Home Bakery Permit Requirements in Annapolis, MD

1. EIN (Employer Identification Number)

   Required if you have employees or operate as an LLC or corporation. Free from the IRS.

   Official government source

   Free·Immediate (online application)

   Free

   Immediate (online application)

1. Maryland Comptroller — Sales Tax Registration

   Required for all businesses selling taxable goods or services in Maryland (6% state rate; Maryland has no local sales taxes). Retail product sales are taxable. Some services are also taxable — notably cleaning of a COMMERCIAL or industrial building (janitorial/commercial cleaning) under Md. Tax-General §11-101(m): commercial cleaning businesses must collect 6% on the service itself, while residential cleaning is not taxable. Sales of photographs (portrait/wedding) are taxable as tangible personal property. Registration with the Comptroller of Maryland is free.

   Official government source

   Free·Immediate (online via bFile)

   Free

   Immediate (online via bFile)

2. Maryland Department of Health — Food Service Manager Certification

   While cottage food producers may be exempt from food manager certification, it is strongly recommended for food safety best practices.

   Official government source

   $80–$150 (exam and course)·1–2 days

   $80–$150 (exam and course)

   1–2 days

1. Maryland Cottage Food Law

   Maryland allows home bakery operations under its Cottage Food Law (Md. Code, Health-General 21-330.1). A cottage food business owner who complies with the section is not required to be licensed by the Maryland Department of Health. Annual gross sales are capped at $50,000 (raised from $25,000 by HB 178, Chapter 406 of 2022, effective October 1, 2022). Products must be prepackaged at the residence and labeled with the business name and address (or name, phone, and an MDH-assigned identification number), product name, ingredients in descending order of weight, net quantity, federal allergen information, and the statement "Made by a cottage food business that is not subject to Maryland's food safety regulations" in at least 10-point type of a contrasting color. Selling through a retail food store additionally requires submitting proof of an MDH-approved food safety course and the label to the Department. Owners must still comply with City of Annapolis and Anne Arundel County law — confirm local rules with the Anne Arundel County Department of Health food protection program (North Region 410-222-0056, South Region 410-222-7192).

   Official government source

   $0 — Maryland charges no license or registration fee for a cottage food business; an MDH-approved food safety course (private provider cost) is required only to sell through retail food stores·No state approval or waiting period — you may begin once labeling and local requirements are met

   $0 — Maryland charges no license or registration fee for a cottage food business; an MDH-approved food safety course (private provider cost) is required only to sell through retail food stores

   No state approval or waiting period — you may begin once labeling and local requirements are met

2. Annapolis — No General Business License Required

   Neither the City of Annapolis nor the State of Maryland requires a general business license. The Annapolis Department of Finance does not license businesses. Annapolis licenses only specific activities (peddlers/mobile vendors, bed-and-breakfasts, rental housing, trade contractors) through the City Clerk and Licenses & Permits Division. Businesses selling goods need a Maryland trader's license from the Anne Arundel County Clerk of the Circuit Court, and opening a commercial space in Annapolis requires a Certificate of Use from Planning and Zoning.

   Official government source

   $0 — no general business license exists; activity-specific licenses, if applicable, have their own fees·Not applicable

   $0 — no general business license exists; activity-specific licenses, if applicable, have their own fees

   Not applicable

Official Sources

• Maryland Cottage Food Law
• City of Annapolis Department of Finance

Related Guides