How to get a Maryland Home Improvement Contractor License

How do I get a home improvement contractor license in Maryland?

 Gather supporting application documents.  

Before applying for your contractors license, you'll need to have 2 years of experience in home improvement contracting. You'll need to submit proof of your involvement in home improvement work, construction, or education in a related field. 

If you are representing a corporation, you'll need to submit a few documents that you can get from the Maryland Department of Assessments and Taxation. You will need to provide your corporations articles of incorporation, along with a Certificate of Good Standing which you can apply for with a request form. This form can be mailed to General Accounting Division at the following address. 

General Accounting Division
Good Standing Certificate
Administrative Services 
P.O. Box 746 
Annapolis, MD 21404

If you're using a trade name, verify with the Maryland Home Improvement Commission that your name is available to use. Once you have confirmed its availability, register the name with the Maryland Department of Assessments and Taxation. A certificate of trade name registration must be submitted with your application. 

2. Purchase liability insurance. 

You must file proof of current liability insurance in the amount of $50,000 with your application. If you cancel your liability insurance, you'll need to give the Home Improvement Commission a minimum of 10 days notice before the effective date of cancellation. The insurance must be in effect at all times. 

3. Meet financial solvency requirements.

You'll need to provide proof of financial solvency by submitting a Contractors Personal Financial Statement form along with your application. You must meet the Maryland Home Improvement Commissions guidelines based upon your personal assets; business assets are not considered when your financial solvency evaluated. 

Financial solvency is required because a Guaranty Fund of up to $30,000 will compensate a homeowner in the event that you as the contractor performs unworkmanlike, inadequate, or incomplete work. 

4. Purchase a Maryland home improvement contractor surety bond (if applicable). 

If you don't meet the financial solvency requirements outlined above, you'll need to purchase and file a $30,000 Maryland Home Improvement Contractor Bond to guarantee your compliance with the Annotated Code of Maryland, Business Regulation Article, Title 8. Note that the surety bond amount increased from $20,000 to $30,000 in October 2022.

You can apply for your Maryland Home Improvement Contractor Bond online 24/7. A quick application review will determine your personal pricing, which starts at $394 for the state-required 2-year term. 

5. Take the licensing exam. 

Before taking your exam you can attend optional (but recommended) preparatory courses that most community colleges offer. 

To register for your exam, contact PSI Exams Online or call 1(800)367-1565. The PSI Examination Bulletin contains extensive information on study guides, registration, and exam content. 

The exam itself is given daily Monday through Friday at Maryland's PSI exam centers. The exam is 2 hours long and taken by computer. The exam fee is $63. You need a minimum score of 70% to pass. If you don't pass, you must wait at least 30 days before you can reapply. 

Once you pass your exam, you'll receive a license application package containing your registration number so you can apply for your home improvement contractor license. 

6. Apply for your license. 

Once you have your license application package from the Home Improvement Commission, you can apply for your license online using the provided registration number. 

After your application is submitted, it will take 2-3 weeks for approval and can take longer if your application is incomplete or incorrect. You'll receive a paper license in the mail within 10 days of your application's approval. Your license period will last 2 years from the original licensure date. 

How do I renew my Maryland home improvement contractor license?

You'll receive a notice that your contractor license is expiring along with renewal instructions about 60 days before it expires. You can renew your license online through the Maryland Department of Labor. If you prefer a hardcopy version of the license renewal form, fax a request to 1(410)-962-8482 and send that completed form back along with a check or money order. Online renewals can be paid by credit card. Contact the Maryland Home Improvement Commission if you don't get an expiration notice for your license within 30 days of its expiration date.