BR 17-2102: Doing Business Without a License

Maryland law requires for profit businesses to be licensed, and while the enforcement of these laws does not necessarily extend to the neighborhood lemonade stand, any brick-and-mortar business will almost certainly need to have and display a license.  Business licenses are issued by the clerk and contain fees depending on the type of business.  These businesses include, but are not limited to restaurants, garages, retail stores, dry cleaning, storage warehouses and construction.  Police officers in Maryland are not typically charged with the task of checking businesses for valid licenses.  Rather, the Comptroller of the State of Maryland will send investigators out to business to check for trader’s licenses, restaurant licenses or other specific licenses.  Occasionally these investigators will issue warning before charging, but many times the owners are charged without warning.  Unfortunately, we have also represented numerous employees who have no ownership or management role in the business.
 
If an investigator from the Comptroller’s Office comes out to an auto shop and finds an expired license being displayed on the wall the owner will likely be charged with doing business without a trader’s license under BR 17-2102.  Those who are charged are not arrested but rather issued a criminal citation with a mandatory court appearance.  The cases are heard in the District Court where the business is located.
 
Those who are charged with doing business without a license under BR 17-2102 will often also face an additional charge for failure to display license under BR 17-2103.  The two criminal citations will generate two separate criminal cases that will be set on the same day and time.  If a resolution can be worked out, it would likely include both cases. Another common related offense is acting as a contractor without a license under 8-601 of the Business Regulations Code, which has a harsh 6-month maximum penalty.
 
The statute only applies to those “conducting business” and if an employee, even a manager, is charged we will argue that the investigator has charged the wrong person.  Employees are agents of the business owner and are not conducting business on their own.  It was not the intent of the lawmakers to punish mere employees for a business not complying with the law.  On the other hand, it may be a safer approach to fix the issue and argue for a dismissal rather than go to trial and risk a judge not following the law.
 
Doing business without a license carries a $300 fine and up to 30 days in jail. This is a serious penalty considering the defendant also faces the possibility of having a permanent criminal conviction.  Failure to display a license also carries up to 30 days in jail, so a defendant could conceivably face up to 60 days of incarceration.
 
Benjamin Herbst specializes in business regulations violations such as doing business without a license and acting as a contractor without a license.  These are serious offense that are often charged against individuals with no prior criminal record, who can’t afford a conviction.  Benjamin has successfully defended numerous Maryland workers and business owners against these charges and is standing by to offer a free consultation at 410-207-2598.