All small businesses in Maine must adhere to the state’s licensing and permitting requirements, and sometimes federal or local requirements apply as well. You’ll need to be familiar with these, and with how to obtain them, if you’re starting a business in the state. This guide on Maine business licenses and permits should help.
Business licenses and permits help protect public health, public safety, and the community at large. These serve as tools by which governments can better ensure businesses follow applicable regulations. Obtaining a small business license or permit requires sharing at least some information about your business, its location and its activities.
The license and permit requirements that your business is subject to will depend on the business’s location, industry and operations. It’s important to check what your business needs to have, and then to obtain those licenses or permits. Not doing so could result in penalties, fines, and possibly even the closing of your business (at least temporarily).
Business licenses and business permits are often similar, and you may hear the terms used interchangeably. There are some common distinctions between the two, though. While these aren’t strict rules, you’ll generally find:
A commercial transport company’s requirements illustrate this general distinction. The company’s drivers need a commercial driver’s license. A permit might be needed to close a road for a specific delivery.
Your business could be subject to state, local and federal requirements. Licenses and permits are issued at all levels of government, and by many different departments or agencies.
Maine requires that businesses which sell goods or services obtain a seller’s permit. There is no fee for the permit, and it can instantly be obtained online. The purpose of a seller’s permit is so the state can track sales and use tax remittance.
You obtain this by registering with the Maine Revenue Services for Sales & Use Tax, Use Tax, and/or Income Tax Withholding. You can do so through the department’s website. A confirmation is immediately provided after you complete the registration process.
Note: Security features on the department’s website might cause the page to redirect. You can open the page using private/incognito browsing, or you can go back after being redirected.
Maine doesn’t have any other statewide license that all businesses operating in the state need. General business licenses are handled at the local level, and you likely only need a Maine business license if you’re in a state-regulated industry or profession. Those include various professional services, eating and lodging, alcohol sales, motor vehicle services, gaming, and agriculture (among others).
Local requirements are handled by town, city and county governments. These requirements can vary throughout the state, depending on where a business is located. Be sure to check each jurisdiction’s requirements if your business operates in multiple cities or counties.
You can check local license and permit requirements by contacting the appropriate clerks. Reach out to your town or city clerk if operating within a municipality, and also the county clerk where your business is.
Local government websites should also list license or permit requirements, but sometimes local websites are clunky or outdated. It’s best to check directly with the clerk.
There’s also no federal license or permit requirement for all businesses in the country, although businesses in various industries are subject to federal requirements.
For instance, your business might need specific federal licenses or permits if it’s in agricultural production, alcoholic beverages, aviation, commercial fisheries, firearms, explosives and ammunition, fish and wildlife, maritime transportation, mining and drilling, nuclear energy, television and radio broadcasting, or transportation and logistics. There are still other federally regulated industries.
You can contact the appropriate federal agency if you want to check requirements related to your business’s specific industry. If you’re unsure what agency to check with, the Small Business Administration (SBA) maintains an excellent list of federal license and permit requirements.
The first step in obtaining any licenses and permits that your business needs is simply finding out what’s required.
Start by registering for sales/use tax with the Maine Department of Revenue, and ask the appropriate state agency if you’re in a regulated industry. Make sure to check with the local town and local county clerks, and check the SBA’s list for federal requirements.
Each small business license or small business permit will have its own application. Some are quite simple and can be completed in minutes, while others can request extensive details about your business. Be sure to complete forms in their entirety, providing all requested information to the best of your ability.
The fees for business licenses and permits likewise vary. Registering for sales/use tax is free, but a liquor license could cost $1,000+. Here’s a general breakdown of fees (although there are exceptions):
You’ll find that many licenses can be applied for online. Some still require a paper application, however.
Processing times for applications vary, and so too does how you’re able to track your application’s status.
Many state and federal agencies let you track your application’s status online, usually through a business portal that the agency has set up. You probably need to contact the town or county clerk directly for a local application’s status.
It helps to know the typical processing time for applications, which can be anywhere from instantaneous to weeks. Check online to see if the typical processing time is posted, or ask someone if contacting a local clerk directly.
Many state license and permit applications have expedited processing, although this can be expensive.
Many licenses and permits require renewal. Annual renewal requirements are common, although there are other durations. A few might never require renewal.
Keep track of expiration dates and renew on time to avoid penalties. Check with the agency or government to find out what the renewal process is, and how much it’ll cost to renew.
To sum it up, it’s crucial to understand which licenses and permits you need to apply for and handle them properly to ensure your business operates legally. Doing so protects your company from penalties and other risks. As you research details like your location and industry, it may also be helpful to learn more about how to start an LLC in Maine to ensure your business is fully set up for success.
Failing to obtain the necessary licenses or permits can lead to fines, penalties, or even the closure of your business. It’s important that your business complies with all requirements.
Should you be caught without a needed license or permit, submit the application quickly and pay for expedited processing (if available). Many penalties add on each day that your business operates unlicensed.
Maine doesn’t have any universal state license requirement for sole proprietors. Local governments might have requirements that all businesses, including sole proprietors, register with the municipality or county.
Keep in mind that you likely do need a seller’s permit if providing goods or services that are subject to sales tax. A seller’s permit can be obtained from the Maine Department of Revenue.
Because Maine doesn’t have a statewide business license requirement, there isn’t any one license that must be renewed annually. A seller’s permit doesn’t have to be renewed.
If your business is subject to any industry-specific or local licenses or permits, many of those will have renewal requirements. It’s common for licenses and permits to require renewal each year, although some may need to be renewed after a different duration.
