Can I run a business from home in South Portland, Maine?
Yes. Home occupations are a permitted use in every South Portland residential zone, with no special approval listed, as long as the business is run by a family member living there, stays inside the house, uses no more than 25% of the floor area, and employs no more than two people from outside the family. There can be no outside display, storage or (generally) signs, and no nuisance traffic, parking or noise.
| Allowed in residential zones | Permitted use in all residential districts [1] |
| Who runs it | A family member living in the home [2] |
| Where | Wholly within the principal building [3] |
| Outside employees | No more than 2 [4] |
| Max floor area | 25% of the home's total floor area [7] |
| Signs, display, outdoor storage | None, except signs expressly allowed by district rules [5] |
| Prohibited home occupations | Lodging establishments, restaurants, shelters [9] |
Where it's allowed
The residential land use table lists home occupations as a permitted use ("P") in all eight residential districts (RF, AA, A, RC, G, VR, RT, WR) [1]. Home occupations are also permitted in most mixed-use and residential contract zones. The ordinance doesn't list a separate home-occupation permit; a business that meets the definition is treated as a permitted accessory use. A building or change-of-use permit may still be needed if you alter the space.
The conditions
A home occupation must be customarily carried on in a home, run by a family member who lives there, and clearly secondary to the residential use [2]. It must also meet these conditions:
- It must be carried on wholly within the principal building [3].
- No more than two people from outside the family may be employed [4].
- No exterior display, no exterior sign (except as district rules expressly allow), no outdoor storage, and nothing else outside that signals a business [5].
- No nuisance, including noise, vibration, smoke, odors, glare, traffic or parking [6], so customer visits must stay low enough not to cause traffic or parking problems.
- It can use no more than 25% of the home's total floor area [7].
Examples and prohibited uses
Listed examples include offices for doctors, lawyers, engineers, teachers, musicians, real estate or insurance agents; dressmaking; renting rooms to up to two boarders; family and group day care homes; cottage industries such as woodworking or food manufacturing; and beauty shops with no more than two chairs [8]. Lodging establishments, restaurants and shelters are specifically prohibited [9].
Signs
In the AA, A, G and RF districts, signs are allowed only as the sign article permits [10]; one sign of up to 2 sq ft is allowed for "a conforming nonresidential building or use" [11]. Whether that covers a home occupation isn't spelled out, so ask Code Enforcement before putting up any sign.
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Next steps
- Check that your business fits the home occupation definition (inside the house, at most 25% of floor area, at most 2 outside employees, no outside display or storage).
- Plan for customer and employee parking off the street so the business doesn't create traffic or parking problems.
- Contact South Portland Code Enforcement to confirm no permit is needed and before any renovation or sign.
- Get any state licenses your work needs, such as a Home Food License or sales tax registration.
Common questions
- Can I run a business from my home in South Portland, Maine?
- Yes. Home occupations are a permitted use in every South Portland residential zone, with no special approval listed, if the business is run by a family member living there and stays secondary to the home.
- How many employees can I have in a home business in South Portland, Maine?
- No more than 2 people from outside the family may be employed.
- How much of my house can I use for a home business in South Portland, Maine?
- No more than 25% of the home's total floor area, and the business must be carried on wholly within the principal building.
- Can I put a sign up for a home business in South Portland, Maine?
- Generally no. Exterior signs aren't allowed except as district rules expressly allow. Whether a district's sign allowance covers a home occupation isn't spelled out, so ask Code Enforcement first.
- What home businesses are not allowed in South Portland, Maine?
- Lodging establishments, restaurants and shelters are specifically prohibited. Outdoor storage, exterior display, and nuisances like noise, odor, traffic or parking problems are also not allowed.
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. 27-404, Table A (Allowable Land Uses in Residential Districts), Zoning (Code of Ordinances Chapter 27), p. 115
Home Occupation P P P P P P P P
- Sec. 27-201 Definitions, Home occupation, Zoning (Code of Ordinances Chapter 27), p. 51
Home occupation. An occupation or profession which is: Customarily carried on in a dwelling unit or in a building or other structure accessory to a dwelling unit; carried on by a member of the family residing in the dwelling unit; clearly incidental and secondary to the use of the dwelling unit for residential purposes; conforms with the following conditions:
- Sec. 27-201, Home occupation (a), Zoning (Code of Ordinances Chapter 27), p. 51
(a) The occupation or profession shall be carried on wholly within the principal building.
- Sec. 27-201, Home occupation (b), Zoning (Code of Ordinances Chapter 27), p. 51
(b) Not more than two (2) persons outside the family shall be employed in the home occupation.
- Sec. 27-201, Home occupation (c), Zoning (Code of Ordinances Chapter 27), p. 51
(c) 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. 27-201, Home occupation (d), Zoning (Code of Ordinances Chapter 27), p. 51
(d) No nuisance shall be generated, including but not necessarily limited to offensive noise, vibration, smoke, dust, odors, heat, glare, traffic or parking.
- Sec. 27-201, Home occupation (e), Zoning (Code of Ordinances Chapter 27), p. 51
(e) The home occupation shall not use more than twenty-five (25) per cent of the total floor area of the residential structure.
- Sec. 27-201, Home occupation (f)(9), Zoning (Code of Ordinances Chapter 27), p. 52
(9) Beauty parlors and beauty shops utilizing no more than 2 chairs serving no more than 2 customers at any given time.
- Sec. 27-201, Home occupation (g), Zoning (Code of Ordinances Chapter 27), p. 52
(g) The following uses are specifically prohibited: (1) Lodging establishments. (2) Restaurants or other public eating places. (3) Shelters.
- Sec. 27-1562. Use restrictions (signs), Zoning (Code of Ordinances Chapter 27), p. 373
No sign shall be erected in any residential use district (AA, A, G, RF) provided for under the terms of this Chapter unless specifically permitted by the terms of this Article.
- Sec. 27-1562(a), Zoning (Code of Ordinances Chapter 27), p. 373
(a) A single sign not over two (2) square feet in area attached to a building or detached and located in the front yard describing an apartment house or a conforming nonresidential building or use.