Hotel / Motel Permits & Licenses in Baltimore, MD

Required for all LLCs. Name reservation ($50) recommended prior to filing.

Centralized portal for LLC formation and initial tax registrations.

Required for ALL hotels/motels with 3+ rooms for transient occupancy.

Required if using DBA. Renew every 10 years for $25.

Hotels must collect 6% sales tax on rooms. Register via Maryland Business Express.

Required for withholding and corporate income tax accounts.

Traffic impact analysis may be required for 50+ rooms

Maryland Elevators Safety Law (Business Occupations Article §12-101 et seq.)

Montgomery County Fire Code Sec. 105.6; includes sprinklers, exits, alarms

Prince George's County Code Sec. 4-328; verifies zoning, building, fire compliance

Annual monitoring contract required; Baltimore City Fire Code Sec. 901

Mandatory for all employers in Maryland under the Maryland Workers' Compensation Act (Labor and Employment Article, Title 9). Coverage must be secured through a private insurer, self-insurance (if approved), or the State Accident Fund. Independent contractors may be excluded if properly classified.

While not statutorily mandated at the state level for all hotels, it is effectively required through indirect regulatory or contractual means. Some municipalities may require it as part of business licensing.

Maryland law requires all motor vehicles to carry minimum liability coverage: $30,000 bodily injury per person, $60,000 per accident, and $15,000 for property damage (Maryland Transportation Article §17-103). Applies to shuttle services, maintenance vehicles, or any company-owned fleet.

While not explicitly requiring a separate policy, the Board mandates compliance with dram shop laws (Alcoholic Beverages §12-101), which hold businesses liable for injuries caused by intoxicated patrons. Insurers typically require liquor liability as an endorsement to general liability policies. Required by most insurers and franchisors.

Hotels typically have employees; quarterly wage reporting required.

Must file proof of coverage or exemption with MD DLLR.

LLCs file annual Personal Property Return to maintain good standing.

Hotels and motels in Maryland are required to collect and remit sales tax on room rentals. The state sales tax rate is 6%, but certain jurisdictions may impose additional local lodging taxes. Registration is mandatory even if no fee is charged.

Required for all employers with employees in Maryland. Employers must withhold state income tax from employee wages and remit it to the Comptroller. This includes hotel/motel staff such as front desk, housekeeping, and management.

All employers with employees in Maryland must register for unemployment insurance tax. Applies to hotel/motel businesses that hire staff. Rates are experience-rated after the first few years.

All businesses operating in Maryland, including LLCs treated as corporations for tax purposes, must file corporate income tax. LLCs taxed as pass-through entities are not subject to corporate income tax but must file Form 508 (Maryland Resident Return) or Form 505 (Nonresident Return) if income is sourced in Maryland. This registration is automatic upon formation or registration with the state.

Maryland abolished the franchise tax effective January 1, 2022, but replaced it with an annual report and fee for all LLCs. The fee is based on the LLC's net capital and capital structure. Hotels operating as LLCs must file Form 0911 annually. This is not a tax on income but a privilege tax for doing business in Maryland.

A surety bond of $1,000 to $10,000 (depending on license type and location) is required to secure a liquor license under COMAR 02.02.01.07. The bond ensures compliance with state alcohol laws and covers potential fines or penalties.

Not legally required in Maryland for hotel operations. However, recommended for protection against claims of negligence in services (e.g., event planning, concierge). May be required by franchise agreements or third-party contracts.

No federal or Maryland law mandates product liability insurance. However, if the hotel sells retail items (e.g., snacks, merchandise), general liability insurance typically covers product-related claims. Recommended but not required.

While not mandated by state statute, virtually all lenders, franchisors, and local jurisdictions require proof of commercial property insurance. Covers damage to building, contents, and business interruption.

Not explicitly required by law, but strongly recommended. Required by payment processors (PCI DSS) and often mandated by franchisors. Covers data breach response, legal fees, and notification costs.

Required for all LLCs, especially those with employees or that file employment, excise, or other business tax returns. Even single-member LLCs without employees may need an EIN for banking or vendor purposes.

LLCs are pass-through entities by default. Multi-member LLCs file Form 1065; single-member LLCs report income on Schedule C of Form 1040. Profits subject to self-employment tax unless electing corporate taxation.

Applies to all employers with employees. Requires maintaining a safe workplace, providing training, posting OSHA poster (OSHA Form 3165), and recording work-related injuries (Form 300, 300A, 301 if 11+ employees). Hotels must address hazards such as housekeeping injuries, slips/trips, and emergency preparedness.

Applies to all places of public accommodation, including hotels and motels. Requires accessible guest rooms, entrances, restrooms, parking, and signage per ADA Standards for Accessible Design. New construction and alterations must comply. Existing facilities must remove barriers if "readily achievable.

Hotels built before 1978 must ensure that any renovation disturbing more than 6 square feet of interior paint or 20 square feet of exterior paint is performed by EPA-certified firms and trained renovators. Applies to common areas and guest rooms.

Applies if hotel undergoes major renovation or demolition. Requires notification to EPA/state agency 10 days prior to work. Asbestos inspection required before renovation. Common in older hotels (pre-1980s).

Hotels must ensure all advertising (websites, booking platforms, brochures) is truthful and not misleading. Includes accurate representation of amenities, pricing, cancellation policies, and availability. Applies to third-party booking sites if hotel controls content.

Requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). Applies to housekeeping, front desk, maintenance, and management staff. Tip credits do not apply to hotel workers unless they are in food service roles.

Requires eligible employees (12 months, 1,250 hours) to be granted up to 12 weeks of unpaid, job-protected leave annually for qualifying medical or family reasons. Posting notice and certification procedures required.

Many counties and cities in Maryland impose additional lodging taxes on hotels and motels. Examples include Montgomery County, Prince George's County, Baltimore City, and Frederick County. Registration is required with the local tax authority. Rates and fees vary. Must be collected from guests and remitted monthly or quarterly.

If the hotel/motel serves meals (e.g., complimentary breakfast, room service, on-site restaurant), it must collect and remit meals tax. The tax applies to both in-house guests and outside customers. Registration is through the Comptroller's online system.

Most counties and municipalities in Maryland require a local business license or privilege tax for operating a hotel/motel. Fees are often based on gross receipts or number of rooms. Examples: Baltimore County, Montgomery County, Frederick City. Must be renewed annually.

Administered at county level; check specific county trader's license requirements

Specific to location; e.g., Baltimore City requires Special Zoning Exception for hotels (Baltimore City Zoning Code Article 4)

Montgomery County Code Sec. 8-28; similar in other counties

Requirements vary; electronic signs may need additional approval

Hotels with restaurants need food service plan review; bedding/linen inspections required

All employers must complete Form I-9 for each new hire to verify identity and work authorization. Must retain for 3 years after hire or 1 year after employment ends, whichever is later. Subject to ICE audits.

Kari’s Law (2019) and RAY BAUM’S Act (2018) require MLTS to allow direct 911 dialing without prefixes (e.g., "9") and to transmit caller location to emergency responders. Applies to all hotels with internal phone systems.

There is no federal business license required to operate a hotel or motel. Licensing is handled at state and local levels. However, federal regulations (tax, labor, safety, accessibility) still apply as detailed above.