Can I run a business from home in Wells, Maine?
Yes, 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.
| Permit | Building permit and use permit from the Code Enforcement Officer [6] |
| Class 1 size | Up to 20% of habitable space, max 500 sq ft, inside the house only [1] |
| Class 1 employees | 1 non-occupant employee on site, plus 1 parking space if so [2] |
| Class 2 size | Up to 800 sq ft (house or accessory building) [7] |
| Class 2 minimum lot | 20,000 sq ft net area [3] |
| Class 3 | Up to 1,600 sq ft; up to 3 non-occupant employees [4] |
| Class 3 minimum lot | 100,000 sq ft net area [8] |
| Peak-hour trips | Class 1: 4; Class 2: 8; Class 3: 12; customers daytime only [5] |
Source note
This comes from the Code Enforcement Office's Home Occupation packet. The packet reprints Land Use Ordinance §145-51, but it isn't the ordinance itself, and it's filed under 2015 forms. The packet includes an older version of §145-51 and a sample letter based on that version. We used the later, three-class version on pages 4-6. We couldn't download the current Chapter 145 to check for newer amendments.
Three classes
A home business is allowed as an accessory use to a dwelling if it meets §145-51.
- Class 1: inside the house only, using up to 20% of the habitable space but no more than 500 sq ft. No outdoor activity or storage. No minimum lot size [1]. One employee who doesn't live there may work on site, with one extra parking space if so [2].
- Class 2: in the house or an accessory building, up to 800 sq ft. Up to two non-occupant employees on site. Up to 1,600 sq ft of screened outdoor activity or storage. Minimum lot of 20,000 sq ft net area [3].
- Class 3: up to 1,600 sq ft, up to three non-occupant employees, up to 4,400 sq ft of screened outdoor area, and a minimum lot of 100,000 sq ft net area [4].
Office, personal service, service, contractor, wholesale and manufacturing uses are allowed in all classes. Retail businesses are allowed only in Class 3, but every class may make small retail sales tied to the business. Funeral homes and bottle redemption are prohibited.
Traffic, signs and appearance
Peak-hour trips are capped at 4 for Class 1, 8 for Class 2 and 12 for Class 3, and customer traffic is limited to daytime [5]. Signs follow §145-40. Outdoor lighting must stay at normal household levels, and parking must be set up so no one has to back out onto the road.
Approval
You need a building permit and use permit from the Code Enforcement Officer before you open [6]. The packet asks for a cover letter, a floor plan, a plot plan, and the owner's permission if you rent. After setup you need a Certificate of Occupancy inspection. Check with the Town Clerk about a business license.
See how Wells compares with 8+ other Maine towns on home-based businesses →
Next steps
- Decide which class fits your business, then confirm the current §145-51 text with the Wells Code Enforcement Office.
- Apply for a building permit/use permit with a cover letter, a floor plan of the business space, and a plot plan showing parking and storage.
- If you rent, include a letter from the property owner giving permission.
- After setup, schedule the Certificate of Occupancy inspection, and ask the Town Clerk whether you need a business license.
Common questions
- Can I run a business from my home in Wells, Maine?
- Yes, with a building permit and use permit from the Code Enforcement Officer. According to the Code Enforcement Office's Home Occupation packet, there are three classes of home business. We couldn't review the current ordinance itself.
- What is a Class 1 home business in Wells, Maine?
- The smallest class. It stays inside the house, uses no more than 20% of the living space (500 sq ft max), and can have one non-resident employee. There's no minimum lot size and no outdoor activity or storage.
- How big a lot do I need for a larger home business in Wells, Maine?
- Class 2, up to 800 sq ft, needs a minimum lot of 20,000 sq ft net area. Class 3, up to 1,600 sq ft and up to 3 non-occupant employees, needs 100,000 sq ft net area.
- How much traffic can a home business generate in Wells, Maine?
- Peak-hour trips are capped at 4 for Class 1, 8 for Class 2 and 12 for Class 3, and customer traffic is limited to daytime.
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
- §145-51A(1) Class 1 (as reprinted in packet), Home Occupation handout (Code Enforcement), p. 4
a) Located within the principal residential structure only. b) Shall occupy up to 20% of habitable space, not to exceed 500 square feet.
- §145-51A(1)(c) Class 1, Home Occupation handout (Code Enforcement), p. 4
c) Not more than one employee, other than the home’s occupants, may work on site at any time, and one additional on-site parking space shall be provided if there is such an employee.
- §145-51A(2) Class 2, Home Occupation handout (Code Enforcement), p. 4
f) Minimum lot size: 20,000 square feet of net area.
- §145-51A(3) Class 3, Home Occupation handout (Code Enforcement), p. 4
b) Shall occupy 1,600 square feet or less of floor space. c) Not more than three employees, other than the home’s occupants, may work on site at any time, and one additional on-site parking space shall be provided per employee, if there are such employees, in addition to on-site parking required for the residence and customers.
- §145-51C General standards, Traffic, Home Occupation handout (Code Enforcement), p. 5
All home business related traffic shall not exceed the maximum number of peak hour trips based on Class 1 not exceeding four peak hour trips. Class 2 not exceeding eight peak hour trips, and Class 3 not exceeding 12 peak hour trips. Customer traffic shall be limited to daytime hours only.
- §145-51D, Home Occupation handout (Code Enforcement), p. 6
D. A building permit and use permit shall be obtained from the Code Enforcement Officer prior to establishment of a home business.
- §145-51A(2)(b) Class 2, Home Occupation handout (Code Enforcement), p. 4
b) Shall occupy 800 square feet or less of floor space.
- §145-51A(3)(f) Class 3, Home Occupation handout (Code Enforcement), p. 5
f) Minimum lot size: 100,000 square feet of net area.