Contractor License Practice Exam

Is a business license required for all new businesses in Maryland?

1. Yes

2. No

3. Only for certain industries

4. Only for businesses with more than 10 employees

The correct answer is: Yes

A business license is generally required for new businesses in Maryland, making it essential for operating legally within the state. This requirement applies broadly, as Maryland has established regulations to ensure that businesses meet certain standards and protocols for health, safety, and taxation. The business license process is designed to protect consumers and maintain oversight of various business activities. While there are exceptions, such as certain types of businesses that may not require licensing or may fall under specific industry exemptions, the overall framework mandates that most new businesses must obtain a license before they can start operations. This ensures that all businesses are registered and compliant with local laws, facilitating a structured business environment. In contrast, the other options could mislead one into thinking that there are significant loopholes or varying requirements based on arbitrary factors. However, the fundamental principle remains that a business license is a crucial step for new ventures in Maryland to legally operate and contribute to the economy responsibly.