Maryland does not issue a single “general contractor license.” Instead, contractors who work on residential properties need a Home Improvement Contractor (MHIC) license, issued by the Maryland Home Improvement Commission under the Department of Labor. Commercial construction follows a different path, with licensing handled at the local level. Most people searching for a general contractor license in Maryland need the MHIC license, so here is exactly how to get one.
What the MHIC License Covers
The MHIC license authorizes you to perform alteration, remodeling, repair, or replacement work on buildings used as residences. That includes work on individual condominium units. It does not cover work on commonly owned areas of condominiums or buildings with four or more single-family units. If your work falls into those categories, or if you’re doing commercial construction, you’ll need to look into local county or city licensing instead.
If you plan to build new homes rather than improve existing ones, that’s a separate track. New home builders must register under the Maryland Home Builder Registration Act through the Attorney General’s Office, not the MHIC.
Eligibility and What You’ll Need
Before you apply, you need to line up several pieces of documentation. The MHIC requires proof of insurance, financial solvency, and a completed application with fees. Here’s what to prepare:
- General liability insurance: You need at least $50,000 in general liability coverage. The certificate must list both your individual name and your company name, and it must designate the Maryland Home Improvement Commission as the certificate holder at their Baltimore office address.
- Surety bond (if needed): If you can’t demonstrate financial solvency on your own, you can satisfy this requirement by obtaining a two-year, $20,000 surety bond. The bond must show both your personal name and your business name, and you must sign it yourself.
- Business formation documents: If you’re operating as an LLC, corporation, or other entity, have your formation paperwork ready.
Application Fees
The MHIC license runs on a two-year cycle, and the upfront costs for a new contractor license add up to just over $400. Here’s the breakdown:
- Application fee: $281.25
- Guaranty Fund assessment: $100
- Processing fee: $22.50
If you operate from more than one location, each additional location costs another $281.25. The Guaranty Fund is a state-managed pool that compensates homeowners harmed by licensed contractors, and every new applicant pays into it. When you renew your license every two years, the Guaranty Fund assessment increases to $175.
If you’re hiring salespersons who will sell home improvement services on your behalf, each salesperson license costs $112.50 plus a $22.50 processing fee.
How to Apply
Applications go through the Maryland Home Improvement Commission. You can find the forms on the Department of Labor’s website under the MHIC section. The process is straightforward but requires attention to detail, since incomplete applications will slow things down.
Gather your insurance certificate, surety bond (if applicable), and business documents before you start filling out the application. Submit everything together with your fees. The Commission does not publish a specific processing timeline, so expect some waiting. Calling the MHIC directly at 410-230-6309 is the fastest way to check on your application status or ask about missing documents.
Local Licenses You May Also Need
The MHIC license is a state-level requirement, but it’s not always the only one. Many counties and Baltimore City require a separate construction business license issued by the local Clerk of the Court. This is in addition to, not a replacement for, your MHIC license.
If you’re based outside Maryland but plan to work in the state, you’ll need a nonresident construction license. Fees for out-of-state contractors run $50 in most counties and $60 in Baltimore City. To find out what your specific county requires, contact your local Clerk of the Court or the State License Bureau at 410-260-6240.
Commercial Contractor Licensing
Maryland does not have a statewide commercial general contractor license. Commercial construction licensing is handled at the county and municipal level, meaning requirements, fees, and processes vary depending on where the project is located. If your work involves commercial properties, contact the permitting or licensing office in the jurisdiction where you’ll be working. You’ll likely need a local construction firm license from the Clerk of the Court as well.
Keeping Your License Active
Your MHIC license is valid for two years. Renewal requires paying the application fee again along with the $175 Guaranty Fund assessment. You’ll also need to keep your general liability insurance current and maintain the minimum $50,000 coverage throughout the license period. If your insurance lapses, the Commission will be notified since they’re listed as the certificate holder, and your license could be suspended.
Keep your business information updated with the MHIC as well. If you change your business name, address, or entity structure, notify the Commission so your license records stay accurate. Operating under a name or structure that doesn’t match your license can create problems with both the state and your customers.