Can I run a business from home in Gorham, Maine?
Yes. Home occupations are allowed as an accessory use in Gorham's residential and rural districts, but you need a permit from the Code Enforcement Department before you start. You can have up to 2 non-family employees and generate no more than 10 vehicle trips a day, and the business can use up to 20% of the home's floor area or 576 sq ft, whichever is more.
| Permit | Required from Code Enforcement before starting [6] |
| Non-family employees | Maximum 2 [2] |
| Traffic | No more than 10 vehicle trips per day [4] |
| Floor area | Up to 20% of the dwelling or 576 sq ft, whichever is more (day care up to 50%) [5] |
| Signs | One sign up to 6 sq ft for residential uses [9] |
| Not allowed | Motor vehicle repair; day care centers [7] |
| Instruction | Max 4 students at a time (2 for music) [8] |
What counts as a home occupation
Chapter 1 defines a home occupation as one carried on by a family member living in the home, clearly incidental and secondary to the residential use. Home occupations are listed as permitted accessory uses in the Urban Residential, Suburban Residential and Rural districts. Section 2-15 lists the allowed types: business and professional offices, personal services, instructional services, repair services, day care homes, home crafts, construction services, contractor or tradesman offices, medical marijuana caregivers, and online retail sales.
Core standards (Sec. 2-15)
- Work must be done inside the house or an accessory building [1].
- No more than 2 people from outside the family may be employed [2].
- No exterior display, outdoor storage or other outside sign of the business [3].
- No more than 10 vehicle trips per day, and no more traffic than is normal for the neighborhood [4].
- The business may use up to 20% of the dwelling's floor area or 576 sq ft, whichever is more. A home day care may use up to 50% [5].
- Extra parking goes in the side or rear yard, outside the setbacks.
- Sales are limited to items made or altered on site, catalog orders, and items incidental to a service.
Permit
You need a permit from the Code Enforcement Department before you start. The Code Enforcement Officer can limit the use or require on-site improvements [6].
Prohibited and special uses
Motor vehicle repair and day care centers aren't home occupations [7]. Instruction is limited to 4 students at a time, or 2 for music lessons [8]. A day care home needs a state license first. Starting July 1, 2027, state law (30-A M.R.S. §4364-D) makes family child care a permitted residential use, which may override Gorham's home-occupation permit requirements for day care homes. Construction services may keep no more than two trucks or vans and one trailer outside, with no outdoor material storage. Repair of gas or diesel small engines isn't allowed. Medical marijuana caregivers face extra limits on hours, canopy size and odor.
Signs
Residential uses may have one sign of up to 6 sq ft, attached to the building or in the front yard [9]. In the Village Home Occupation Overlay, home businesses may use up to 50% of the home, employ up to 10 non-family members, and include retail stores under 500 sq ft.
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Next steps
- Check that your business type is on the Sec. 2-15 list and isn't vehicle repair or a day care center.
- Make sure it fits the limits: 2 or fewer outside employees, 10 or fewer daily trips, floor area within the 20%/576 sq ft cap, and nothing stored outside.
- Apply for a home occupation permit from Gorham Code Enforcement (207-222-1605) before opening. Bring a floor plan showing the business area and your parking.
- Get any state license your business needs first, such as a child care license for a day care home.
Common questions
- Can I run a business from my home in Gorham, Maine?
- Yes. Home occupations are allowed as an accessory use in Gorham's residential and rural districts, but you need a permit from the Code Enforcement Department before you start.
- How many employees can a home business have in Gorham, Maine?
- Up to 2 people from outside the family. The business can generate no more than 10 vehicle trips a day, and there can be no exterior display or outdoor storage.
- How much of my house can I use for a home business in Gorham, Maine?
- Up to 20% of the dwelling's floor area or 576 sq ft, whichever is more. A home day care may use up to 50%.
- What home businesses are not allowed in Gorham, Maine?
- Motor vehicle repair and day care centers aren't home occupations. Repair of gas or diesel small engines isn't allowed either. Instruction is limited to 4 students at a time, or 2 for music lessons.
- Can I put up a sign for my home business in Gorham, Maine?
- Residential uses may have one sign of up to 6 sq ft, attached to the building or in the front yard.
Maine state rules for home businesses
Maine has no statewide home-occupation law. Whether you can run a business from home, and with what limits, is mostly up to your town's zoning. A few state rules may apply:
- Sales tax registration: If you regularly sell taxable goods or services from home, you must register with Maine Revenue Services and collect sales tax.
- Home food businesses: Making shelf-stable foods (baked goods, jams and similar) to sell requires a Home Food License from the Maine Department of Agriculture, Conservation and Forestry. It costs $20 a year and needs an initial kitchen inspection. Foods that must be refrigerated need a commercial license instead.
- Family child care: A state law (30-A M.R.S. §4364-D) makes family child care providers a permitted use in residential zones, under the same zoning rules as a single-family home. As amended in 2026, towns must follow it starting July 1, 2027. State child care licensing applies separately.
- Shoreland zone: The DEP's model shoreland ordinance defines a home occupation as one clearly incidental to the home, with no more than 2 employees besides family members living there. It requires a planning board permit in Limited Residential, Resource Protection and Stream Protection districts, and a code officer permit in Limited Commercial districts.
What the ordinance says
- Sec. 2-15(3), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 122
3. The occupation or profession shall be carried on wholly within the principal building or within a building or other structure accessory thereto with the exception of farm/roadside stands which are allowed to be carried on in a separate structure.
- Sec. 2-15(4), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 122
4. Not more than two people outside the family shall be employed in the home occupation.
- Sec. 2-15(5), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 122
5. There shall be no exterior display, no exterior sign (except as expressly permitted by the district regulations of this chapter), no exterior storage of materials and no other exterior indication of the home occupation or variation from the residential character of the principal building.
- Sec. 2-15(7), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 122
7. No traffic shall be generated by such home occupation in greater volumes than would normally be expected in the neighborhood or generate more than 10 vehicle trips per day.
- Sec. 2-15(10), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 122
10. The home occupation shall not utilize more than 20% of the total floor area of the dwelling unit or 576 square feet, whichever is more, with the exception of home day care facilities which may utilize up to 50% of the dwelling unit in addition to the use of the exterior of the property for State required play areas.
- Sec. 2-15(12) Permit required, Land Use and Development Code – Chapter 2: General Standards of Performance, p. 123
12. Permit required. A permit must be obtained from the Code Enforcement Department prior to commencement of the Home Occupation.
- Sec. 2-15(13), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 123
13. A home occupation shall not be interpreted to include the following: a. Facilities for the repair of motor vehicles b. Day care center
- Sec. 2-15(14)(a), Land Use and Development Code – Chapter 2: General Standards of Performance, p. 123
Instructional services involving a maximum of four students at a time are permitted. In the case of musical instructions, no more than two students at a time shall be permitted.
- Sec. 2-3.F Permitted Residential Signs, Land Use and Development Code – Chapter 2: General Standards of Performance, p. 51
Residential uses may display a single sign not over six square feet in area attached to a building or detached and located in the front yard relating to uses or services rendered on the premises, the sale, rental or lease of the premises.