Legal Question in Business Law in Maryland

Interstate Contractor Not Licensed in Every State.

I own a Virginia based, Virginia licensed, construction business that is beginning to do design & build in other states. Ex) At this time we have contracted with a Maryland homeowner to build their deck and I have found a Maryland licensed contractor to build it. However, this contractor has become very nervous that I am not licensed in Maryland. In fact, he faxed me a copy of the Maryland Code Business Regulation Article Section 8-601 (a) "Except as otherwise provided in this title, a person may not act or offer to act as a contractor in the State unless the person has a contractor license." And also Section 8-612 "A person may not perform or sell a home improvement with or through another person who is required to be licensed under this title but is not licensed." I am not licensed in any state other than Virginia.

Without obtaining a contractor's license in all 50 states, how can I go about doing business with people in the other 49 states?


Asked on 10/26/98, 9:06 am

2 Answers from Attorneys
MYRON LEWIS MYRON LEWIS

Re: Interstate Contractor

It's the law! You do business in a state, you require a license!

Bruce Lewis

Bruce Lewis P.C.

7101 Wisconsin Ave. #1012


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Answered on 1/05/99, 1:02 pm
Daniel Press Chung & Press, P.C.

Re: Interstate Contractor licensing

There is no way. If you want to do or contract for construction or home improvement work in another state, you must follow that state's licensing requirements.

From your description of your work, you need at least a Va. Class B contractors license to do work in Va. In MD you don't need a license from the state to do work on new construction, but you need a license from the MD Home Improvment Commission to do home improvement work. In DC you need a license as well.

It is a crime to do this work in any of these three jurisdictions without the appropriate license. You cannot even contract to do it, even if you sub out all the work. In DC and MD, and possibly VA, you are not even allowed to sue for payment if you are unlicensed, and in DC at least, if you do get paid, the customer can then sue you to recover the payment back even if the work is perfectly satisfactory (and there are lawyers in DC who seek out just such clients).

Bottom line: don't even think of doing construction-related business in another state without ensuring that you have the proper licenses and that you are generally familiar with the requirements for contracts, permits, mechanics liens, workers comp, and other issues in each state (and county). Consult with a lawyer familiar with the construction industry now, rather than after problems arise.

Daniel Press

Chung & Press, P.C.

6723 Whittier Ave., Suite 302


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Answered on 1/02/99, 12:10 pm


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