General Contractor Permits & Licenses in Baltimore, MD

General contractors in Maryland are generally required to collect and remit sales tax on taxable materials and equipment sold to customers. Labor-only services are typically not taxable, but combined labor and materials may be. Registration is done via Maryland Business Application for Registration (MC-3).

Employers must withhold state income tax from employee wages. Registration is completed through the Maryland Business Application for Registration (MC-3).

Employers must pay state unemployment insurance tax. New employers pay a standard rate (currently 2.5% for 2024) on the first $9,000 of each employee's wages annually. Rate may change based on experience rating after several years.

All LLCs doing business in Maryland must register for state income tax purposes. While LLCs are pass-through entities federally, Maryland requires filing of Form 500 (Maryland Resident Return) or Form 505 (Nonresident Return) annually. This is a registration obligation via MC-3 application.

All businesses in Maryland, including LLCs, must file a Personal Property Record (Form SDAT-603) annually, declaring taxable personal property (e.g., tools, equipment, vehicles). This serves as Maryland's franchise tax equivalent. Failure to file results in default assessment and penalties.

General contractors must obtain a local business license or privilege tax license in each county or city where they operate. Requirements and fees vary. For example, Baltimore City requires a Business Privilege License; Montgomery County requires a Business License. Verify with local clerk or licensing office.

While not a tax, this is a mandatory regulatory requirement for general contractors in Maryland performing residential work. Contractors must register with MHIC, pass a trade exam, provide proof of liability insurance, and post a surety bond. This includes most general contracting activities on homes.

Required for all LLCs; file online via Maryland Business Express

Replaces former annual report; includes business personal property tax assessment

Required for all home improvement work (includes most general contracting involving residential alterations/repairs); financial responsibility via bond ($20,000 min) or insurance; 2+ years experience or equivalent; no exam required

MHIC license suffices for residential and small non-residential; separate Board classification (A/B/C) needed for larger commercial work; exam required for classifications; prerequisites include 4+ years experience

Required if general contractor performs/supervises these specialty trades; MHIC contractors must list licensed trades; exams and experience (e.g., 4 years apprenticeship) required

Most Maryland counties require general contractors to file an annual Contractor’s License Tax return based on gross receipts. Failure to file may result in penalties and denial of building permits. Check with your county’s Department of Finance or Treasurer’s Office.

Required for all general contractors operating in Baltimore City; separate contractor registration may be needed via OneStop portal

Confirms zoning compliance for contractor office/yard; home occupation permit required if from residence (limits on employees/storage)

General contractors must pull permits for their projects; trade licenses verified during review

Required for all permanent signs over 4 sq ft; freestanding signs for contractor yards common

Common for contractor storage yards; annual inspection required

Mandatory for commercial properties; police/fire response verification

No general business license but contractors must register and obtain zoning approval for operations

Separate from state MHIC; required to obtain county building permits

Limits vehicle storage, employee visits, signage

Filed via Maryland Business Express; no renewal required unless name changes

Maryland Registration Number issued; required for contractors selling materials separately from labor

Required for all home improvement contractors, including general contractors performing home improvements over $2,500. The bond is $12,000 and protects consumers against fraud or failure to perform. Required even for LLCs. See MHIC Licensing Guide: https://hics.md.gov/wp-content/uploads/sites/52/2023/06/MHIC-Licensing-Guide-June-2023.pdf

Maryland requires performance and payment bonds for public works projects exceeding $100,000 under State Finance and Procurement Article § 15-104. Bond amount typically 100% of contract value for performance and 50% for payment bonds.

Not mandated by Maryland law. However, recommended for contractors providing design advice or managing complex projects. Often required in commercial contracts.

General contractors who only install materials (not manufacture) are not required to carry product liability insurance. Risk is typically covered under general liability policies.

Only required if the business serves alcohol (e.g., at promotional events). General contractors not serving alcohol are not subject to this requirement.

While single-member LLCs with no employees may use the owner's SSN, obtaining an EIN is strongly recommended for liability protection and banking purposes. EIN is required for all multi-member LLCs.

Single-member LLCs are disregarded entities for federal tax purposes and report income on Schedule C of Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. All members pay self-employment tax on net earnings via Schedule SE.

General contractors must comply with OSHA construction standards (29 CFR 1926), including fall protection, scaffolding, electrical safety, and hazard communication. Employers with 10+ employees must maintain Form 300 logs.

General contractors must ensure new construction and alterations comply with ADA Standards for Accessible Design. Contractors building or modifying public facilities must follow ADA accessibility guidelines. DOJ enforces compliance in public accommodations.

Required for contractors disturbing more than 6 square feet of interior paint or 20 square feet of exterior paint. Requires firm certification, certified renovators, and compliance with work practice standards.

General contractors must ensure all advertising (including online reviews, social media, and testimonials) is truthful and not misleading. Must disclose material connections (e.g., paid reviews). Applies to all marketing activities under FTC Act §5.

All employers must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is mandatory for federal contractors and some states, but voluntary for most private employers unless specified by contract.

Required for all contractors performing work in the county; verifies state licensing

General contractors must be registered to pull permits

General contractors often need trade subs registered; county supplements state requirements

Required for all employers with one or more employees, including part-time workers. Sole proprietors without employees are exempt but may elect coverage. General contractors are classified under NAICS 236210 (Construction - Residential and Commercial).

While not mandated by the State of Maryland, many counties (e.g., Montgomery County) and project owners require proof of general liability insurance as a condition of licensing or bidding. Coverage typically $500,000–$1M.

Maryland requires all business-owned vehicles to carry minimum liability coverage: $30,000 bodily injury per person, $60,000 per accident, $15,000 property damage. Personal auto policies do not cover business use.

General contractors must pay at least federal minimum wage and overtime (1.5x regular rate) for hours over 40/week. Most construction workers are non-exempt. Independent contractor classification must comply with DOL’s 2024 final rule.

Requires covered employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Posting and recordkeeping requirements apply.

Requires submission of workforce data by race, ethnicity, and job category. Administered by EEOC but triggered by federal contracting status.

There is no federal license required to operate as a general contractor. Licensing is handled at the state or local level (in Maryland, through the Home Improvement Commission). This is a clarification to prevent confusion with state-level requirements.

All Maryland LLCs must file an Annual Report each year by September 30. Failure to file may result in administrative dissolution. The report includes business address, registered agent, and management structure.

General contractors performing residential construction, remodeling, or repairs exceeding $2,500 must hold an MHIC license. Renewal is required every two years. Licensees must complete 6 hours of continuing education prior to renewal.

MHIC licensees must complete 6 hours of approved continuing education every two years, including 1 hour on MHIC laws and regulations. Courses must be pre-approved by MHIC.

All employers in Maryland must carry workers' compensation insurance. Coverage must be maintained continuously. Employers must file annual premium reports and pay premiums based on payroll.

Employers must file Form UCT-1 (Contribution Report) quarterly and remit unemployment insurance taxes. New employers typically pay 2.5% for the first year.

Form 940 is filed annually to report FUTA tax. Most employers qualify for a 5.4% credit for paying state unemployment taxes, reducing effective rate to 0.6%.

Form 941 must be filed quarterly to report wages, tips, and other compensation, along with withheld federal income tax and FICA taxes.

General contractors may be required to collect sales tax on materials sold to customers. Contractors are generally not required to collect tax on labor for real property improvements, but must self-assess use tax on materials they supply. Filing frequency is determined by the Comptroller based on expected liability.

Employers must display OSHA Form 200 (or equivalent) and the OSHA Job Safety and Health – It's the Law poster (OSHA 3165) in a conspicuous location. Poster must be accessible to all employees.

Employers must provide itemized pay stubs showing gross pay, deductions, and net pay. Must also provide written notice of pay rate, pay schedule, and employer information at time of hire and upon change.

Many Maryland counties and municipalities require a local business license or trade permit. These must be visibly displayed at the business location. Examples include Montgomery County, Baltimore City, and Prince George’s County. Requirements and fees vary.

All LLCs with employees or that file business tax returns (e.g., Form 1120-S, 1065) must obtain an Employer Identification Number (EIN). Required for tax filings, banking, and licensing.

Businesses in Maryland must file a personal property tax return with their county assessing office annually. Due dates and forms vary by jurisdiction (e.g., January 15 in Montgomery County, March 1 in Baltimore County).

LLCs must maintain a registered agent in Maryland. Any change must be filed promptly. Failure to do so may result in loss of good standing.

Employers with 11+ employees must maintain OSHA Form 300 (Log of Work-Related Injuries), Form 301 (Incident Report), and post Form 300A (Summary) from February 1 to April 30 each year. Construction businesses are not exempt.

All home improvement contracts over $2,500 must be in writing, include MHIC license number, 3-day right to cancel, and specific disclosures. Contractors must retain contracts for at least 3 years after project completion.