Garrett County Business License: Deep Creek Lake Rentals, Zoning and Local Rules
Garrett County Business License: Deep Creek Lake Rentals, Zoning and Local Rules
If you plan to rent a house near Deep Creek Lake to overnight guests, Garrett County does not handle this through one general business license. Short-term rentals run through the Transient Vacation Rental Unit (TVRU) process, which combines a zoning permit, a registration, a license, and a health fee when the property has a hot tub, indoor pool, water sampling or a septic system. This guide covers that sequence, the county fees we could verify, the points we could not verify, and the Maryland filings that usually come with it. If you are searching for Garrett County permits or Garrett County short-term rental rules, this is the place to start.
The county figures below come from the county's published procedure. That procedure form is undated, so confirm every fee with the office before you pay.
Garrett County fees at a glance
| Item | Amount | Who handles it |
|---|---|---|
| Step 1 zoning permit | $50 | Department of Planning and Land Management |
| TVRU registration (one time) | $50 | Office of Licensing and Enforcement |
| TVRU license (every two years, may be prorated) | $200 | Office of Licensing and Enforcement |
| Health fee for hot tub, indoor pool, water sampling or septic | $150 | Garrett County Health Department |
| Trader's license (if required) | Confirm with the Clerk | Clerk of the Circuit Court |
| LLC annual report (state) | $300, due April 15 | SDAT |
Do you need a TVRU license?
If you rent a dwelling unit for short stays in the Deep Creek Lake area, expect to go through the TVRU process. The county's Department of Planning and Land Management handles it through the Office of Licensing and Enforcement at 301-334-1920. Call before you buy the property or sign a lease. Ask two questions first: whether the home is an existing dwelling unit that is changing use (the Step 1 permit assumes this), and what the bear-proof trash and parking requirements are for that property.
Step 1: Zoning permit ($50)
When an existing dwelling unit changes use to a TVRU, the county charges a $50 zoning permit. Submit it together with your TVRU application and your accommodation tax application.
Step 2: Inspection, registration and license
Step 2 begins with an inspection, which is arranged through your rental agent. After the inspection, the county charges:
- $50 TVRU registration fee, paid once.
- $200 TVRU license fee, renewed every two years. The office may prorate the fee, so ask how it applies to the month you plan to open.
Health Department fee ($150)
The Garrett County Health Department charges $150 for properties with hot tubs, indoor pools, water sampling or septic systems. Lake homes often have at least one of these features, so check early. Call 301-334-7760 to confirm whether a property with several of these features pays the fee once or per feature.
Bear-proof trash and parking: not yet verified
The TVRU ordinance sets requirements for bear-proof trash and parking. We did not read the ordinance text, so this guide does not state the minimums. Ask the Office of Licensing and Enforcement for the current ordinance and the parking and trash requirements in writing before you finalize the driveway, the trash enclosure or the guest parking plan.
Unverified: the bear-proof trash and parking minimums. Confirm both with Garrett County before you rely on them.
Set up the entity: LLC or sole ownership
Many owners hold a rental house in a limited liability company. A Maryland LLC is formed by filing Articles of Organization with the State Department of Assessments and Taxation (SDAT), Charter Division. The filing fee is $100. Most owners file through Maryland Business Express. Keep these rules in mind:
- Name: The name must not be misleadingly similar to another LLC, corporation, trade name, limited partnership or limited liability partnership on file with SDAT. It must include Limited Liability Company, L.L.C., LLC, L.C. or L C.
- Resident agent: Maryland calls this a resident agent. The agent can be a Maryland citizen over 18, a Maryland corporation or a Maryland LLC, with a Maryland street address. A P.O. box does not qualify. The agent must sign the Articles of Organization, and you need the agent's consent before filing. Changing the agent or the agent's address costs $25 per entity.
- Name reservation (optional): $25 holds a name for 30 days. Use the SDAT name reservation form.
- Annual report: $300, due April 15 each year. The filing is the Annual Report and Business Personal Property Return (Form 1). Request an extension at pprextensions.dat.maryland.gov.
- Speed: A standard LLC filing is reviewed during the second calendar month after submission. Expedited review costs an extra $50 and takes 7 to 14 business days. Online rush costs an extra $325, with review within 3 hours if you submit by 2:30 p.m. on a business day.
If guests will book under a name other than the LLC's legal name, file a Trade Name Registration with SDAT. The county does not handle it. The fee is $25 standard, or $75 total with the $50 expedited fee. The form is available at the SDAT trade name application.
Taxes you will deal with
This section is informational only. Your tax position depends on how you hold the property and where you live.
Maryland income tax
An ordinary LLC is a pass-through entity for state income tax. Owners report profits on their Maryland personal returns. The state rate is graduated from 2% to 6.5%, plus a county or Baltimore City local rate. Garrett County's local income tax rate is 2.65% for calendar year 2026. Maryland imposes no separate franchise tax on ordinary LLCs, so the recurring state cost is the $300 annual report, plus county business personal property tax if the entity reports taxable property. If you live outside Maryland, ask a CPA how the nonresident rules apply to your rental income. We have not verified those rules here.
County business personal property tax
SDAT's 2025-26 table shows a $0 county business personal property tax rate for Garrett County. Furniture and equipment in the rental should not generate county tax at that rate. Utility property is still taxed, at $2.55 per $100. Rates change, so confirm the current year's figure before you complete the annual return.
Hotel rental tax and admissions tax
The county's published rates are an 8% hotel rental tax and a 6% admissions tax, according to the Department of Legislative Services 2026 tables. Because the accommodation tax application is part of your TVRU filing, ask the county how the hotel rental tax applies to a rental house, who collects it, and when it is remitted.
State sales tax
Maryland's state sales tax rate is 6%. Whether a short-term lodging stay is subject to the state sales tax, and whether you need a sales tax permit for it, must be confirmed with the Comptroller of Maryland. The Sales and Use Tax License is obtained through the Combined Registration Application at Maryland Business Express.
Trader's license: check before you assume
Most businesses that sell goods need a trader's license from the Clerk of the Circuit Court in their county. The license year runs May 1 through April 30. You must first obtain the Comptroller's free Sales and Use Tax License, and the Clerk cannot issue a trader's license if you owe personal property tax or have missing SDAT filings. This guide cannot settle whether a rental house needs a trader's license. If you also sell goods to guests, such as firewood or branded merchandise, plan on getting one. Ask the Garrett County Clerk of the Circuit Court directly.
Enterprise zones
The Maryland Department of Commerce lists three Garrett County enterprise zones. Southern Garrett and Keyser's Ridge are among them, and they expire in 2027 and 2028. Enterprise zones matter most if you are building or buying a business property rather than a personal second home. Confirm eligibility and terms with Commerce before you count on any benefit.
Recommended order of operations
- Call the Office of Licensing and Enforcement at 301-334-1920 to confirm zoning, the TVRU path, and the bear-proof trash and parking requirements.
- Decide whether to use an LLC. If you do, file the Articles of Organization with SDAT, with a Maryland resident agent who has signed and consented.
- File a Trade Name Registration if guests will see a name other than the LLC's legal name.
- Obtain the Comptroller's Sales and Use Tax License if it applies, then the trader's license if the Clerk requires one.
- Submit the $50 zoning permit with your TVRU and accommodation tax applications.
- Schedule the inspection through your rental agent.
- Pay the $50 registration and $200 license, plus the $150 health fee if it applies to your property.
- Calendar April 15 for the LLC annual report, and separately track the TVRU license renewal, which comes every two years.
Mistakes that cost owners time
- Treating the $200 license as the full county cost. Add the $50 zoning permit, the $50 registration, and the $150 health fee where it applies.
- Missing the April 15 annual report. Missing SDAT filings can block a trader's license.
- Listing the property for rent before zoning is confirmed.
- Using a P.O. box as the resident agent address.
Who to contact
| Office | Contact | Use it for |
|---|---|---|
| Garrett County Office of Licensing and Enforcement | 301-334-1920 | TVRU zoning, registration and license |
| Garrett County Health Department | 301-334-7760 | Hot tub, indoor pool, water sampling and septic fee |
| SDAT Charter Division | dat.maryland.gov | LLC filing, annual report, trade names |
| Comptroller of Maryland | marylandcomptroller.gov | Sales tax and income tax questions |
| Clerk of the Circuit Court, Garrett County | Contact through the county | Trader's license |
| Maryland Small Business Development Center Network | marylandsbdc.org | Setup questions and planning help |
When to get professional help
Talk to a Maryland attorney before you form an LLC with multiple owners, sign a management agreement, or respond to a zoning enforcement notice. Talk to a CPA about pass-through reporting, nonresident owner rules, and how the hotel rental tax affects your numbers.
Disclaimer: This article is general information about forming a business and local rules in Maryland. It is not legal, tax or zoning advice. Fees, rates and procedures change, and some items above are unverified. Confirm each figure with the agency named before you act.