How To Get A Maryland Sales And Use Tax License In 2026

If you’re a Limited Liability Company (LLC) that sells physical products when operating in Maryland, you’ll need to collect and remit Sales and Use Tax. However, before you can, you first need a Sales and Use Tax License. This can be obtained by registering your business with the Maryland Comptroller.

The application process is pretty straightforward. Even so, it’s easy to get it wrong if you don’t understand the different filing sections. I’ll walk you through how to apply for a Maryland Sales and Use Tax License below so you don’t run into trouble.

Overview Of Maryland Sales And Use Tax License

You must obtain a Sales and Use Tax License from the Maryland Comptroller if your LLC sells physical products in the state. This is outlined in Maryland Statutes §11–702. You’ve got to do this regardless of whether you sell products online, in person, or both.

1. Methods & Processing Time

When registering for business taxes with the Comptroller, you can choose between three main methods. Each is completely free, but processing times vary.

Use the summary table below as a reference guide when picking the best one for your operating needs.

2. Who Needs To Register?

You need a Maryland Sales and Use Tax License if you operate as one of the following business types:

• A retail seller that sells or delivers products in the state.
• An out-of-state seller that sells products to consumers in Maryland.
• A marketplace facilitator that processes sales for third-party sellers. Common examples include Amazon and Etsy.

Alongside this, you’ve got “nexus” to think about. Basically, this means that your LLC has a strong enough connection to the state to require tax registration. There are two main types.

Physical nexus applies if your LLC has a real presence in the state. You may have an office, store, warehouse, employees, inventory, or a fulfilment center, which means you qualify.

On the other hand, remote sellers without a physical location in Maryland may have an economic nexus. This applies if your state sales exceeded $100,000 in the current or previous calendar year, or you made 200 or more separate sales transactions to state customers.

How To Get A Maryland Sales And Use Tax License Via Tax Connect

1. Access Your Registration Form

To begin your Maryland Sales and Use Tax License application, navigate to the Maryland Tax Connect page and click “Apply for Business Tax Account – Combined Registration Application.“

Read through the terms and check the “Terms & Conditions” box at the bottom.

Then, press “Next” to continue.

2. Contact Information Section

Provide your full name, contact phone number, and email address in the applicable fields. Make sure you type your email twice to confirm it.

3. Add Demographic Information And Account Registration Details

a. Demographic Information

The next part asks for your demographic info. Provide your Employer Identification Number (EIN) in the “ID Value” field and Social Security Number (SSN) below, as you’re the one registering. Don’t worry about the ID Type field. It’s already set to “FEIN.”

Choose Business in the “Entity Type” dropdown menu and then specify whether you’re a Maryland Resident by checking “Yes” or “No.”

The “Ownership Type” field needs to match your tax classification:

• Multi-member LLCs are Partnerships.
• Single-member LLCs are Disregarded Entities.
• You’re an LLC Corporation if you’ve elected to be an S corporation or C corporation with the Internal Revenue Service (IRS).

Next, state your legal business name in the “Business Legal Name” field. Complete the trade name part if you operate under a DBA. Otherwise, leave it blank.

Underneath your business name, use the “Yes” and “No” checkboxes to indicate if your mailing address and physical address are the same.

You should then see the mailing address fields. Complete the fields marked with a red asterisk (*). Don’t worry about the Attention, Telephone Number, and Fax Number fields if they don’t apply. Leave them blank.

Finally, choose whether you would like to add a physical location. Choose “Yes” if you operate from a different physical address, or “No” if not, and continue.

b. Reason For Applying

If you’re a newly formed LLC for registering for business taxes, pick “New Business (Open New Tax Account).” This is the most common choice.

Choose “No” for the “Would you like to add a Previous Owner” section, unless you purchased/took over your business from someone else. Then, continue.

c. Account Registration

So, here’s how you register for your Sales and Use Tax License. Check the “Sales and Use Tax” box and enter the date that you expect to begin making taxable sales in the state.

Underneath, select the option that best describes your business activities:

• Pick the first option if you only sell from a physical location in Maryland.
• You need to choose the second option if you sell online.
• The third option applies if you sell online and offline from a physical state location.
• If you don’t make sales and only need a Use Tax account, select the fourth option.

Indicate if you have one or multiple physical state locations at the bottom. Check the box if you only have one and continue. If not, leave the box unchecked and specify how many underneath.

d. NAICS

Scroll down to the section directly above the “Cannabis” field, but not all the way down.

Provide your 6-digit NAICS code. This is often missed once you’ve completed your Sales and Use Tax License registration section.

Need help choosing the most suitable code? Use the NAICS Code Identification Tool.

4. Related Parties

A related party is any individual connected to your business, such as an owner, LLC member, partner, officer, or trustee. Provide the info of at least two people involved with your business before moving on.

To begin, add the person whose SSN was provided in Section A. Simply list yourself if you’re a single-member LLC.

a. Add New Person

Click “Add” to start the process of adding someone.

b. Enter The Person’s Info

State the individual’s full name, SSN, and title in the provided fields. As I said above, the first person can be the one entered earlier.

Add their home address underneath. This can be an address entered previously or a different one. If it’s different, manually complete the required fields.

Once you’ve completed the required details, click “Continue.” You’ll need to repeat the same process for another related party.

c. Result Table

Carefully review your results table, checking that each person’s name, SSN, and address are correct.

You can either click “Add” to enter another person’s details or “Save and Continue” to go to the next section.

5. Complete The Request Tax Filing Coupons (Optional)

This part is totally optional. Don’t worry if you want to receive tax notices and filing reminders electronically. Just leave the box unchecked.

If you want future tax filing coupons to be mailed to you, check the box and click “Continue” to proceed.

6. Signatory And Power Of Attorney Information

Add the full name and title of the person signing your registration in the top fields. This will be an LLC owner, member, or manager in most cases.

Underneath, type in their name once more in the “Signature” field, check the box underneath, and state your signing date.

Note that you’ll have to attach a Power of Attorney form if your signer isn’t one of the people listed in the “Related Parties” section. This authorizes them to act on behalf of your LLC.

7. Review Your Summary Information

You’ve completed the required info sections. Carefully review everything to make sure it’s correct, including your business details, ownership information, and tax account selection.

You’ll have to navigate back and update the information if you see any errors.

With everything in order, click “Next” to complete the electronic signature section.

Finally, click “Yes” at the bottom right-hand side of the screen to sign and submit your completed application.

Congratulations! Your business tax registration has been successfully sent to the Maryland Comptroller to be processed.

You should get instant confirmation once everything is submitted. Your account will be activated within 1 to 4 days.

Obtaining Your Sales And Use Tax License Online Via Business Express

1. Find Your Registration Form

First, go to the Maryland Business Express page. Log in with the account you registered when filing your Articles of Organization, and you’re good to go.

Find “Start a New Filing” and select Register Tax Accounts with Comptroller. Just follow the prompts after this to start your Sales and Use Tax License registration.

2. Reason For Applying

Click “New Business.”

3. Provide Your Business Information

a. Principal Office Address

Next, enter your principal office address. Make sure it includes your street address, city, state, county, and ZIP code. Don’t use a P.O. box, or you’ll run into issues.

Check the mailing address when prompted if your mailing address is different from your principal office address. Use the same process to enter it.

Otherwise, simply leave the box unchecked and continue.

b. Contact Information

Provide your contact email and number here.

c. Description Of Business Activity

State your primary operating purpose exactly as stated in your formation docs.

4. Business Type Part

a. Business Type

The system will auto-generate questions related to your member number and business type once you select “Limited Liability Company.” Answer them and move on.

b. Locations

After entering your business type, you’ll see “Yes” and “No” tickboxes related to your operating locations. If you choose “No,” you’ll need to enter the exact number.

c. Business Name

Add your legal name in the “Business Owner” line.

d. Support Service

You’ll now be asked questions regarding support services. These specifically ask whether your business offers services to related companies under the same ownership, not to outside customers.

Generally speaking, you’ll answer “No” as a small LLC. Choose “Yes” if your business supports other companies in the same corporate group. Examples include IT, accounting, or admin services.

5. Finish The Business Ownership Section

Underneath, add at least one LLC owner/member.

Click “Add business owner” to start.

a. Enter Owner’s Information

The system should generate a small pop-up window. This is normal. Just enter the required information for your owner, including their name, address, SSN, and contact details.

Click “Save” once you’re done.

b. Check The Result Table

Check the owner info table and make sure it’s correct. If changes are needed, you can use the “Edit” and “Delete” buttons.

Click “Save & Continue” once everything is in order to proceed.

6. Licenses And Tax Accounts

a. Licenses And Tax Accounts

You should see a lot of account types here. I’ve chosen to only use the “Sales and Use Tax for this guide.

Contact a professional accountant for help if you need to apply for other accounts.

b. EIN

State your EIN twice in the fields provided. This confirms it with the system.

c. Individual Responsible For Taxes

Under your EIN, add the SSN of the individual who is responsible for matters related to your business tax. This is commonly an owner, member, or manager.

7. Complete Your Sales And Use Tax License Information

a. Business Description

Pay attention to this part. You need to choose the option that best matches your primary activities. Once you’ve made a selection, you should see a more detailed list. Choose the description that closely matches your business.

Underneath, pick the option that matches how you actually make sales. Just choose one that best reflects how you operate in the state. This could be in-person, online, or both.

b. NAICS Code

Next up, pick your NAICS code.

Need help knowing which one is suitable? Check out the NAICS Code Identification Tool.

c. First Sales

Finally, add the date of your first taxable sale in the state. Either type it directly or click the calendar icon to select it.

8. Alternate Contact Information (Optional)

Any updates and notices regarding your application will be sent to your email address by default. This is the one connected to your Maryland Business Express account.

Use the Alternative Contact Information section if you want someone else to get your notifications. Otherwise, simply leave this part blank and continue.

9. Check The Summary Section

This section is important. Carefully check all the information you’ve provided so far before submitting your application. Click “Edit” next to the part that requires updates if needed.

With everything in order, continue to the final certification and submission part.

10. Certification

Lastly, complete the certification section.

Start with the Applicant part and enter your name. Leave the “person preparing this application is not the applicant” box unchecked if you’re the person submitting it.

Once this is done, review the certificate statement and confirm that the info is correct before continuing to the final submission step.

Note that you can check the Paper Coupons box if you want to get them via mail.

With your filing submitted, the Maryland Comptroller will receive your business tax registration for processing. You’ll get digital confirmation immediately and get an active account within 1 to 4 days.

Getting Your Sales And Use Tax License By Mail: A Step-By-Step Guide

If you don’t want to file online, you can complete everything by mail. This is done using the Combined Registration Application form.

Click the link above or press “Download” on the right-hand side of the screen to get started. Then, follow the steps below.

1. Add Your Business Information

To begin, add the following business info in the top section:

• Your 9-digit EIN issued by the IRS.
• The SSN of the owner/officer/person responsible for your taxes.
• Your Department of Assessments and Taxation (SDAT) Entity ID number. You can find this on your approved formation docs.

2. LLC Name

State the legal name of your business in the fields underneath.

3. State Your Business Address

Then, add your business’s physical operating address. You can’t use a P.O. box here.

4. Business Mailing Address Section

After your business address, add your mailing address in the applicable fields. You’re allowed to use a P.O. box for this part.

5. Provide Your Reasons For Applying

Simply check the “New business” box and move on.

6. Registration Type

In the “Type of registration” section, check the Sales and Use Tax License box. If you need to register for other tax types, I recommend contacting a professional.

7. Discuss Your First Sales & Wages

You should see Questions 10 to 16 underneath. Answer them based on your business activity.

8. Online/ Offline Sales

This part asks you to choose whether your business will conduct online sales, offline sales, or both.

9. Enter Your NAICS Code & Business Description

Enter your 6-digit NAICS code. This must be the one that best matches your chosen business activities.

Underneath, provide a short description of what you do and any products or services that you sell. Keep things simple.

10. Locations Number

Clarify whether your LLC has one or multiple operating locations here. You’ll need to indicate the exact number in the field below.

11. Clarify Your LLC’s Ownership

Question 21 asks you to enter info regarding your business owners, members, officers, or partners. Start with the individual in Section 1b and include their name, title, SSN, home address, and contact phone number.

Just enter your own information in the first row if you’re a single-member LLC.

13. Section E

This section is optional. You can request paper tax coupons by mail, or leave the box unchecked and continue.

14. Provide Your Signature

Carefully look at your prefilled info before printing and signing your form. Add the current date, and you should be all done.

If someone other than your business owner or authorized representative is signing, you’ll need to attach a completed Power of Attorney form. Also, make sure you check the POA box.

15. File Your Completed Form

All that’s left to do now is place your form and any attachments into an envelope. Send it to the following address to complete your paper application:

Comptroller of Maryland
Revenue Administration Center
110 Carroll Street
Annapolis, MD 21411-0001

Alternatively, you can file by fax to (410) 260-7908.

Expect to get everything processed in around 2 to 4 weeks from the date that the agency receives your filing.

Maryland Comptroller Main Contact Information

Need more help with Sales Tax or tax-related issues? Contact the Comptroller using the following details.

• Phone: 410-260-7980
• Email: [email protected]
• Address: Revenue Administration Division, P.O. Box 8888, Annapolis, MD 21401-8888
• Working hours: Monday to Friday, 8:30 am to 4:30 pm EST

The Importance Of Obtaining A Sales And Use Tax License

You’ll face serious consequences if you don’t obtain a Sales and Use Tax License when one is required. Don’t overlook these. I’ve discussed the main ones in the following sections.

1. Criminal Penalties

Any LLC operating as a retail vendor or even an out-of-state vendor without the necessary Sales and Use Tax License may be charged with a misdemeanor under the Maryland Code, Tax-General § 13-1016. If convicted, penalties may include a fine of up to $100.

Bad news if the court sees this as a misdemeanor. Under Maryland Commercial Law §13-411, you may be fined $1,000, face a year in jail, or both.

2. Civil And Tax Penalties

The state may charge a 10% late payment penalty plus interest on any outstanding tax if you don’t collect, report, or pay your Maryland Sales and Use Tax by the stated due date.

Things will get worse if you continue not to comply. You could face additional penalties, license suspension/revocation, or even collection actions such as property liens and bank levies.

3. Display Requirements And Penalties For Not Doing

Your license must be displayed at every one of your Maryland business locations under Maryland Code, Tax-General §11–708, provided that you’re required to obtain it.

This is an ongoing requirement. Representatives from the Comptroller’s Office or local law enforcement officers may audit any of your business locations at any time. Fail to display one, and you’ll be assumed to have no license, which leads to any of the potential penalties discussed above.

Frequently Asked Questions