Maryland Business Licensing Information for Contractors

Maryland independent contractors

Business Licensing Information for Contractors in Maryland

Contractor’s License Requirements in Maryland

In the state of Maryland, general contractors are not required to have a license, but if you wish to do home improvement projects, you must obtain a license from the Maryland Home Improvement Commission (MHIC).

Home improvement contractors and subcontractors are able to get a license through the Commission. However, those looking to apply for a license must first pass the exam as provided by PSI Exams.

Licensing fees are as follows:

Original License (2 year period)

  • Contractor$250 Application Fee$250 Per Each Additional Company Location$100 Guaranty Fund Assessment$ 20 Processing Fee 
  • Subcontractor$150 Application Fee$ 20 Processing Fee

To apply, contact the MHIC at 410-230-6309.

Requirements for licensure include the contractor having liability insurance in the amount of $50,000 and two years of trade experience.

Maryland Business Licensing for Electricians

Electrical Contractor and Electrician Licenses in Maryland

The state of Maryland only issues licenses for Master Electricians. All other subcategories under electrical work must refer to local jurisdictions in order to obtain the necessary licenses. If a lesser license is not provided on a local level, you must apply for a Master Electrician license through the Board of Master Electricians. Prior to the application process, you must pass the examination from PSI Exams.

The fees are as follows:

  • Master (Active): Original - $20, Renewal - $25
  • Master (Inactive) (Not Insured): Original - $20, Renewal - $50
  • Active Assignment to Company: Original - $20, Renewal - $25

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Business Licensing Information for Plumbers in Maryland

In order to do plumbing work in the state of Maryland, the state requires you to have a license. On the website for the WSSC, plumbers can access information on applying to become a plumber, rules and regulations, and the plumbing code.

The state of Maryland issues licenses for Master Plumber and Journeyman Plumber. To apply for a license contact:

Maryland Board of Plumbers500 North Calvert Street, 3rd FloorBaltimore, MD 21202

The application fee for the Journeyman Plumber is $35 and the Master Plumber application fee is $70. Master Plumbers are required to have two years of experience as a Journeyman Plumber, have $400,000 insurance coverage per occurrence. Journeyman Plumbers are required to have four years of apprentice experience and complete a 32 hour back flow course.

Permit and Development Management

All plumbers are required to be state licensed with the exception of those serving Baltimore, Montgomery or Prince George Counties. These counties offer their own licenses and also have their own plumbing code.

More information can be found using the website for the Baltimore County Permits, Approvals and Inspections. This information also applies to gas fitters in these counties.

Additional Business Licensing for All Businesses in Maryland

Business License Information System

Information for business and occupational licenses in the state of Maryland can be obtained from the website for the Department of Commerce. This website serves as a resource for links to the agencies who supply permits along with requirements for registration.

Professional Licenses

Through the Division of Occupational and Professional Licensing, interested parties can obtain licenses for 26 different professions in the state of Maryland.

Maryland Business Tax Information

Business Tax Registration

Any business operating in the state of Maryland must register for a tax identification number, licenses or applicable permits, sales tax accounts and unemployment insurance tax using the website for the Comptroller of Maryland. To determine your tax liability or to make online payments, consult the website linked.

Insurance Requirements for Businesses in Maryland

Unemployment Tax Requirements

Unemployment insurance is required to be paid by every business operating in Maryland. This process is managed and regulated by the state’s Division of Unemployment Insurance. A guide is available online for businesses interested in more information on the necessary requirements when obtaining unemployment insurance. Under certain conditions, your business may need to remit payment for unemployment insurance taxes.

Workers’ Compensation Requirements

With very few exceptions, employers in the state of Maryland who employ more than one worker must get and maintain Workers’ Compensation Insurance. Using the Workers’ Compensation Commission’s website, you can obtain coverage, report your intent to self-insure and verify that a company has the necessary insurance to meet the state’s requirements.

Under the law, the premiums paid for this type of insurance coverage is always paid for by the employer and should never be deducted from the employee’s earnings.

For more information, contact can be made with the Workers’ Compensation Division using the address below:

Maryland Workers' Compensation Commission10 East Baltimore StreetBaltimore, MD 21202-1641

New Hire Reporting Requirements for Businesses in Maryland

Reporting New Hires

Under federal law, employers are required to report newly hired employees within 20 days of their hire date. The following information can be reported using the State Directory of New Hires:

  • Employee’s name
  • Address
  • Social Security Number
  • Date of birth
  • Hire date
  • Employer’s name
  • Payroll address
  • Federal identification number (FEIN)

Employers may use the website for reporting, fax the information to 888-634-4737 or by sending it to the following address:

Maryland State Directory of New Hires

P.O. Box 1316

Baltimore, MD 21203-1316

Licensed Contractors in Maryland

Under the Department of Labor, Licensing & Regulation, users can search for active licenses for all contractors and license holders in the state of Maryland.

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