Commercial Compliance Hub

7 permits · verified 2026-09-06

What permits do you need to open a contractor or trade in Gaithersburg?

In short

A contractor or trade in Gaithersburg, MD has 3 permits that apply to every business of this type, plus 4 more that depend on your premises, signage or how you are set up. Clerk of the Circuit Court for Montgomery County charges $15 a year, flat for the trader's licence. 1 of the 7 are charged as a range or formula rather than a flat fee. Verified 2026-09-06 against the issuing agencies’ published fee schedules.

The permits at a glance

Permits required, with issuing agency, fee, renewal term and the date each record was last verified against its source
Trader's LicenceClerk of the Circuit Court for Montgomery County$15 a year, flatannual2026-09-06
Use and Occupancy PermitCity of Gaithersburg Planning & Code Administration$150 application fee for the 0–5,000 sq ft tier, plus a 10% automation fee on the totalissued once per qualifying occupancy2026-09-06
Commercial Construction/Improvement PermitCity of Gaithersburg Planning & Code AdministrationApplication fee tiered by size for projects under $500,000 — $125 (0–750 sq ft), $175 (751–1,999 sq ft), $275 (2,000+ sq ft); $1,100 flat for projects $500,000 and over. Building permit fee (includes 2 plan reviews) is $0.30 per sq ft or 1.50% of project cost, whichever is greater, minimum $175. Each specialty permit (electrical, mechanical, life safety, structural, sustainability) is 10% of the building permit fee, minimum $125. An Early Start fee is $250.one-time, per project2026-09-06
Articles of Organization (LLC)only if it applies to youMaryland State Department of Assessments and Taxation, Corporate Charter Division$100 one-time filingperpetual, but a $300 annual report is due every 15 April2026-09-03
Articles of Incorporationonly if it applies to youMaryland State Department of Assessments and Taxation, Corporate Charter Division$120 one-time minimum — $100 filing plus a $20 organization and capitalization feeperpetual, but a $300 annual report is due every 15 April2026-09-03
Annual Reportonly if it applies to youMaryland State Department of Assessments and Taxation, Corporate Charter Division$300 a yearannual — due 15 April, extendable to 15 June2026-09-03
Home Improvement Contractor Licenceonly if it applies to youMaryland Home Improvement Commission, Department of Labor$403.75 to open — $281.25 plus a $100 guaranty fund assessment and $22.50 processing; $456.25 to renew2 years2026-09-03

Fees shown as a range or formula are set that way by the issuing agency — we do not average them into a single number.

How much does it actually cost to permit a contractor or trade in Gaithersburg?

There is no single figure, and any site quoting one is rounding away the part that matters. Of the 7 records listed for a contractor or trade in Gaithersburg, MD, 3 apply to every business of this type and 4 are conditional. Adding every fee on the page together would overstate what most operators pay, because it would include permits they never need.

Of the 3 that always apply, 2 carry a flat fee, coming to $165.00. That is a floor, not a total. 1 of the 7 are charged as a range or a formula set by the issuing agency, and 0 have no fee published at all. The ones that vary:

Commercial Construction/Improvement Permit: Application fee tiered by size for projects under $500,000 — $125 (0–750 sq ft), $175 (751–1,999 sq ft), $275 (2,000+ sq ft); $1,100 flat for projects $500,000 and over. Building permit fee (includes 2 plan reviews) is $0.30 per sq ft or 1.50% of project cost, whichever is greater, minimum $175. Each specialty permit (electrical, mechanical, life safety, structural, sustainability) is 10% of the building permit fee, minimum $125. An Early Start fee is $250.

Which offices issue these permits in Gaithersburg?

Permits for a contractor or trade in Gaithersburg, MD come from 4 separate offices: Clerk of the Circuit Court for Montgomery County, City of Gaithersburg Planning & Code Administration, Maryland State Department of Assessments and Taxation, Corporate Charter Division, Maryland Home Improvement Commission, Department of Labor. No single office issues them all, which is why an opening means filing in several places rather than one.

  • Clerk of the Circuit Court for Montgomery CountyIssues 1 permit on this page: Trader's Licencewww.montgomerycountymd.gov/cct/business-license.html
  • City of Gaithersburg Planning & Code AdministrationIssues 2 permits on this page: Use and Occupancy Permit, Commercial Construction/Improvement Permit31 South Summit Avenue, Gaithersburg, MD 20877 · (301) 258-6330www.gaithersburgmd.gov/government/departments/planning-code-administration
  • Maryland State Department of Assessments and Taxation, Corporate Charter DivisionIssues 3 permits on this page: Articles of Organization (LLC), Articles of Incorporation, Annual Report700 East Pratt Street, Suite 2700, Baltimore, MD 21202-6377 · (410) 767-1340egov.maryland.gov/businessexpress
  • Maryland Home Improvement Commission, Department of LaborIssues 1 permit on this page: Home Improvement Contractor Licence100 South Charles Street, Tower I, Baltimore, MD 21201 · (410) 230-6231labor.maryland.gov/license/mhic

Is anything about these requirements changing?

Issued by the Circuit Court's License Department, not the city. Montgomery County exercised its option under Md. Business Regulation Article section 17-1808(b) to set this flat fee in place of the statewide default $15–$800 inventory-tiered schedule that otherwise applies in Maryland counties outside Baltimore City — described in the county's own materials as an irrevocable election.

How the fee scales for spaces larger than 5,000 sq ft could not be confirmed from the extracted schedule text. A verification of an existing Use and Occupancy record is $25 per address; occupying before the permit issues draws a $500 penalty.

A third plan review costs 75% of the original fee (capped at $3,000); later reviews cost 100% (capped at $5,000). A 10% automation fee applies to all application and permit fees.

$100 flat, domestic or foreign, with none of the capital-stock component that applies to a corporation. Ordinary processing costs nothing extra but takes six to eight weeks online; $50 buys seven to ten business days, $325 buys same-day review online and $425 the paper equivalent, and online filings carry a three per cent technology fee. Dissolving or cancelling is free. The real cost of an LLC in Maryland is the annual report at $300 a year, which is the same for a corporation.

$120 is a floor, not a price. The $20 organization and capitalization fee covers an aggregate par value up to $100,000 and then climbs on a ladder — a dollar per five thousand up to a million, then ten dollars per hundred thousand, then fifteen per half million, then twenty per million — so a heavily capitalised corporation pays materially more. Shares with no par value count at twenty dollars each for this purpose, which catches people who authorise a large no-par block. A nonstock corporation organised as a charity pays $170, of which fifty dollars goes to a nonprofit development fund.

$300 a year, and Maryland charges it to an LLC, a corporation, a limited partnership, an LLP and a business trust alike — there is no cheaper structure. A nonstock corporation and a sole proprietor pay nothing, and a certified family farm pays $100. The personal property return that accompanies it is free, and is not required at all if your personal property statewide cost under twenty thousand dollars to buy — but the annual report is still due. The penalty is unusual in being proportional to your county assessment rather than to the fee: up to a tenth of one per cent of it, plus two per cent of that penalty every thirty days, with a floor of $30 rising to $50 and a ceiling of $500. An extension to 15 June is free if requested electronically by the due date.

Renewal costs more than the first licence, which is unusual: the guaranty fund assessment is $100 to join and $175 every two years thereafter, so renewal comes to $456.25 against $403.75 to start. The $281.25 is charged per place of business, so a second location doubles it. If pending claims threaten to take the fund below a million dollars the commission may levy a further fifty dollars, capped at a hundred and fifty a year, and not paying within sixty days suspends the licence. The fund pays a claimant up to $30,000 and a total of $250,000 against any one contractor. Note the separate regime for new homes: a home builder registers with the Attorney General instead, at $800 for two years, and once that registration expires it cannot be renewed at all.

Sources

Every figure above was read from one of these government pages on the date shown. Confirmed by Editorial Team.

  1. Montgomery County Code section 30-13, Uniform Trader's Licence FeeMontgomery County, Maryland · primary source · retrieved 2026-09-06
  2. City of Gaithersburg — FY 2027 Schedule of FeesCity of Gaithersburg · primary source · retrieved 2026-09-06
  3. Maryland Business Express — filing fee scheduleMaryland State Department of Assessments and Taxation · primary source · retrieved 2026-09-03
  4. Maryland Corporations and Associations section 1-204 — the organization and capitalization fee ladderMaryland General Assembly · primary source · retrieved 2026-09-03
  5. Maryland Tax-Property section 11-101 — who must file an annual report and by whenMaryland General Assembly · primary source · retrieved 2026-09-03
  6. Maryland Tax-Property section 14-704 — annual report penaltiesMaryland General Assembly · primary source · retrieved 2026-09-03
  7. Maryland Home Improvement Commission — forms and feesMaryland Department of Labor · primary source · retrieved 2026-09-03
  8. Maryland Business Regulation section 8-404 — the home improvement guaranty fund assessmentMaryland General Assembly · primary source · retrieved 2026-09-03

Related

Commercial Compliance Hub publishes information, not legal advice. Requirements change — confirm anything you rely on with the issuing agency before you file.