Maryland

Cleaning Business Licensing in Maryland (2026)

Last updated Q2 2026 · Authored by the Opora Editorial Team · Cited statute: Md. Code, Business Regulation Article §17-1801 et seq. (Trader's License); Md. Code, Tax-General Article §11-101 et seq. (Sales & Use Tax); Md. Code, Labor & Employment §9-201 et seq. (Workers' Compensation); COMAR 09.12 (WC Regulations)

Maryland's regulatory framework for commercial cleaning businesses is shaped by three defining features: it operates a federally-approved State OSHA plan called MOSH that imposes standards sometimes more stringent than federal OSHA; it taxes commercial cleaning services; and its Home Improvement Commission (MHIC) licensing requirement — while technically aimed at residential work — has compliance implications for cleaning companies that also perform cleaning in residences or individual condominium units. Understanding where MHIC applies (and where it does not) saves Maryland cleaning companies from inadvertent licensing violations.

MOSH: Maryland's plan-state OSHA and its implications for cleaning

Maryland operates one of 28 OSHA-approved State Plans in the country through the Maryland Occupational Safety and Health (MOSH) program, administered by the Division of Labor and Industry. MOSH is located at 10946 Golden West Drive, Suite 160, Hunt Valley, MD 21031; telephone (410) 527-4499. MOSH has jurisdiction over all private and public sector workplaces in Maryland (except maritime employment, military base employment, USPS contractors, and aircraft cabin crewmembers). Notably, MOSH extended its jurisdiction to cover state and local government employers — a category not covered by federal OSHA in non-plan states.

MOSH has adopted several standards that go beyond federal OSHA requirements. Effective September 30, 2024, MOSH finalized its Heat Illness Prevention Standard, incorporated as COMAR § 09.12.32. This standard requires cleaning companies with outdoor or non-air-conditioned work environments (e.g., exterior window washing, outdoor pressure washing) to establish written heat illness prevention plans, provide cooling areas, ensure acclimatization periods for new employees, and conduct supervisor training. Violation of the Heat Standard can result in citations with penalties up to $15,625 per serious violation. MOSH also enforces stricter confined space and personnel platform standards unique to Maryland. All Maryland cleaning employers must report fatalities within 8 hours and in-patient hospitalizations within 24 hours to MOSH at (410) 527-4499.

Maryland Home Improvement Commission (MHIC): when cleaning companies need this license

The Maryland Home Improvement Commission (MHIC) licenses and regulates contractors who perform "home improvement" work, defined as alteration, remodeling, repair, or replacement of a building or part of a building used as a residence, including individual condominium units (Title 8, Business Regulation, Annotated Code of Maryland). Residential cleaning services alone do not require an MHIC license. However, if a cleaning company also performs tasks that cross into home improvement — applying sealants to floors, performing water damage mitigation, or doing any repair work on a residential property — the MHIC license becomes mandatory. MHIC does not cover work on commonly-owned areas of condominiums or buildings containing four or more single-family units (those are commercial). The MHIC contractor's license requires: at least two years of relevant experience, a credit report demonstrating financial solvency, $50,000 in liability insurance, passage of an examination administered by PSI Exams, and a license fee of $370. The MHIC Guaranty Fund assessment for new contractors is $100; renewals are $175 every two years. Address: 100 S. Charles Street, Tower I, Baltimore, MD 21201; telephone (410) 230-6231.

Sales tax on commercial cleaning services

Maryland imposes sales tax on cleaning of commercial or industrial buildings and on commercial cleaning and laundering of textiles. The Maryland Sales and Use Tax (Maryland Code Ann., Tax-General § 11-101 et seq.) subjects commercial cleaning services to the 6% state sales tax. Residential cleaning services are not taxable. This distinction is operationally important for cleaning companies with mixed residential/commercial portfolios: invoices must segregate taxable commercial cleaning charges from nontaxable residential cleaning charges. Maryland sales tax registration is through the Comptroller of Maryland, 80 Calvert Street, Annapolis, MD 21401; telephone 1-800-638-2937. Maryland has no local sales tax; the 6% rate is uniform statewide. Unlike several neighboring states, Maryland does not require local jurisdictions to administer separate sales tax accounts.

Workers' compensation in Maryland: private market coverage

Maryland requires workers' compensation coverage for virtually all employers with one or more employees (Maryland Code Ann., Labor and Employment § 9-401). Maryland is a competitive (non-monopolistic) state — coverage is purchased from private carriers or through the Chesapeake Employers' Insurance Company (formerly the Injured Workers' Insurance Fund — IWIF), which serves as the insurer of last resort in Maryland and is a state-created entity that competes with private insurers. NCCI class code 9014 applies to commercial janitorial payroll. The Workers' Compensation Commission (WCC), 10 East Baltimore Street, Baltimore, MD 21202; telephone (410) 864-5100, adjudicates disputed claims. Employers must file the First Report of Injury (WCC Form C-1) within 10 days of receiving notice of a lost-time injury. Maximum weekly temporary total disability (TTD) benefits in Maryland are calculated at two-thirds of the employee's average weekly wage, subject to a statewide maximum that is adjusted annually (approximately $1,500/week in 2024). Maryland also imposes employer penalties for failure to carry required workers' compensation insurance — a civil fine of up to $5,000 plus personal liability for all benefits owed to injured employees.

Business registration and the Maryland Business Express portal

Maryland cleaning companies register their business entities through Maryland Business Express, the unified online portal operated by the Maryland Department of Assessments and Taxation (SDAT). Domestic LLC formation costs $100; domestic corporation formation costs $120. Annual report and personal property return filings are due April 15 of each year; failure to file results in forfeiture of the entity's good standing and ultimately charter forfeiture. Trade names must be registered with SDAT ($25 per trade name). Out-of-state (foreign) cleaning companies must file a Foreign Qualification certificate ($100 for LLCs; $100 for corporations) before conducting business in Maryland. The SDAT's online verification system allows clients and government agencies to confirm a company's good-standing status in real time.

Unemployment insurance: Maryland Department of Labor

Maryland employers must register with the Maryland Department of Labor's Division of Unemployment Insurance (1100 N. Eutaw Street, Baltimore, MD 21201; telephone 410-767-2412) within 20 days of first payroll. Maryland's taxable wage base is $8,500 per employee per year — relatively low, which helps keep UI tax costs manageable for cleaning companies with many employees. New employer rates for most industries are 2.60% for the first few years. Experience-rated employers can receive rates as low as 0.30% or as high as 7.5%. Quarterly wage and tax filings are made electronically through the BEACON One-Stop portal. Maryland also requires employers to use E-Verify — but only for public contractors (state government contracts) under SB 831 (2011). Private cleaning companies in Maryland have no state E-Verify mandate and use voluntary I-9 federal verification.

Local licensing: Baltimore City and Montgomery County

Baltimore City requires a One-Stop Business License from the Baltimore City Finance Department. Cleaning companies in Baltimore City must obtain a trading license ($15–$500 depending on inventory/gross receipts). Montgomery County requires a business license from the County Clerk of Circuit Court for contractors doing business in the county; the annual fee is modest ($15–$100 depending on category). Prince George's County and Howard County similarly require business licenses from their respective circuit court clerks. Unlike most states, Maryland county-level business licensing is administered through circuit courts rather than county revenue departments — a Maryland-specific administrative distinction. Cleaning companies operating in multiple Maryland counties should map their county-by-county license obligations at the outset.

Chemical regulations and PFAS compliance

Maryland has enacted several chemical regulations affecting cleaning products. The Maryland Safe Cleaning Products Act (2022) does not yet impose direct requirements on BSCs, but Maryland Department of the Environment (MDE) has been studying restrictions on PFAS-containing cleaning and floor-care products as part of broader PFAS regulation (Maryland Code Ann., Environment § 7-260 et seq.). The Maryland PFAS Law (2021 amendments) restricts PFAS in certain product categories including food packaging, carpets, and some textiles; BSCs using PFAS-containing stain-repellent treatments on carpets may need to track compliance. Maryland's Green Procurement Program, applicable to state-contracted cleaning services, increasingly requires the use of Green Seal GS-42 certified cleaning products. Cleaning companies pursuing state contracts should maintain product documentation demonstrating Green Seal compliance or equivalent.

Independent contractor classification under Maryland law

Maryland generally applies a common-law control test for independent contractor classification in most contexts, but Maryland's Workplace Fraud Act (Maryland Code Ann., Labor and Employment §§ 3-901 through 3-915) — specifically targeting the construction industry — creates a presumption that workers on construction sites are employees unless the hiring party can satisfy an independent-contractor test. Commercial cleaning work that occurs on active construction sites (post-construction cleanup, restoration cleaning) may fall within the Workplace Fraud Act's scope. For standard commercial cleaning operations, Maryland uses the IRS common-law control test, and DLLR/DOLCH has investigated cleaning companies for misclassification when workers' compensation and UI taxes were being avoided through improper IC arrangements.

Primary sources

Disclaimer & review notice

This content is maintained by the Opora editorial team and last reviewed in Q2 2026. State licensing rules, fees, and tax treatments change frequently — verify current details directly with the named state agency before relying on any specific dollar amount or threshold. Opora does not provide legal or tax advice; this page is a starting point for further due diligence.