Complete guide to permits and licenses required to start a dog walking / pet sitting in Baltimore, MD. Fees, renewal cycles, and agency contacts.
Required for all LLCs. Annual report separate requirement below.
Applies to all LLCs; combines annual report and personal property tax return.
Required if using assumed/trade name; renewable every 10 years for $30.
Pet sitting services typically exempt; confirm with Comptroller if selling pet supplies.
Required for withholding MD income tax; federal EIN prerequisite.
As of 2023, pet sitting and dog walking services are not subject to Maryland sales tax unless they include the sale of taxable tangible personal property (e.g., leashes, collars, pet food). If such items are sold and delivered, sales tax applies to those items. See MD Code, Tax-General § 11-201.
Employers must register to withhold state income tax from employee wages. Independent contractors (1099) do not require withholding registration. Registration is done via the Maryland Business Express portal.
Even single-member LLCs without employees may need an EIN to open a business bank account or if taxed as a corporation. Obtained online via IRS website. Not a tax, but a mandatory identifier for tax purposes.
LLCs are pass-through entities unless electing corporate taxation. Profits and losses are reported on the owner’s personal tax return (Form 1040, Schedule C). Single-member LLCs report on Schedule C; multi-member LLCs file Form 1065. Estimated quarterly taxes (Form 1040-ES) may be required if tax liability exceeds $1,000 annually.
Maryland does not impose a separate entity-level income tax on LLCs. Instead, owners report income on their Maryland resident or nonresident tax returns (Form 502 or 505). The LLC itself may need to file Form 508 (Information Return for Pass-Through Entities) if it has nonresident members.
Effective 2022, Maryland allows pass-through entities to elect to pay income tax at the entity level (Form 508PT). This satisfies the tax liability for nonresident members and may simplify compliance. Election must be made annually. See Comptroller Notice 22-04.
Employers with at least one employee must register with the Maryland Unemployment Insurance Program. The employer pays unemployment taxes (FUTA and SUTA); employees do not. New employers typically pay a standard rate of 2.5% on the first $9,000 of each employee's wages annually.
All LLCs formed or registered in Maryland must file an annual report and pay the $300 franchise tax by April 15 each year. This is required regardless of business activity or revenue. The filing is done through SDAT.
Most local jurisdictions require a business license or privilege tax for operating within their boundaries. For example, Baltimore City requires a Business and Professional Occupational License (BPOL) for pet services. Fees and deadlines vary. Check with the specific county or city government for requirements. See link to Maryland directory of local governments for contact details.
Sole proprietors without employees may use their Social Security Number, but an EIN is recommended for LLCs.
LLC members must also report self‑employment tax on Schedule SE.
Even if no tax is due for a quarter, a zero return must be filed.
FUTA tax rate is 6.0% on the first $7,000 of wages per employee, reduced by state unemployment tax credits.
Electronic filing is required if 250 or more forms are filed.
Key hazards for dog‑walking businesses include animal handling, slips/trips, and ergonomic strain. OSHA’s Small Business Handbook provides guidance.
Low‑hazard workplaces (e.g., office‑type settings) may be exempt; however, animal‑handling activities are generally not low‑hazard.
Must provide equal access to services and may need to accommodate service‑animals of clients with disabilities.
Most dog‑walking businesses are exempt from federal permits, but they must follow local ordinances for pet waste collection.
Claims about pet‑care quality, safety, or guarantees must be substantiated; endorsements must be disclosed.
Must pay at least the federal minimum wage, overtime for >40 hrs/week, and keep accurate time records.
Employers must retain I‑9s for three years after hire or one year after termination, whichever is later.
Most small dog‑walking LLCs will not meet the employee threshold, but the requirement is noted for completeness.
Dog walking and pet‑sitting services are not subject to federal licensing regimes such as FDA, ATF, FCC, or DOT. Compliance is limited to the general federal requirements listed above.
If the LLC collects sales tax on taxable services (e.g., grooming, retail of pet supplies), a Sales & Use Tax Permit is also required.
Dog‑walking alone is generally not taxable, but grooming, boarding, or retail of pet supplies is.
Pet walking and pet sitting businesses are typically classified as 'professional services' and subject to local business privilege taxes in urban jurisdictions. For example, Baltimore City requires a BPOL for all businesses, with fees based on gross receipts. Check with your county or city for specific requirements. Some jurisdictions may require a 'Trade Name' registration if operating under a name other than the legal LLC name.
Required for all businesses operating within Baltimore City limits, including pet services
Limits client visits to 4/day, no signage, no employees (Zoning Code §3-104)
Required for all businesses; pet sitting specifically listed
Pet sitting allowed as accessory use with <25% floor area dedicated (BCZR §4.A.3.C)
All businesses must register; no fee but required for tax compliance
No animal boarding >2 animals; walking services generally permitted
Required for pet services operating in unincorporated areas
Daytime dog walking exempt; overnight requires kennel license
Pet sitting prohibited if involves animal care on premises (HCZR §131.2.B)
Pet services allowed with administrative approval; no overnight boarding
Mandatory for all employers with one or more employees in Maryland, including LLCs. Sole proprietors without employees are exempt but may elect coverage. Enforced under Maryland Workers' Compensation Act, Title 9 of the Labor and Employment Article. Independent contractors are not counted as employees.
General liability insurance is not legally required by the State of Maryland for dog walking or pet sitting businesses. However, it is strongly recommended to protect against third-party bodily injury or property damage claims. Some local jurisdictions or property management agreements may require it for operating in certain areas.
No state law in Maryland mandates professional liability insurance for pet sitting or dog walking services. However, it is strongly recommended to cover claims of negligence, such as injury to a pet or failure to provide agreed-upon services. Not enforced by any state agency.
Maryland does not require surety bonds (such as license or performance bonds) for dog walking or pet sitting businesses. No state-level bonding mandate exists for this industry. Some private clients or platforms may request bonding for contractual purposes, but it is not a legal requirement.
If a business-owned vehicle is used for dog walking or pet sitting, commercial auto insurance meeting Maryland's minimum liability limits ($30,000 bodily injury per person, $60,000 per accident, $15,000 property damage) is required. Personal auto policies typically exclude business use. Enforced by MVA under Transportation Article §17-103, Annotated Code of Maryland.
No state law in Maryland mandates product liability insurance. However, if the business sells tangible goods (e.g., homemade pet treats), such insurance is strongly recommended to cover claims arising from defective or harmful products. No enforcement agency for this type of insurance.
Not applicable to dog walking or pet sitting businesses unless alcohol is served or sold. No requirement in Maryland for this industry. If alcohol is ever served (e.g., at a pet-related event), liquor liability insurance may be required by venue or local ordinance, but not by state law for this business type.
All businesses, including sole proprietors and home-based operations, must register with SDAT. Some counties require additional local business licenses. Independent contractors must still register if providing services for compensation.
No, the U.S. Small Business Administration (SBA) indicates that no federal license is required specifically for dog walking or pet sitting services; however, you still need to meet other federal requirements.
You'll need to obtain an EIN from the IRS, file federal income taxes (potentially using Schedule C or as an S-Corp), and pay self-employment taxes on your net earnings, which currently has a fee of $160200.00.
The ADA requires you to ensure your services are accessible to customers with disabilities; this may involve accommodating service animals or making reasonable modifications to your policies and practices, with costs varying.
The Federal Trade Commission (FTC) requires compliance with advertising and marketing regulations, ensuring your claims are truthful and not misleading to consumers, with costs varying.
No, obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) is a one-time requirement and has no associated fee.
Permit Finder asks follow-up questions to give you an exact list of permits.
Find Your Permits