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Maryland · How-To Guide

How do I get a business license?

Maryland Department of Assessments and Taxation - SDAT (entity formation) / Maryland Comptroller (business tax registration) / Local jurisdiction for local licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Maryland Department of Assessments and Taxation (SDAT) (for LLCs and corporations) - file online through Maryland Business Express at businessexpress.maryland.gov; SDAT is the agency that handles both business entity registration AND property assessment in Maryland
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Maryland Comptroller for state business taxes:
  5. - Sales and Use Tax License (if selling taxable goods/services) - free to register at marylandtaxes.gov
  6. - Withholding Tax registration (if you have employees)
  7. Register online at marylandtaxes.gov or through Maryland Business Express (integrated portal)
  8. OBTAIN A LOCAL BUSINESS LICENSE from the County Clerk of the Circuit Court - Maryland requires most businesses to obtain a county business license through the Clerk of the Circuit Court (not a separate county office) in the county where the business is located; fees vary by business type and county; apply at mdcourts.gov/clerks for your county
  9. Check for industry-specific state licenses: contractors (Maryland Home Improvement Commission - MHIC; DLLR); health professionals, real estate, cosmetologists, engineers, and others require licenses through the Maryland Department of Labor (DLLR) at labor.maryland.gov
  10. Renew entity annual report/personal property return with SDAT; renew county business license annually; renew professional licenses per applicable board
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Maryland business address
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $100; corporation: $100 + initial personal property return fee; annual report: $300 for LLCs and corporations (NOTE: relatively high nationally); county business license: varies by business type and county (typically $25-$200+); sales tax registration: free RENEWAL: Entity annual report + personal property return due April 15 each year (combined); county business license: annual; professional licenses: biennial typically ONLINE OPTION: Yes - businessexpress.maryland.gov (integrated one-stop portal: entity formation + tax registration + county license + more); marylandtaxes.gov (state taxes); mdcourts.gov (county business license) WHERE TO GO: SDAT via Maryland Business Express (entity + annual report); Maryland Comptroller (state taxes); Circuit Court Clerk (county business license); DLLR (professional licenses)
Online Option
Yes - businessexpress.maryland.gov (integrated one-stop portal: entity formation + tax registration + county license + more); marylandtaxes.gov (state taxes); mdcourts.gov (county business license)
Where to Go
SDAT via Maryland Business Express (entity + annual report); Maryland Comptroller (state taxes); Circuit Court Clerk (county business license); DLLR (professional licenses)
County-specific variations apply

Maryland's county business licenses are issued by the Circuit Court Clerk's office in each county - a unique arrangement not found in most states. Fees and required license types vary significantly by county and business type. Some business types (food service, liquor, etc.) require additional county health and liquor board approvals. Baltimore City has its own separate licensing requirements.

Maryland Notes

Important state-specific details

  • Maryland Business Express (businessexpress.maryland.gov): Maryland's integrated business registration portal - covers entity formation, state tax registration, county business license, and more in one workflow.
  • SDAT annual report + personal property return: $300 for most LLCs and corporations - relatively high; due April 15; failure to file results in forfeiture.
  • COUNTY BUSINESS LICENSE through Circuit Court Clerk - unique to Maryland; most other states use a separate county licensing office.
  • Maryland sales tax: 6% state rate; no local sales taxes (simpler than many states); food for home consumption exempt; alcohol has separate rate.
  • Maryland DLLR (Department of Labor, Licensing, and Regulation): licenses contractors (MHIC for home improvement), health professionals, real estate, employment agencies, and many others - labor.maryland.gov.
  • Maryland has a graduated state income tax (2-5.75% for individuals) plus county income tax (2.25-3.2% additional by county).
Official Source

State office contact

State Office
Maryland SDAT - dat.maryland.gov | (410) 767-1350; Maryland Business Express: businessexpress.maryland.gov; Maryland Comptroller - marylandtaxes.gov | 1-800-MD-TAXES; DLLR - labor.maryland.gov | (410) 767-2000