Maryland Business License Requirements for an LLC

A Maryland business license gives your Limited Liability Company (LLC) permission to operate in a certain location or within a specific industry.

We can’t walk you through any applicable license applications step-by-step, because every business is unique. But we do provide helpful resources like:

• information about state licensing rules
• instructions for researching municipal licenses

And if you want to just hire a company to do the research for you, we have a recommendation below.

Maryland Business License Requirements

After you form a Maryland LLC, you may need to obtain a business license or permit.

Your requirements are determined by the industry you are in and where your Maryland Limited Liability Company is located.

Because of the large number of industries and all of the municipalities in Maryland, it’s not possible for us to explain them all. However, you can use the search tools below, call your local municipality, or hire a company for help.

How to get a Business License in Maryland

You can obtain a business license in Maryland by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in.

The business license application typically requires basic information, such as your LLC name, EIN Number, business address, and contact information. Many also include a questionnaire that asks about your business activity.

There are three main licensing jurisdictions:

• State licensing
• Local licensing, such as county, city, township, etc.
• Federal licensing

Does Maryland Require a Business License?

That depends on where your business is located, and what it does.

There are two types of state-level business licenses:

• a general business license
• and an occupational license

Maryland General Business License

Some states have a general license requirement, which means all businesses operating in those states must have the license, regardless of what they do.

But good news: Maryland doesn’t require a general license to do business in the state.

Meaning, your Maryland LLC doesn’t need a general state business license. But depending on what type of business you run, your LLC might need an occupational license (aka “industry-specific” license).

Maryland Occupational License

Most states have occupational business license requirements. This means a license or permit may be required depending on what your business does or what your occupation is. For example, if you sell used cars, or run a hair salon, you may need an occupational business license. But a license may not be required for other types of businesses.

The Maryland Department of Labor has a good overview of licensing requirements and agencies on their Links to Business Licenses page.

The Department of Labor’s Electronic Licensing and Online Forms page has a list of professions that can help you determine if your Maryland business needs an occupational license or permit, and which agency to contact about applying for the license.

Certain business licenses are handled by the Maryland Comptroller. You can see the industries that are licensed by the Comptroller here: Types of Business Licenses.

You can look through the list of boards and licensing agencies on the Division of Occupational and Professional Licensing homepage to see if your industry or occupation needs a business license in Maryland.

You can also contact the Maryland Comptroller or the Department of Labor’s Division of Occupational and Professional Licensing with questions.

Note: Maryland business licenses are not issued by the Secretary of State or the State Department of Assessments and Taxation (SDAT). The Maryland SDAT is responsible for business entity administration, for example Limited Liability Company formation. Most licenses are handled by the Department of Labor instead.

How much is a Maryland Business License?

Maryland doesn’t have a general business license at the state level, so there are no fees there.

However, your business may need a state-level occupational license or municipal-level license or permit to operate. The filing fee for these licenses will vary depending on where you’re doing business and what industry you’re in. To be honest, we can’t predict your specific Maryland business license cost.

For example, licenses issued by a county that contains a large city are usually more expensive than licenses in less populated, rural counties. And licenses for regulated industries, like child care facilities, are usually more expensive than generic business licenses.

But your LLC might not need a license or permit at all. So your Maryland business license cost could be $0.

See LLC Cost in Maryland to learn about all the possible LLC fees.

Municipal Business License

Municipal business licenses can be issued by the city, town, county, parish, township, borough, etc. We refer to all of these as a “municipality” to keep things simple.

There are two types of municipal business licenses:

• general business license
• industry-specific license

For example, if a municipality has a general business license requirement, all businesses operating in that municipality must have the license, regardless of what they do.

And if a municipality has industry-specific business licenses, a license or permit may be required depending on what your business does. For example, if you operate a food truck, or run a daycare, you may need an industry-specific municipal business license. Or if you’re purchasing or leasing real estate, you may need a zoning permit.

But a license may not be required for other types of businesses, like making wedding invitation templates or offering marketing consulting.

You can contact your municipality to check on their local licensing requirements. In Maryland, licenses are handled by the clerk of your County’s Circuit Court. Find them here: Maryland Circuit Courts.

Maryland Sales Tax License

If you sell products to consumers in Maryland, you may need to collect sales tax and file a Sales and Use Tax Return.

If your business activities are subject to sales and use tax, your LLC must register with the Maryland Comptroller.

Note: This requirement will apply whether you sell products online or in a physical location in Maryland.

You can register for business tax with the Comptroller of Maryland online.

For additional information about the Sales Tax License, see these resources from the Comptroller:

• Sales and Use Tax
• Information for Business Taxpayers

Do I need any federal business licenses?

Most businesses in Maryland don’t need a federal business license. However, certain industries do need federal licenses:

Check out the Small Business Administration’s Licenses and Permits page for a full list of industries with federal license requirements.

If your business isn’t one of these special cases, then the only federal requirements are that your LLC get an Maryland EIN Number (aka Federal Employer Identification Number) and that you file taxes.

Maryland Business License FAQs

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz is the leading expert on LLC education, and has been teaching for 15 years. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.