Generally, a business which sells goods or merchandise within Maryland must obtain a trader's license from the Clerk of the Court by May 1 of each year. The fee for the license is based on the value of the inventory of the business which is certified by the State Department of Assessments and Taxation (SDAT) based on information listed in the annual personal property return

 Sometimes businesses requiring a trader's license experience problems in obtaining one. Most of these problems are the result of one or more of the following six situations:  

1) Failure to file a personal property return. Most businesses in Maryland must file a personal property return with the State Department of Assessments & Taxation by April 15 of each year. This return must be filed and assessed before a trader's license can be obtained by the business for the following year. To check on the status of a return, call 410-767-1170 for a corporation, limited liability company (LLC), limited partnership (LP), or limited liability partnership (LLP). For sole proprietors and general partnerships, call 410-767-4991.
 

2) Failure to report commercial inventory. A business that requires a trader's license must report commercial inventory (merchandise held for sale or resale) on its personal property return. If commercial inventory was not reported, an amended return must be filed with the State Department of Assessments and Taxation reporting the average inventory held by the business during the preceding calendar year. If the business does not possess or own commercial inventory, then it does not need a trader's license.
 

3) Unpaid personal property taxes. All businesses which own taxable personal property are required to pay taxes on this property based on the return mentioned above. These taxes are billed by the County and Town Treasurer/Finance Offices and must be paid before a trader's license can be obtained by the business.
 

4) Unpaid late filing penalty. When the personal property return mentioned above is filed late, a penalty is assessed as required by law. This penalty must be paid to the Personal Property Division of SDAT before the trader's license can be issued to the business. To determine whether a penalty is due, call 410-767-1170 for all entities other than proprietors and general partner- ships. For these entities, call 410-767-4991.
 

5) Business failed to register with SDAT. Before a trader's license can be issued, a business must have a Department identification number. This is given at the time of incorporation, qualification, registration, or formation and functions as the audit control number on future trader's license applications. For inquiries concerning forming a corporation, LLC, LLP, or LP call 410-767-1340. Sole proprietors and general partnerships should call 410-767-4991 to apply for a Department identification number.
 

6) Forfeited status. This category includes domestic and foreign corporations, LLCs, LLPs, or LPs whose legal right to conduct business as that entity has been revoked. Forfeiture occurs when a business fails to:

If forfeited, a trader's license applicant should call 410-767-1340 for information and instructions.

 
A new business applying for a first time license:
1) must be registered with SDAT as mentioned above, and  
2) present the SDAT Department identification number to the Clerk of the Court in the county where the business will be located.

If you have questions concerning the need for a trader's license, please call the
License Bureau of the Comptroller's Office at 410-260-6240 or toll free 1-866-239-9359.

Revised: October 2007