How Much Does It Cost to Start a Business in Maryland?
Last updated: March 2026
Maryland Business Overview
LLC Filing Fee
$100
Sales Tax Rate
6.0%
Minimum Wage
$15/hr
Cost of Living Index
128.7
Workers Comp
Required
Annual Report Fee
$300
Starting a Business in Maryland
Maryland businesses register with the Department of Assessments and Taxation. A trader's license is required for retail businesses.
Maryland has a graduated income tax with rates from 2% to 5.75% plus a county income tax that can add 3.2%. Corporate income tax is 8.25%.
Maryland's proximity to Washington DC creates strong demand for professional and government-contracting businesses. The suburban DC market commands premium pricing.
For official formation documents, visit the Maryland Secretary of State.
Startup Costs for 100 Business Types in Maryland
The table below shows estimated startup costs for every major business type, adjusted for Maryland’s cost of living index of 128.7. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $9,030 | $25,800 | $59,340 |
| Airbnb / Vacation Rental | Real Estate | $14,190 | $38,700 | $116,100 |
| Ambulance Service | Transportation & Logistics | $103,200 | $258,000 | $645,000 |
| App Development Company | Tech & Online | $12,900 | $38,700 | $103,200 |
| Architecture Firm | Professional Services | $25,800 | $70,950 | $167,700 |
| Auto Detailing Business | Automotive | $6,450 | $38,700 | $129,000 |
| Auto Repair Shop | Automotive | $96,750 | $258,000 | $645,000 |
| Bakery | Food & Beverage | $25,800 | $122,550 | $387,000 |
| Bar & Nightclub | Food & Beverage | $129,000 | $451,500 | $1,096,500 |
| Barbershop | Beauty & Personal Care | $19,350 | $83,850 | $225,750 |
| Beauty Supply Store | Beauty & Personal Care | $38,700 | $129,000 | $387,000 |
| Bookstore | Retail | $32,250 | $129,000 | $387,000 |
| Brewery / Microbrewery | Food & Beverage | $129,000 | $516,000 | $1,290,000 |
| Cannabis Dispensary | Specialty & Regulated | $160,605 | $428,280 | $1,606,050 |
| Car Wash | Automotive | $160,605 | $701,760 | $2,004,660 |
| Carpentry & Woodworking Shop | Construction & Trades | $13,545 | $36,120 | $90,300 |
| Catering Business | Food & Beverage | $15,480 | $68,370 | $167,700 |
| Chiropractic Office | Health & Wellness | $51,600 | $154,800 | $387,000 |
| Cleaning Business | Home Services | $1,935 | $14,190 | $47,730 |
| Clothing Boutique | Retail | $38,700 | $129,000 | $387,000 |
| Coffee Shop | Food & Beverage | $32,250 | $154,800 | $451,500 |
| Concrete Business | Construction & Trades | $32,250 | $83,850 | $193,500 |
| Consulting Business | Professional Services | $2,580 | $11,610 | $33,540 |
| Convenience Store | Retail | $64,500 | $361,200 | $967,500 |
| Courier & Delivery Service | Transportation & Logistics | $10,320 | $28,380 | $70,950 |
| Cybersecurity Firm | Tech & Online | $25,800 | $70,950 | $193,500 |
| Dance Studio | Childcare & Education | $25,800 | $103,200 | $322,500 |
| Daycare Center | Childcare & Education | $77,400 | $232,200 | $645,000 |
| Demolition Company | Construction & Trades | $38,700 | $103,200 | $258,000 |
| Dental Practice | Health & Wellness | $322,500 | $645,000 | $1,290,000 |
| Digital Marketing Agency | Tech & Online | $5,160 | $15,480 | $41,280 |
| E-Commerce Store | Tech & Online | $6,450 | $19,350 | $64,500 |
| Electrical Business | Home Services | $19,350 | $70,950 | $206,400 |
| Esthetics & Skincare Business | Beauty & Personal Care | $10,320 | $51,600 | $154,800 |
| Excavation Company | Construction & Trades | $64,500 | $167,700 | $451,500 |
| Financial Planning Practice | Professional Services | $25,800 | $70,950 | $167,700 |
| Flower Shop | Retail | $25,800 | $96,750 | $258,000 |
| Food Delivery Service | Food & Beverage | $12,900 | $67,080 | $167,700 |
| Food Processing Business | Food & Beverage | $96,750 | $322,500 | $967,500 |
| Food Truck | Food & Beverage | $58,050 | $154,800 | $258,000 |
| Freight Brokerage | Transportation & Logistics | $20,640 | $46,440 | $103,200 |
| Furniture Store | Retail | $64,500 | $258,000 | $774,000 |
| General Contracting Business | Construction & Trades | $25,800 | $70,950 | $167,700 |
| Ghost Kitchen | Food & Beverage | $25,800 | $77,400 | $193,500 |
| Gift Shop | Retail | $25,800 | $90,300 | $258,000 |
| Gym & Fitness Center | Health & Wellness | $64,500 | $322,500 | $1,290,000 |
| Hair Salon | Beauty & Personal Care | $19,350 | $96,750 | $322,500 |
| Handyman Business | Home Services | $2,580 | $12,900 | $42,570 |
| Home Health Care Agency | Health & Wellness | $51,600 | $167,700 | $387,000 |
| HVAC Business | Home Services | $25,800 | $90,300 | $258,000 |
| Ice Cream Shop | Food & Beverage | $25,800 | $96,750 | $258,000 |
| Insurance Agency | Professional Services | $19,350 | $51,600 | $116,100 |
| IT Services Business | Tech & Online | $19,350 | $51,600 | $129,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $32,250 | $116,100 | $322,500 |
| Landscaping Business | Home Services | $12,900 | $51,600 | $154,800 |
| Laundromat | Real Estate | $129,000 | $322,500 | $774,000 |
| Law Firm | Professional Services | $15,480 | $43,860 | $104,490 |
| Limousine & Car Service | Transportation & Logistics | $51,600 | $116,100 | $283,800 |
| Liquor Store | Retail | $64,500 | $232,200 | $645,000 |
| Marketing Agency | Professional Services | $6,450 | $23,220 | $64,500 |
| Martial Arts Studio | Childcare & Education | $25,800 | $90,300 | $258,000 |
| Meal Prep Business | Food & Beverage | $25,800 | $83,850 | $258,000 |
| Med Spa | Health & Wellness | $129,000 | $451,500 | $1,290,000 |
| Medical Practice | Health & Wellness | $193,500 | $516,000 | $1,290,000 |
| Mental Health Practice | Health & Wellness | $19,350 | $64,500 | $193,500 |
| Moving Company | Home Services | $38,700 | $129,000 | $387,000 |
| Music School | Childcare & Education | $12,900 | $64,500 | $193,500 |
| Nail Salon | Beauty & Personal Care | $25,800 | $116,100 | $322,500 |
| Painting Business | Home Services | $6,450 | $32,250 | $103,200 |
| Personal Training Business | Health & Wellness | $6,450 | $32,250 | $129,000 |
| Pest Control Business | Home Services | $12,900 | $51,600 | $154,800 |
| Pet Store | Retail | $38,700 | $129,000 | $387,000 |
| Pharmacy | Health & Wellness | $193,500 | $516,000 | $1,290,000 |
| Physical Therapy Clinic | Health & Wellness | $77,400 | $232,200 | $580,500 |
| Pizza Shop | Food & Beverage | $64,500 | $225,750 | $516,000 |
| Plumbing Business | Home Services | $19,350 | $64,500 | $193,500 |
| Podcast Production Company | Tech & Online | $2,580 | $7,740 | $23,220 |
| Preschool | Childcare & Education | $64,500 | $193,500 | $516,000 |
| Property Management Company | Real Estate | $13,545 | $30,960 | $70,950 |
| Real Estate Agency | Professional Services | $12,900 | $36,120 | $90,300 |
| Real Estate Investing (Rental) | Real Estate | $32,250 | $96,750 | $322,500 |
| Restaurant | Food & Beverage | $225,750 | $483,750 | $967,500 |
| Roofing Company | Home Services | $19,350 | $77,400 | $232,200 |
| SaaS Company | Tech & Online | $25,800 | $77,400 | $258,000 |
| Spa & Massage Therapy | Health & Wellness | $12,900 | $90,300 | $322,500 |
| Staffing Agency | Professional Services | $25,800 | $70,950 | $193,500 |
| Storage Unit Facility | Real Estate | $258,000 | $774,000 | $2,580,000 |
| Tattoo Shop | Beauty & Personal Care | $25,800 | $76,110 | $258,000 |
| Tax Preparation Business | Professional Services | $4,515 | $12,900 | $34,830 |
| Thrift Store | Retail | $25,800 | $96,750 | $258,000 |
| Tire Shop | Automotive | $64,500 | $193,500 | $516,000 |
| Towing Company | Automotive | $64,500 | $193,500 | $516,000 |
| Trucking Company | Transportation & Logistics | $38,700 | $103,200 | $258,000 |
| Tutoring Business | Childcare & Education | $2,580 | $30,960 | $129,000 |
| Used Car Dealership | Automotive | $64,500 | $258,000 | $774,000 |
| Vape Shop | Retail | $32,250 | $96,750 | $258,000 |
| Web Development Agency | Tech & Online | $4,515 | $15,480 | $42,570 |
| Welding Business | Construction & Trades | $19,350 | $51,600 | $129,000 |
| Winery | Food & Beverage | $193,500 | $982,980 | $3,870,000 |
| Yoga Studio | Health & Wellness | $19,350 | $103,200 | $258,000 |
Most Popular Business Types in Maryland
Restaurant
Food & Beverage
$225,750 – $967,500
Cleaning Business
Home Services
$1,935 – $47,730
Real Estate Agency
Professional Services
$12,900 – $90,300
Law Firm
Professional Services
$15,480 – $104,490
Consulting Business
Professional Services
$2,580 – $33,540
IT Services Business
Tech & Online
$19,350 – $129,000
Licenses & Permits in Maryland
General Business License
Maryland requires a Trader's License for most retail and wholesale businesses, issued by the Clerk of the Circuit Court in each county. Businesses must also register their entity with the Maryland Department of Assessments and Taxation (SDAT) and register with the Comptroller of Maryland for sales and use tax. Service businesses may not need a Trader's License but still need to register with SDAT. Maryland's bFile portal allows online registration for tax accounts.
Industry-Specific Licenses
- Food Service Facility Permit — Maryland Department of Health — Environmental Health Bureau or County Health DepartmentCost: $75-$600 • Renewal: Annual
- Home Improvement Contractor License — Maryland Home Improvement CommissionCost: $200-$500 • Renewal: Biennial
- Cosmetology Shop License — Maryland State Board of CosmetologistsCost: $50-$200 • Renewal: Biennial
- Real Estate Broker License — Maryland Real Estate CommissionCost: $175-$400 • Renewal: Biennial
- Child Care Center License — Maryland Office of Child CareCost: $50-$200 • Renewal: Annual
- Retail Alcoholic Beverage License — Maryland Alcohol and Tobacco Commission or Local BoardCost: $300-$4,000 • Renewal: Annual
- Assisted Living Facility License — Maryland Department of Health — Office of Health Care QualityCost: $200-$1,000 • Renewal: Annual
- For-Hire Transportation Permit — Maryland Public Service CommissionCost: $100-$500 • Renewal: Annual
Home-Based Business Rules
Maryland's 23 counties and Baltimore City each regulate home-based businesses through their own zoning codes. Montgomery County allows home occupations with restrictions on customer visits, employees, and signage. Baltimore City allows registered home-based businesses in most residential zones. Maryland's proximity to Washington DC creates a large market for home-based consulting, government contracting, and professional service businesses.
Maryland Business Resources
SBA District Office
Maryland SBA District Office — Baltimore
Secretary of State
https://dat.maryland.gov/businessesZoning Information
Maryland counties and cities manage zoning. The Baltimore metro area and DC suburbs have detailed commercial zoning with mixed-use overlay districts.
Health Department Notes
Food service businesses need a food service facility license from the local health department. Montgomery County and Baltimore have additional requirements.
Workers Compensation
Required for all employers. Maryland requires approved policy through the Injured Workers Insurance Fund or a private carrier.