Benefits of Holding a Maryland Home Improvement Contractor License

Numerous reasons make holding a Maryland Home Improvement Contractor (MHIC) License attractive. Besides, it's mandatory to hold the license to repair, remodel, or renovate any commercial and residential property in Maryland. Read on to learn more about the benefits and application process of the MHIC license.

How to Obtain a Maryland Home Improvement Contractor (MHIC) License

You must first provide proof of at least two years of experience working in home improvement work. While optional, completing an exam prep course before registering for the MHIC exam is advisable. Many contractor candidates find it quite difficult to pass the exam without an exam prep course.

Applicants must:

• Schedule, take and pass the MHIC licensing exam administered by PSI Exam Services after preparing for the exam with our Maryland HIC Exam Prep Course.
• Meet the stipulated financial guidelines by providing proof of total assets, liabilities, a full credit report no older than 90 days, and net worth. Those who don't meet the financial solvency guidelines may purchase a surety bond of at least $20,000 and pass a credit check.
• Present a Certificate of Good Standing from the Department of Assessments and Taxation, including articles of incorporation, if an applicant is representing a corporation or construction company.
• Check the availability of a business name with the Home Improvement Commission by contacting them at (410) 230-6309, and then register the trade name with the Department of Assessments and Taxation.
• Submit a certificate of general liability insurance together with proof of $50,000 contractor liability insurance. The certificate needs to present the name of the applicant and the name of the company, as well as the Maryland Home Improvement Commission designated as the certificate holder.
• Pay a $250 license fee, $100 guaranty fund assessment fee, and $20 application processing fee.
• Conduct an MHIC license search to check the validity of your license.

All paperwork must be correctly filled and submitted to the Department of Assessments and Taxation and the Maryland Home Improvement Commission on time.

The MHIC Contractor Exam

The Home Improvement exam covers home improvement law, business regulations and practices, licensing requirements, and other relevant information. The exam is open-book and offered though PSI Monday through Friday at the following Maryland locations:

• Baltimore
• College Park
• Crofton
• Frederick
• Hagerstown
• Lanham
• Salisbury

The exams are offered by appointment only. You can schedule the exam by contacting PSI at (800) 367-1565 or emailing them at examschedule@psionline.com.

The MHIC license application process can sometimes be challenging and time-consuming for first-time applicants and even experienced contractors. With our Contractor License Application Processing Service, a licensing expert can do the heavy lifting for you!

How to Get Your License Bond

The MHIC Guaranty Fund exists to compensate homeowners if a contractor performs work that is inadequate or incomplete, up to $20,000. For this reason, those applying for an MHIC license need to show financial solvency.

As mentioned, if you do not meet the required net worth of $20,000, you can obtain a surety bond. This bond needs to show the person and business name and be signed by the applicant.

Other local requirements for licensing and bonding of contractors may exist in your locale, so contact the city or county where you will be working for additional information.

Who Benefits From Having a Home Improvement Contractor License in Maryland?

Becoming a licensed home improvement contractor is a great way to work on high-paying construction projects because clients trust you. This not only gives you a chance to expand your business but also translates to additional revenue, which is good for your bottom line.

Besides, contractor work can sometimes involve working in potentially dangerous environments. Without an MHIC license, you risk compromising your safety and ability to work in the long term.

Finally, working as a home improvement contractor without an MHIC license in Maryland is illegal and may result in hefty fines or jail time.

Being a licensed and insured contractor makes good business sense, as it proves your knowledge, competence, and sense of responsibility.

Who Needs to Apply for a Maryland Home Improvement Contractor License?

You are an ideal candidate for a Maryland Home Improvement Contractor License if you prove that you've worked in home improvement or related fields for more than two years. Additionally, a vendor involved in selling home improvement products and services can also apply for an MHIC license called a Home Improvement Salesperson (HIS).

Note that applicants with prior or an outstanding conviction of a home improvement-related felony must provide copies of conviction records to the Maryland Home Improvement Commission. You should include letter of explanation for each conviction in addition to proof that you completed your parole or probation.

What Jobs Can You Perform as a Maryland Home Improvement Contractor?

Responsibilities of a home improvement contractor include but are not limited to:

• Basic electrical, plumbing, painting, landscaping
• Residential or commercial remodeling projects
• Home improvement, maintenance, and repair jobs
• Troubleshooting of HVAC and automation systems
• Supporting the contractor team at an administrative or clerical capacity

Bottom Line

It's both necessary and beneficial to you and your business to hold an MHIC license working in the industry within the state of Maryland. It can help you expand your business within the state, and can protect you from liability for working as an unlicensed home improvement contractor.

We at Contractor Training Center understand that getting an MHIC license involves a complex process.

Not sure where to start? Check out our Maryland Home Improvement Contractor exam prep materials, or sign up for a Contractor Licensing Start-Up Consultation and let a licensing expert walk you through each step of obtaining your home improvement license!