Here's what you need in Maryland
Official state business portal: Maryland Business Express. Maryland Business Express is the state's official site to plan, register and manage a business, with step by step guides for registration, tax accounts and licenses.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseTrader's license (for businesses that sell goods). Maryland has no single business license for every business. If you sell goods you did not grow or make, you need a trader's license from your county Clerk of the Circuit Court, renewed every May 1, and some counties also require a local license. | Clerk of the Circuit Court (Comptroller of Maryland, State License Bureau) | Fee not published.Ask the agency | Applyat jportal.mdcourts.govSource | Nov 7, 2026 |
| Form an LLCArticles of Organization. File Articles of Organization with SDAT online through Maryland Business Express or by mail. Standard processing takes about 6 to 8 weeks; expedited and same day service cost more. | Maryland State Department of Assessments and Taxation (SDAT) | $100 filing fee ($150 expedited) | Applyat egov.maryland.govSource | Nov 7, 2026 |
| Business name (DBA)Trade Name Application. If you do business under a name that is not your legal name, register the trade name with the State Department of Assessments and Taxation (SDAT). The registration lasts 5 years and can be renewed. | Maryland State Department of Assessments and Taxation (SDAT) | $25 filing fee | Applyat egov.maryland.govSource | Nov 7, 2026 |
| Sales tax permitSales and use tax license. If you sell taxable goods or services in Maryland, get a sales and use tax license by filing the Combined Registration Application on Maryland Tax Connect. | Comptroller of Maryland | Free | Applyat mdtaxconnect.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Employer unemployment insurance account. When you hire employees in Maryland, register for an employer unemployment insurance account in the BEACON portal, then report wages and pay unemployment insurance tax every quarter. | Maryland Department of Labor, Division of Unemployment Insurance | You pay tax on wages | Applyat employer.beacon.labor.maryland.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Maryland pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual Report and Business Personal Property Return (Form 1)Every Maryland LLC files Form 1, the Annual Report and Business Personal Property Return, with the Department of Assessments and Taxation by April 15 each year. A business approved by MarylandSaves can have this fee waived. You can file online through Maryland Business Express. | Maryland Department of Assessments and Taxation | $300 a year | Applyat egov.maryland.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonSalon permit (shop license). Every beauty or nail salon needs a shop permit from the Maryland Board of Cosmetologists. The board also licenses the cosmetologists who work there. | Maryland Board of Cosmetologists | $225 for a new shop permit | Applyat labor.maryland.govSource | Nov 7, 2026 |
| Child care in your homeFamily child care home registration. You need a Maryland license or registration from the Office of Child Care to provide child care, including a family child care home. There is no application fee. | Maryland State Department of Education, Office of Child Care | Free | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Retail alcohol license (bar or restaurant). Bar and restaurant alcohol licenses are issued by the liquor board of your county or Baltimore City, not by the state. Contact your local board for the license type, rules and fees. | Local liquor boards (state oversight by the Maryland Alcohol, Tobacco, and Cannabis Commission) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| General contractorHome improvement contractor license. Contractors who repair, remodel or add to homes need a license from the Maryland Home Improvement Commission. The license lasts 2 years; other building work may need county licenses or permits. | Maryland Home Improvement Commission (MHIC) | $281.25 application fee plus $100 Guaranty Fund and a processing fee, for 2 years | Applyat labor.maryland.govSource | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage food business. You can make nonhazardous foods in your home kitchen and sell them directly to consumers or to retail food stores in Maryland. A 2026 law (Chapter 320) raised the yearly revenue limit from October 1, 2026. | Maryland Department of Health | Not needed | Source | Nov 7, 2026 |
What is different in Maryland
- At $100, the LLC filing fee is near the middle: 18 of 49 verified states charge less and 21 charge more.
- Homemade food sales are capped at $100,000 a year. Of the 16 states where we verified a cap, 4 allow more.
- Contractor licensing in Maryland: Contractors who repair, remodel or add to homes need a license from the Maryland Home Improvement Commission. The license lasts 2 years; other building work may need county licenses or permits.
- At $225, the salon or shop license fee is among the highest: only 8 of 36 verified states charge more.
- Annual Report and Business Personal Property Return (Form 1): $300 a year. Every Maryland LLC files Form 1, the Annual Report and Business Personal Property Return, with the Department of Assessments and Taxation by April 15 each year. A business approved by MarylandSaves can have this fee waived. You can file online through Maryland Business Express.
Steps to start a business in Maryland
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) ($100).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the Maryland State Department of Assessments and Taxation (SDAT).
Register for sales tax
If you sell taxable goods or services, get your permit from the Comptroller of Maryland before your first sale.
Get the state business license
Trader's license (for businesses that sell goods), from the Clerk of the Circuit Court (Comptroller of Maryland, State License Bureau).
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Maryland Department of Labor, Division of Unemployment Insurance.
City and county permits
Cities and countys in Maryland can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Baltimore: the city, and Baltimore City (an independent city, not part of a county). City business licenses and permits (by business type) (baltimorecity.gov), City of Baltimore (baltimorecity.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Maryland
Do I need a business license in Maryland?
Only some businesses. Maryland has no single business license for every business. If you sell goods you did not grow or make, you need a trader's license from your county Clerk of the Circuit Court, renewed every May 1, and some counties also require a local license.
How much is an LLC in Maryland?
The Maryland State Department of Assessments and Taxation (SDAT) charges $100 filing fee ($150 expedited) to file the Articles of Organization. File Articles of Organization with SDAT online through Maryland Business Express or by mail. Standard processing takes about 6 to 8 weeks; expedited and same day service cost more.
How much does an LLC cost per year in Maryland?
Annual Report and Business Personal Property Return (Form 1): $300 a year. Every Maryland LLC files Form 1, the Annual Report and Business Personal Property Return, with the Department of Assessments and Taxation by April 15 each year. A business approved by MarylandSaves can have this fee waived. You can file online through Maryland Business Express.
Does an LLC need a business license in Maryland?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Maryland still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Maryland?
Yes, if you sell taxable goods or services. If you sell taxable goods or services in Maryland, get a sales and use tax license by filing the Combined Registration Application on Maryland Tax Connect. Official fee: Free.
How much is a DBA in Maryland?
If you do business under a name that is not your legal name, register the trade name with the State Department of Assessments and Taxation (SDAT). The registration lasts 5 years and can be renewed. Official fee: $25 filing fee.
Can I sell homemade food from home in Maryland?
You can make nonhazardous foods in your home kitchen and sell them directly to consumers or to retail food stores in Maryland. A 2026 law (Chapter 320) raised the yearly revenue limit from October 1, 2026. Sales cap: $100,000 a year.
Do contractors need a state license in Maryland?
Contractors who repair, remodel or add to homes need a license from the Maryland Home Improvement Commission. The license lasts 2 years; other building work may need county licenses or permits. Official fee: $281.25 application fee plus $100 Guaranty Fund and a processing fee, for 2 years.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Clerk of the Circuit Court (Comptroller of Maryland, State License Bureau) Checked Nov 7, 2026
- Form an LLC Maryland State Department of Assessments and Taxation (SDAT) Checked Nov 7, 2026
- Business name (DBA) Maryland State Department of Assessments and Taxation (SDAT) Checked Nov 7, 2026
- Sales tax permit Comptroller of Maryland Checked Nov 7, 2026
- Unemployment insurance (once you hire) Maryland Department of Labor, Division of Unemployment Insurance Checked Nov 7, 2026
- Official business portal State of Maryland Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Maryland Board of Cosmetologists Checked Nov 7, 2026
- Child care in your home Maryland State Department of Education, Office of Child Care Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Local liquor boards (state oversight by the Maryland Alcohol, Tobacco, and Cannabis Commission) Checked Nov 7, 2026
- General contractor Maryland Home Improvement Commission (MHIC) Checked Nov 7, 2026
- Selling homemade food (cottage food) Maryland Department of Health Checked Nov 7, 2026
- Annual Report and Business Personal Property Return (Form 1) Maryland Department of Assessments and Taxation Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026