’s License or other previously-issued official authorization.

Other important licenses issued in Maryland

The Maryland Home Builder Registration Act details the requirements for builders of new homes or commercial buildings. Businesses that hold a state-issued Construction License are not required to obtain a Construction License issued by the local Clerk of the Court in specific counties. However, a Home Improvement License is required for all renovation or remodeling work.

Additional licensing designations include Storage Warehouse Licenses, Micro Market Licenses, Transient Vendors Licenses, and Eastern Shore Slot Machine Licenses.

Renewing your business license in Maryland

Most business licenses in Maryland need to be renewed each year to stay active. Renewal deadlines and fees vary depending on your license type and the county or city where your business operates, so it’s important to keep track of these dates carefully.

Annual renewal requirements

You’ll usually receive a renewal notice from your local Clerk of the Court or the state agency that issued your license. Renewals can often be completed by mail, in person, or online through the Maryland OneStop Licensing Portal.

To renew, you’ll need your current license number, updated business information, and payment for any renewal fees. Some industries may also require proof of insurance, inspections, or updated certifications before renewal is approved.

Associated costs

Renewal fees in Maryland depend on the type of license you hold, your location, and whether your industry is regulated by the state.

For many small businesses, renewal fees are similar to the original cost, often ranging from $25 to a few hundred dollars per year. Retailers, contractors, and service-based businesses with a Trader’s License usually pay based on the value of their average stock or sales volume, which can make renewal costs slightly higher as your business grows.

Professionals such as real estate agents, barbers, or home improvement contractors renew through their state licensing boards and may need to pay additional education or certification fees during renewal. If your business requires health or safety inspections (for example, restaurants or childcare centers), those inspection fees are often due at the same time as your renewal payment.

It’s a good idea to review your renewal notice early each year to confirm the exact amount and due date, since local offices may adjust fees periodically or include small administrative costs for mailed or in-person payments.

Late penalties

If you miss your renewal deadline, your business license may expire, which can lead to penalties or temporary suspension of your ability to operate legally. Depending on your jurisdiction, late fees may apply, and you could even be required to reapply for a new license altogether.

To avoid interruptions, set reminders well ahead of your renewal date and submit payment and documents on time. A quick check-in with your local licensing office can help make sure everything stays in good standing.

Conclusion

Getting your business licensed in Maryland can seem complicated at first, but once you know which agencies to contact and what your business needs, it’s actually a pretty straightforward process. Costs will vary depending on your location and industry, so it helps to understand how business license fees work before you apply.

Because licensing rules vary by location and industry, it’s always best to double-check requirements with your local Clerk of the Court or through Maryland’s OneStop Licensing Portal before opening your doors.

A little preparation now can save you from delays or fines later, and set your business up for success from day one.

If you’re ready to take the next step, Tailor Brands can help you form your LLC, stay compliant, and start doing business in Maryland the right way.

FAQ