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Home-Based Businesses in Maine: rules in 20 towns compared

Can I run a business out of my home? Here's how each town answers it. Click a town for the details and the exact ordinance text.

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This page is for Maine residents who want to run a business out of their home, from a home office to a bakery, studio or small shop. Maine has no statewide home-occupation law, so whether you can do it, and with what limits, is mostly up to your town's zoning. A few state rules may apply: you must register and collect sales tax if you regularly sell taxable goods or services, making shelf-stable foods to sell requires a $20-a-year state Home Food License, and from July 1, 2027, state law makes family child care a permitted use in residential zones. In the shoreland zone, the DEP's model ordinance limits home occupations to 2 employees besides family members living there.

All 20 towns we cover allow home businesses. Ten require a permit or approval from the Code Enforcement Officer, Kittery and Scarborough send busier home businesses to the Board of Appeals, and 8 allow home occupations that meet their standards, generally without a separate permit. Most cap non-resident employees at one or two, and many limit the share of the home's floor area the business can use, along with signs and daily vehicle trips. Pick your town below.

Town-by-town comparison

TownVerdictShort answer
Cape Elizabeth
Cumberland Co.
Allowed with a permitYes. In Cape Elizabeth's residential districts a low-impact "home occupation" (at most 1 non-resident employee, no regular client or delivery visits, using no more than 40% of the home's floor area) is a permitted accessory use, but it needs a Certificate of Occupancy from the Code Enforcement Officer before it starts. A busier "home business" (up to 2 non-resident employees and limited added traffic) needs a conditional use permit from the Zoning Board of Appeals.
Yarmouth
Cumberland Co.
AllowedYes. A home occupation is allowed as an accessory use in any Yarmouth district that allows homes, as long as it meets 10 performance standards. You submit a written description of the business to the Planning Department. Limits include one non-resident employee, no more than 20% of the home's living space, no more than two customers at a time, and a sign of up to 2 sq ft.
Cumberland
Cumberland Co.
Allowed with a permitYes. Home occupations are allowed in any single- or two-family home or its accessory building, and the Code Enforcement Officer issues a change of use permit if the business meets the standards, including no more than 2 non-family employees and inconspicuous signs. A business that doesn't meet every standard needs a special exception from the Board of Adjustment and Appeals.
North Yarmouth
Cumberland Co.
Allowed with a permitYes. Home occupations are a permitted use with Code Enforcement Officer approval in the Village Center, Village Residential and Farm and Forest districts, and need Planning Board site plan review in the Residential Shoreland district. You may have one non-family employee, use up to 50% of the home's floor area, generate up to 40 vehicle trips a day, and put up one sign of up to 4 sq ft.
Freeport
Cumberland Co.
AllowedYes. Home occupations are allowed in every Freeport zoning district if they stay secondary to living in the home. Limits: no more than 25% of the home's floor area (basement excluded) or 600 sq ft of an accessory building, at most 2 non-resident employees on site, enough off-street parking for employees and customers, and no nuisance noise, odor, or traffic. Signs must follow the town Sign Ordinance.
Scarborough
Cumberland Co.
Allowed with board reviewUsually 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.
South Portland
Cumberland Co.
AllowedYes. 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.
Portland
Cumberland Co.
AllowedYes. Portland allows home occupations as an accessory use if the business stays incidental to the home and meets the code's standards. Up to 2 nonresident employees may work on site, signs are limited to one unlit sign of 2 sq ft, and clients may visit only from 7 a.m. to 8 p.m. Remote work, and businesses with no employees, no customers and no outside impacts, aren't home occupations and are exempt.
Gorham
Cumberland Co.
Allowed with a permitYes. 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.
Harpswell
Cumberland Co.
AllowedYes. Home occupations are allowed in all of Harpswell's zoning districts, and most need no permit. You need a Code Enforcement permit only if the business has public restrooms or showers or serves food to the public, and a Planning Board permit in Resource Protection areas unless the business is very low-impact. You can have up to 2 full-time employees besides residents and use up to 25% of the home's floor area.
Brunswick
Cumberland Co.
AllowedYes. Brunswick permits home occupations in single- and two-family homes as long as they meet the zoning performance standards: no more than 2 non-resident employees on site at once, no more than 35% of the home's floor area or 750 sq ft (whichever is less), and no more than 16 vehicle trips a day; the ordinance doesn't describe a separate home-occupation permit. A home office used only by residents, with no signs, customers or outdoor storage, isn't regulated at all.
Topsham
Sagadahoc Co.
AllowedYes. Topsham allows home occupations that meet the standards in Zoning §225-45, as summarized in a 2015 Codes Office handout (we could not review the current ordinance text). A standard home occupation must be run by residents, kept inside the home or an accessory building, and stay under 20 vehicle trips a day. A larger 'major' home occupation can have up to 2 non-resident workers on site.
Kennebunk
York Co.
AllowedYes. Home occupations are a permitted accessory use in Kennebunk's residential districts, as long as you meet the Article 10, Section 14 standards. You can have at most 1 full-time or 2 part-time non-resident employees and one sign of up to 2 sq ft. The business can use no more than 30% of the home's floor area or 600 sq ft, and can generate no more than 10 vehicle trips a day.
York
York Co.
Allowed with a permitYes. York allows one home occupation per single-family home with a Use Permit from the Code Enforcement Officer. The allowed size depends on your area's class on the town's Home Occupation Classes map: Class 1 is up to 450 sq ft inside the house with one outside employee; Class 3 is up to 1,600 sq ft with three employees. You can have one unlit sign of up to 4 sq ft.
Kittery
York Co.
Allowed with board reviewUsually yes. In most residential zones, Kittery's 2022 land use code allows a minor home occupation (up to 3 workers, residents included) after Code Enforcement Officer review. A larger major home occupation (up to 5 workers) needs a public hearing and Board of Appeals approval as a special exception.
Ogunquit
York Co.
Allowed with a permitYes. In Ogunquit's residential districts a home occupation is allowed with a permit from the Code Enforcement Officer, as long as it stays inside the house or an accessory building, has no more than two non-resident employees, uses at most a 2-square-foot sign, and generates no more than 20 vehicle trips a day.
Wells
York Co.
Allowed with a permitYes, with a building permit and use permit from the Code Enforcement Officer. According to the Code Enforcement Office's Home Occupation packet, a town handout that reprints Land Use Ordinance §145-51 (we couldn't review the current ordinance itself), there are three classes of home business. The smallest, Class 1, stays inside the house, uses no more than 20% of the living space (500 sq ft max), and can have one non-resident employee.
Camden
Knox Co.
Allowed with a permitYes. Home occupations are a permitted accessory use in Camden's residential districts if they meet the town's standards, and starting one likely needs a use permit from the Code Enforcement Officer. The main limits: no more than one full-time or two part-time non-resident employees, use of no more than 50% of the home's floor area, no outside storage or display, and in residential and rural zones no more than 10 vehicle trips a day. Our copy of the zoning ordinance runs only through June 2022.
Rockport
Knox Co.
Allowed with a permitYes. Home occupations are a permitted use throughout Rockport's residential and village districts, but you need a use permit from the Code Enforcement Officer and must meet the Section 811 standards: the business must be inside the home or an accessory building, use no more than 50% of the floor area, and involve no more than six people, at most two from outside the family. Projects generating more than 20 business vehicle trips a day need Planning Board site plan review.
Mount Desert
Hancock Co.
Allowed with a permitYes. Most home occupations and home offices in Mount Desert need a permit from the Code Enforcement Officer, unless they are temporary or casual. Besides you, the business can employ up to 3 family members who live there or up to 2 people who live elsewhere, and all goods sold must be made on the property. A sign can be up to 2 sq ft.

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.

State sources: Maine Revenue Services: Sales and Use Tax FAQ (registration) · Maine DACF: Home Food License 101 · 30-A M.R.S. §4364-D (Child care services in residential areas) · LD 2173 (P.L. 2025, c. 733): application dates · DEP Chapter 1000 (home occupation definition and land use table)

Common questions about home businesses in Maine

Do I need a permit to run a business from home in Maine?
There's no statewide home-business permit; it depends on your town's zoning. Of the 20 towns we cover, 10 require a permit from the Code Enforcement Officer, 2 send busier home businesses to the Board of Appeals, and 8 allow home occupations that meet their standards, generally without a separate permit.
Do I need a license to sell baked goods from home in Maine?
Yes. Making shelf-stable foods such as baked goods and jams 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.
Do I have to collect sales tax for a home business in Maine?
If you regularly sell taxable goods or services from home, you must register with Maine Revenue Services and collect sales tax.
Can I run a home daycare in Maine?
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. Towns must follow it starting July 1, 2027. Until then, your town's rules apply, and state child care licensing applies separately.
How many employees can a home business have in Maine?
Maine has no statewide home-occupation law, so it's up to your town. In the shoreland zone, the DEP's model ordinance allows no more than 2 employees besides family members living there. Most of the 20 towns we cover cap non-resident employees at one or two.

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