Maryland General Contractor License: What Applies and What Does Not

Does a contracting business need a license in Maryland?

Maryland issues 3 license classes for general contractors.

Maryland runs two statewide schemes and no dollar floor under either. Any person doing construction business in the State, which means new home and commercial work, must hold a construction license issued by the clerk of the circuit court under state law. Work on an existing residence, or an apartment building of three or fewer units, is home improvement instead and is licensed by the Maryland Home Improvement Commission, whose licensee is not required to hold the clerk's construction license.

The contracting business itself must be licensed or registered, not only the people doing the work.

The construction license under state law is held by the person doing construction business, which includes a company, and a company incorporated or headquartered outside Maryland must also hold a nonresident construction license. The MHIC home improvement license runs the other way: each licensed business must have an individual who holds the MHIC license and meets the requirements for licensure.

This records what Maryland publishes, not a determination about your business. Scope, thresholds and local requirements are set by the issuing body, so confirm with them before you bid or file.

Verified 2026-09-03 against the primary source listed under Sources.

What the LLC has to do first

Where the state licenses the company rather than only the individual, the LLC has to exist before the license application can name it.

The entity filing is separate from anything the license requires. In Maryland it is made with the Maryland State Department of Assessments and Taxation. File directly with the state here. The order matters wherever the license is issued to the company rather than to a person: the entity has to exist before an application can name it.

Forming an LLC as a contracting business in Maryland covers the filing itself, step by step.

Insurance Maryland general contractors are asked to show

General liability cover is the item most often demanded before a contractor license application is accepted or a job is awarded, and the certificate has to name the entity that holds the license.

We do not publish Maryland premium figures for this trade, so nothing here is a quote. Our business insurance guide for general contractors covers what each policy does and does not pay for.