How to Start a Bed and Breakfast, Inn or Campground in Maine: HIP Lodging License $135 to $270, the 5-Room Private Home Notice and the 9% Lodging Tax

Census 2023 counted 135 bed and breakfasts and 486 hotels with employees in Maine. If you want to join them, the most useful thing to know early is that Maine has no general statewide business license and no general town license. Forming an LLC or registering an assumed name is a filing, not a license. What you actually need depends on the activity: lodging is licensed by the Department of Health and Human Services Health Inspection Program (HIP), and most other permits are set by activity and by your town. This guide walks through how to start a bed and breakfast business in Maine, from the entity filing to the HIP license and tax registration.

What You Need Before You Start

• A business name checked against the Secretary of State's business search at apps3.web.maine.gov/nei-sos-icrs/ICRS
• A decision on structure: sole proprietor, general partnership, LLC or corporation
• A registered agent with a physical Maine street address (if you form an LLC or corporation)
• A property plan showing every guest room, bathroom, exit and common area, with the room count clearly marked
• A call list for your town or city office (zoning, code enforcement and fire), since local approvals vary
• Your HIP application, the fee payment and a timeline for inspection
• A sales and lodging tax registration with Maine Revenue Services
• Insurance quotes for property, liability and any liquor exposure
• A startup budget that includes filing fees, license fees, renovation, furnishings and several months of operating reserves

Step 1: Decide Which Lodging License Category You Fall Into

Your room count and how you operate determine your HIP fee. The fee schedule was revised on February 2, 2026:

Operation	HIP License Fee
Bed and breakfast, 5 rooms or less	$135
Bed and breakfast, 6 rooms or more	$205
Lodging place (inn), 4 to 15 rooms	$205
Lodging place (inn), 16 to 75 rooms	$240
Lodging place (inn), over 75 rooms	$270
Sporting or recreational camp	$240
Campground, 5 to 24 sites	$205
Campground, 25 to 124 sites	$240
Campground, over 124 sites	$270
Combined eating place and lodging	$300

Where a delegated municipality issues the license instead of HIP, the fee is $100. Lodging places, sporting camps and campgrounds need a HIP license under 22 MRSA 2492.

Maine also has exceptions under 22 MRSA 2501 that matter for small operations. A private home letting no more than 5 rooms is not a licensed lodging place. Three or fewer rooms, and cottages, are not a lodging place either. Vacation rentals need no HIP license at all. The line between a small B&B and an exempt private home is where most first-time owners get confused, so do not assume which side you are on. Whether a given advertised bed and breakfast falls under an exception is something you must confirm with HIP, ideally in writing, before you take bookings.

Step 2: Choose Your Legal Structure and File It

Your structure controls which office you file with. Sole proprietors and general partnerships do not form an entity with the state. Instead, they file a sworn assumed-name certificate with the clerk of the city or town where the business is carried on. LLCs and corporations file with the Maine Secretary of State's Division of Corporations, UCC and Commissions.

Maine does not accept online formation filings. Formation forms are fillable PDFs that you print and mail or deliver with payment. Current fees are:

Filing	Fee	Form
LLC Certificate of Formation	$175	MLLC-6
Corporation Articles of Incorporation	$145	MBCA-6
Name reservation (held 120 days)	$20	MLLC-1
Assumed name for a registered LLC or corporation	$125	ASUM-5
Registered agent appointment or change	$35	CLKRA-3

Expedited handling is available for an added fee: $50 for 24-hour service or $100 for immediate service, completed when the request is made. Availability depends on staffing, and the Bureau notes delays during high volume of expedited requests. The Secretary of State's current corporations pages state a processing time of 2 to 7 business days for corporate filings, but that figure has varied across past snapshots, so confirm it before you set an opening date.

A sole proprietor filing an assumed name with the municipal clerk should ask the clerk for the local fee, because municipal fees are set by each city or town and the state does not publish them.

Step 3: Appoint a Registered Agent

Every Maine LLC and corporation must appoint and keep a registered agent under Title 5, chapter 6-A. The agent is either a commercial registered agent listed with the Secretary of State (identified by a CRA public number) or a noncommercial agent. A noncommercial agent must give a physical street address in Maine. A P.O. box does not qualify. The agent must consent to serve, and that consent is certified on your formation document.

If you own the inn yourself, you can often serve as your own noncommercial agent, but the address must be one where you will reliably receive legal papers. Many owners use a commercial agent to avoid missed notices while they are traveling or during peak season.

Step 4: Clear Local Approvals with Your Town

Maine has 482 organized municipalities: 23 cities, 430 towns and 29 plantations. Counties license nothing for ordinary businesses, so your real local contact is the municipal office. Maine has no general town business license, but municipal officers license named activities by ordinance, and the fees vary widely from town to town. Lodging conversions often trigger zoning review, change-of-use rules, building code and fire safety requirements. Ask about these before you buy the property or sign a lease, not after. Confirm all local requirements and fees directly with your town office.

Municipal officers and your local fire department may also need to inspect smoke detectors, egress windows and fire separation between rooms. Plan for that inspection and for any work it requires in your renovation budget.

Step 5: Apply for Your HIP License and Pass Inspection

Apply to the Department of Health and Human Services Health Inspection Program for the license category that matches your room count and operation. The fee from Step 1 applies, and the license is issued under 22 MRSA 2492. Keep your floor plan current, because the room count on your application is what determines your category. If you add rooms later, notify HIP before you rent them.

If you plan to serve meals to the public, or serve food beyond ordinary guest breakfast, ask HIP whether an eating place license applies. The combined eating and lodging license is $300. Confirm your exact service plan with HIP before you buy kitchen equipment.

Step 6: If You Use the Private Home Exception, Post the Required Notices

A private home letting no more than 5 rooms is not a licensed lodging place, but it carries its own obligations. You must post an 18-point card in each rented room. You must also give guests a notice stating that the State does not regulate the operation. Do not treat the exception as a shortcut around these requirements. Missing postings are an easy thing for an inspector or a guest to notice, and they undermine the exemption if your operation is later questioned.

The 5-room exemption and the $135 license for bed and breakfasts with 5 rooms or less both exist. Which one applies to you depends on how HIP classifies your specific property, so get that answer in writing.

Step 7: Register for Sales and Lodging Tax

Register with Maine Revenue Services at maine.gov/revenue and apply for a sales tax permit through revenue.maine.gov. Maine's rates are:

• Lodging: 9%, with an exemption for guests staying 28 or more consecutive days (36 MRSA 1811, 1760(20))
• Prepared food and on-premises liquor: 8%
• General sales: 5.5%

Breakfast included in the room rate is a point you must resolve. Whether an included breakfast is taxed as prepared food or treated as part of the lodging charge is a question for Maine Revenue Services and your CPA, so get that answer before you publish room rates. Keep daily records of room revenue, meals and any separately charged items, since they determine your monthly or periodic filings.

Step 8: Check Liquor, Food and Trade Licensing

If you want to serve wine or beer, the Bureau of Alcoholic Beverages and Lottery Operations (BABLO) issues a bed and breakfast liquor license. Check with BABLO for current requirements and fees, because they are not settled figures in this guide.

Maine has no HVAC or general contractor license. However, many trades are licensed by state boards under the Department of Professional and Financial Regulation. If you or your contractors do electrical, plumbing or other licensed trade work during renovation, confirm the requirements with the relevant board before work begins. Business Answers, a free assistant run by the Department of Economic and Community Development at maine.gov/businessanswers, can help you identify which activity-based licenses apply to your plan.

Step 9: File Your Annual Report and Keep It Current

LLCs and corporations must file an annual report at $85 each year. The first report is due between January 1 and June 1 of the year after formation. After that, the report is due June 1 each year. You file it through Annual Report Online (InforME) at apps1.web.maine.gov. Maine has no LLC franchise tax and no separate LLC annual tax, so the $85 report is the only recurring state filing charge for a domestic LLC. An LLC is taxed by default as a pass-through, so members report income on Maine individual returns at rates from 5.8% to 7.15%. If you elect corporate treatment, the corporate income tax rates run from 3.5% to 8.93%.

Common Mistakes to Avoid

• Assuming a state business license covers everything. Maine has none for general operation. Each activity needs its own check.
• Relying on the private home exception without written confirmation from HIP. If HIP later classifies you as a lodging place, you may need to stop renting until you are licensed.
• Skipping the local conversation. Zoning, change-of-use and fire requirements can stop an opening date. Ask before you buy.
• Using a P.O. box for a noncommercial registered agent. A physical Maine street address is required.
• Treating expedited service as guaranteed. Availability depends on staffing at the time of your request.
• Missing the June 1 annual report and the first-report window that opens January 1 after formation.
• Setting room rates before confirming tax treatment for included breakfast and for guests staying 28 or more consecutive days.
• Adding rooms without notifying HIP. Room count controls your fee category and your exemption status.

What Results to Expect

Owners who complete these steps in order often find the process is mostly paperwork and inspection scheduling, not one large hurdle. Once the entity is formed, the HIP license is issued, and the tax permit is in place, you may be able to take bookings. Timelines vary with filing volume, municipal review and inspection backlogs, so build in a buffer rather than locking in an opening date early. Good preparation can help you avoid delays, but no guide can promise a specific opening date or revenue level for your property.

Where to Get Help

The Maine Small Business Development Centers (Maine SBDC) at mainesbdc.org offer advising for new owners, and the U.S. Small Business Administration's Maine district page is at sba.gov/district/maine. For entity filings, start with the Secretary of State's page at maine.gov/sos/corporations-commissions, and use the LLC forms page at the LLC forms page to download current forms.

Important Disclaimer

This article is informational content, not legal or tax advice. Fees, forms and processing times change, and the figures here reflect official sources as of October 28, 2026. Confirm every fee and requirement with the agency that administers it before you file or pay. Because lodging licensing, entity choice, liquor licensing and sales tax treatment can be complex, consult a qualified Maine attorney and a CPA before you commit to a structure or sign a property agreement.