Getting your contractors license in Maryland will involve contacting several agencies, understanding what requirements are set forth by those agencies, and paying the associated fees related to fulfilling those requirements. In almost every instance, you’ll apply to the Maryland Department of Labor, Licensing and Regulation, or the DLLR. However, general contractors may have to go through the Maryland Home Improvement Commission (MHIC) for a license that better suits their work parameters. The MHIC requires a contractor license as well as a certificate of insurance to start work.
Your contracting company will also need to check in with the Maryland Department of Assessments and Taxation to make sure you are properly registered and are authorized to do business in the state of Maryland. Because becoming a contractor in Maryland is a considerable task, it helps to know the right information to untangle the complications.
Maryland Contractor License Types
The Maryland Department of Labor, Licensing and Regulation (DLLR) may require that you are licensed to perform specific home improvement work in the state. Maryland’s DLLR offers four types of contractors licenses:
- Master Electrical
- Master or Journeyman Plumbing
- Master (Restricted), Limited, or Journeyman HVACR
- Home Improvement License
Some specialty trade licensing will be handled at the local level. To understand if you need to be licensed at the state or municipal level for these specialty trades, contact your local governmental body.
Maryland Home Improvement Commission (MHIC) Licenses
A home improvement license may be most fitting for a general contractor aiming to become licensed in the state of Maryland. To get your home improvement license, you will have to apply to the Maryland Home Improvement Commission (MHIC), which operates under the Maryland Department of Labor, Licensing and Regulation to regulate all home improvement contractors.
Maryland Home Improvement License
General contractors planning on performing what the MHIC deems as “home improvement work” will have to become licensed. According to the Maryland Home Improvement Commission:
“Home improvement work includes alteration, remodeling, repair or replacement of a building or part of a building used as a residence. Home improvement also includes work done on individual condominium units. Home improvement does not include work done on commonly owned areas of condominiums or buildings that contain four or more single-family units.”
The MHIC offers several licenses that fall under the MHIC parameters of home improvement. However, for your application to be approved, you will need to satisfy certain requirements to obtain your MHIC license. During your Maryland Home Improvement Contractors License application process, you will need to:
- Schedule and pass an exam through PSI Exams.
- Register your business name through the Maryland Department of Assessment and Taxation.
- Provide documents confirming financial solvency or purchase a surety bond.
- Submit real estate and property assessment notices as well as bank statements.
- Provide a credit report via Annual Credit Report.
- Obtain general liability insurance.
- Obtain a surety bond.
- Release a copy of any conviction records.
While most of these requirements are done at the state level, you can get bonded and insured at the state or municipal level, through business insurance and bonding companies.
Maryland Home Improvement Licensing and Registration Fee Summary
Your MHIC license will include your application fee, paying into a guaranty fund, as well as a processing fee. See what a Maryland home improvement license will cost you below:
The fees for a first-time license applicant include:
- $250 original application fee for a single company location.
- $250 for each additional contractor’s company location.
- $100 guaranty fund contribution.
- $20 processing fee.
The fees for a renewal license applicant, valid for two years, include:
- $250 renewal application fee for a single company location.
- $250 for each additional contractor’s company location.
- $125 guaranty fund contribution.
- $5.42 for a credit report.
Home Improvement Contractor Exam
The MHIC will require you to register, schedule, and pass the home improvement contractor exam. It is only when you pass this exam that you can apply for a home improvement contractor license. Your exam will be administered through PSI Exams. Visit the Home Improvement Contractor and Salesperson Candidate Information Bulletin for exam scheduling, testing locations, and fees.
Contractors Exam Fees
The MHIC home improvement contractors exam requires a standard fee of $63. Payments can be made to PSI Examination Services.
Maryland Business License and Registration
Visit the Maryland Department of Assessments and Taxation for:
- Maryland Business Registration
- Maryland Sales and Use Tax Registration
You can also refer to the State of Maryland Business Express portal for any Maryland business information.
Maryland Workers’ Compensation
Not all injuries on the job are covered by the Maryland Workers’ Compensation Law. Therefore, if you have employees then it’s a good idea to have worker’s compensation insurance For details about how Maryland’s Workers’ Compensation employee benefits and rights work, visit the Maryland Workers’ Compensation Commission.
Maryland Contractor License Search
Visit the DLLR license search database to search for active licenses by name or city.
See general contractor licensing information in nearby states
- WV contractors license
- PA contractor license
- Delaware contractors license
- DC contractors license
- Virginia contractors license
For More License and Career Guides
To find out how to become a General Contractor in another state, start here.
For information on other trades in Maryland, click on a link below to learn more about the licensing requirements:
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