Maryland License Lookup: Verify a Contractor, Trade or Business License

Before you sign a contract, pay a deposit, or hire someone to work on your property, confirm their license yourself. A Maryland license lookup is not one search. The records are split across three systems. Contractors and most trades are licensed through the Department of Labor (DLLR). Business entities are registered with the State Department of Assessments and Taxation (SDAT). Trader's licenses for businesses that sell goods are issued by the clerk of the circuit court in each county. Knowing which system holds which record is most of the work, and a single lookup usually takes only a few minutes once you have the right name.

This guide explains where to search, what each database covers, how to read the results, and what the MHIC Guaranty Fund does and does not protect.

Which Maryland database holds which license

Use this table before you start searching. It shows where each type of record is kept.

License or record	Where to search	Agency
MHIC home improvement contractors and salespersons	Department of Labor License Search (labor.maryland.gov)	DLLR, Maryland Home Improvement Commission
Electricians, plumbers, HVACR, cosmetologists, real estate, home inspectors	Department of Labor License Search (labor.maryland.gov)	DLLR
Business entities (LLCs, corporations, registered trade names)	SDAT Business Entity Search	SDAT, Charter Division
Trader's and other clerk-issued business licenses	Maryland Judiciary Business Licenses search (jportal.mdcourts.gov), linked from circuit court clerk pages	Clerk of the Circuit Court in the county
Sales and use tax registration	Confirm directly with the Comptroller of Maryland	Comptroller of Maryland

Two of these sources need a caveat. The Judiciary's business license search is linked from individual clerk pages, such as Worcester County's, but we have not verified that it covers every county in Maryland. Confirm any clerk-issued license directly with the clerk of the circuit court in the county where the business operates. Likewise, confirm sales tax registration status with the Comptroller rather than relying on a search result you cannot verify.

Step-by-step: how to run the lookup

1. Get the exact legal name, license number and address. Ask the contractor or business for all three in writing. A company may operate under a trade name that differs from its legal name, and the license is usually held in the license holder's name.
2. Search the Department of Labor License Search for trade licenses. Start with the business or individual name. If you get no match, try the license number or the individual's name. A company name often does not match the person who holds the license.
3. Read the full record, not just the hit. Check the license type, the status, and the expiration date. A license for one trade does not cover another. An MHIC contractor license does not authorize plumbing or electrical work, and those trades have their own DLLR licenses.
4. Search SDAT for the business entity. Confirm that the LLC or corporation exists and that its registered name matches the name on your contract. An entity search proves the company is registered. It does not prove the company holds a trade or clerk-issued license.
5. Check clerk-issued licenses if the business sells goods. Search the Judiciary's business license listing, then confirm with the clerk of the circuit court for that county.
6. Confirm sales tax registration if the business sells taxable goods. Ask the business for its sales tax registration and confirm it with the Comptroller.
7. Save a dated printout or screenshot. If the license is later disputed, you will want proof of what the record showed when you checked it.

Verifying a home improvement contractor with MHIC

The Maryland Home Improvement Commission licenses home improvement contractors and salespersons. When you check a contractor, confirm two things: the contractor's business is currently licensed, and any salesperson who solicited the job is also licensed. A contractor who sends a salesperson to your home should be able to show you that person's license record.

Be careful with license numbers printed on a truck, a business card or a website. A number is only useful after you find it in the DLLR search and confirm that the name, type and status match what the contractor told you. If the number does not return a matching record, treat that as a warning sign and ask for an explanation before you sign anything.

What the MHIC Guaranty Fund covers

The MHIC Guaranty Fund compensates homeowners for actual monetary losses caused by a licensed contractor's poor workmanship or failure to perform. Know the limits before you rely on it:

• Payment limit: up to the amount you paid the contractor, with a cap of $30,000 per claim.
• Proration: if total claims against one contractor exceed $250,000, payouts are prorated.
• Licensed work only: the fund covers work performed by licensed contractors. Unlicensed work is not covered, which is why the license lookup matters.
• How it is funded: contractors pay a $100 assessment at original licensing and $175 at renewal.

The fund covers monetary losses. It does not guarantee that a project will be finished on time or to your satisfaction. Confirm the current claim procedure, eligibility rules and filing deadlines with MHIC through DLLR before you need them.

Business license search: entity versus trader's license

Maryland has no single general state business license. Many people search for one and come up empty, because the question is really two questions. The first is whether the business is a registered entity. The second is whether it holds any license required for what it sells.

The SDAT entity search answers the first question. Articles of Organization for an LLC or Articles of Incorporation for a corporation are filed with SDAT. A registered entity is not the same as a licensed business, however, so an SDAT result alone does not show that the business may sell what it sells.

For goods sellers, the common local requirement is a trader's license from the clerk of the circuit court. Key facts:

• The license year runs May 1 through April 30.
• Growers and manufacturers are exempt from the trader's license.
• A free Sales and Use Tax License from the Comptroller, obtained through the Combined Registration Application, is required before the clerk will issue a trader's license.
• The clerk cannot issue a trader's license if the applicant owes personal property tax or has missing SDAT filings.

That last point is useful in a lookup. A business that is registered with SDAT but has no trader's license may have an unfiled annual report or an unpaid personal property tax. Ask the business about it before you buy or sign a lease.

Sales tax registration

Maryland's state sales tax rate is 6%. A business that sells taxable goods must hold a sales tax registration. The Sales and Use Tax License is free and is obtained through the Combined Registration Application, which you can reach from the Maryland Business Express taxes and insurance page. To confirm an existing registration, contact the Comptroller of Maryland directly. A seller who cannot show a registration number for a taxable sale should be asked to explain before you pay.

When you cannot find a license

A search that returns no match does not always mean the person is unlicensed. Common causes include:

• The name you searched does not match the name on the license, such as a trade name versus a legal name.
• A recent renewal or new license has not yet appeared in the database.
• The person works under a different license type than the one you assumed.
• The work or sale falls under an exemption, such as the growers and manufacturers exemption from the trader's license.

Do not assume any of these explanations. Ask the business for the exact license number and legal name in writing, then confirm the record with the agency that issues it. If the business cannot produce a verifiable license for work that requires one, do not sign, and do not pay a deposit. A business that asks for cash before a license is confirmed is a serious warning sign.

Pre-hire license checklist

• Exact legal name, license number and address received in writing
• Contractor or trade license found in the DLLR License Search, with type, status and expiration date matching
• Any salesperson on the job confirmed as licensed
• Business entity confirmed in the SDAT Business Entity Search, with the name matching your contract
• Trader's license confirmed with the clerk of the circuit court where the goods are sold, if applicable
• Sales tax registration confirmed with the Comptroller for taxable sales
• Dated printouts or screenshots saved with your contract file

Common questions

Is an SDAT registration the same as a business license?

No. SDAT registration shows the entity exists and is on file. It does not confirm that the business holds a trade license or a clerk-issued trader's license.

Does a contractor license cover my electrical or plumbing work?

Not automatically. Electricians, plumbers and HVACR technicians are licensed through DLLR under their own license types. Check that the person doing each trade holds the matching license.

Where do I report a license problem?

Report it to the agency that issued the license: DLLR for contractor and trade licenses, SDAT for entity filings, and the clerk of the circuit court for trader's licenses. Confirm the current complaint process with the agency before you file.

Disclaimer: This guide is general information about how to look up licenses in Maryland. It is not legal or tax advice. Licensing rules, fees and procedures change, and the agencies named here are the final authority on any record. For a contract dispute, a tax question, or a claim against a contractor, talk with a qualified Maryland attorney or certified public accountant before you act.