Can I run a business from home in Scarborough, Maine?
Usually yes. A quiet in-home office with no customer visits, signs, or non-resident employees needs only a simple permit from the Code Enforcement Officer. A true home occupation (customers, one outside employee, retail sales) needs special exception approval from the Zoning Board of Appeals in residential zones, and may use no more than 20% of the home's floor area.
| In-home office (no clients, no signs, no outside employees) | Permit from Code Enforcement Officer, any district [1] |
| Home occupation in residential zones | Special exception (Zoning Board of Appeals) [3] |
| Non-resident employees | Max 1 [5] |
| Floor area | Max 20% of dwelling floor area, plus unfinished attic/basement and up to 1,000 sq ft in an accessory building [7] |
| Retail sales area | Max 400 sq ft, fully enclosed [8] |
| Prohibited | Motor vehicle repair and towing businesses [9] |
Two levels of approval
In-home office. In any district, the Code Enforcement Officer may issue a permit for an in-home office run by residents [1]. It is not a home occupation if customers don't come to the home, contact is mainly by mail, phone or internet, deliveries are no more frequent than normal for a house, there are no signs or exterior evidence, the work creates no noise or nuisance outside, and no non-residents are employed [2]. You sign the permit agreeing to those conditions, and it lasts as long as a listed person lives there.
Home occupation. Anything beyond that, such as clients visiting or an outside employee, is a home occupation. The use table requires a special exception (SE) in the RF, RFM, R2, R3, R4, R4A, VR2 and VR4 districts, while some village and mixed-use districts permit it outright [3]. The Zoning Board of Appeals grants the special exception, and the business must meet the general special exception standards and Section IX.V [4].
Home occupation standards
- Carried on entirely inside the house or an accessory building, and clearly secondary to living there.
- No more than one employee who doesn't live there [5].
- No exterior display, outdoor storage of materials, or other outside sign of the business (lobster trap storage is exempt); no offensive noise, vibration, smoke, dust, odors, heat or glare [6].
- Traffic must not create a hazard or disturb the neighborhood, and off-street parking is required for each employee and the peak number of customers on top of normal household parking.
- Space: up to 20% of the dwelling's floor area (unfinished basement and attic not counted), plus unfinished attic and basement space and up to 1,000 sq ft in an accessory building [7].
- Retail sales: up to 400 sq ft, fully enclosed, limited to products made on site or seafood harvested by residents or the one employee [8].
- Signs follow the home occupation sign provisions of Section XII.
- Motor vehicle repair and towing are not allowed as home occupations [9]. Fishermen and lobstermen need approval only for retail sales.
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Next steps
- Decide whether your business fits the in-home office conditions (no customers on site, no signs, no outside employees).
- For an in-home office, apply for the in-home office permit from Scarborough Code Enforcement, (207) 730-4040.
- For a home occupation in a residential zone, file a special exception application with the Zoning Board of Appeals, with a floor plan showing the business area and a parking plan.
- Ask Code Enforcement about sign size limits before ordering any sign.
Common questions
- Can I run a business from home in Scarborough, Maine?
- Usually yes. A quiet in-home office with no customers, signs or non-resident employees needs only a simple permit from the Code Enforcement Officer. A true home occupation in residential zones needs special exception approval from the Zoning Board of Appeals.
- How many employees can a home business have in Scarborough, Maine?
- A home occupation may have no more than 1 employee who doesn't live there. An in-home office can't employ any non-residents.
- How much of my home can I use for a business in Scarborough, Maine?
- Up to 20% of the dwelling's floor area, plus unfinished attic and basement space and up to 1,000 sq ft in an accessory building.
- Can I sell retail products from a home business in Scarborough, Maine?
- Yes, within limits. Retail sales are limited to 400 sq ft, fully enclosed, and to products made on site or seafood harvested by residents or the one employee.
- What home businesses are not allowed in Scarborough, Maine?
- Motor vehicle repair and towing aren't allowed as home occupations.
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
- Section IX.B Performance Standards – In-Home Offices, Zoning Ordinance Section IX – Performance Standards, p. 4
In any district, the Code Enforcement Officer may issue a permit for the operation of an in-home office by one or more residents of a dwelling unit as an accessory use to the dwelling unit.
- Section IX.B.a, Zoning Ordinance Section IX – Performance Standards, p. 4
customers or clients do not come to the dwelling to receive goods or services;
- Section XIII.A Use Tables – Home Occupation, Zoning Ordinance Section XIII.A – Combined Zoning District Use Tables, p. 3
Home Occupation Section IX (V) SE SE SE SE SE SE SE SE P P/SE P/SE P/SE P/SE P P/SE PD
- Section IX.V Performance Standards – Home Occupations, Zoning Ordinance Section IX – Performance Standards, p. 40
In those zoning districts where home occupation is allowed as a special exception, the Board of Appeals may issue special exception approval for the establishment of a home occupation.
- Section IX.V.3, Zoning Ordinance Section IX – Performance Standards, p. 40
No more than one person who is not a resident of the dwelling unit shall be employed in the home occupation.
- Section IX.V.6, Zoning Ordinance Section IX – Performance Standards, p. 40
No nuisance shall be generated, including but not necessarily limited to offensive noise, vibration, smoke, dust, odors, heat or glare.
- Section IX.V.9, Zoning Ordinance Section IX – Performance Standards, p. 40
Not more than twenty percent (20%) of the dwelling unit floor area, provided that for the purposes of this calculation, unfinished basement and attic spaces are not included;
- Section IX.V.10.a, Zoning Ordinance Section IX – Performance Standards, p. 40
The total area devoted to retail sales is limited to four hundred (400) square feet and must be fully enclosed within a building.
- Section IX.V.12, Zoning Ordinance Section IX – Performance Standards, p. 41
Motor vehicle repairs and motor vehicle towing businesses are not allowed as home occupations.