What Maine expects from a new trade business

No builder's license on the state's list. Trades are another matter.

Maine's Office of Professional and Occupational Regulation lists electricians, plumbers, oil and solid fuel technicians, and propane and natural gas technicians. Pump installers and elevator mechanics have their own licenses too. General contractors and handymen aren't on that list. An electrical installation has to be made by a licensed electrician, except for low-energy installers like phone, cable and data, limited incidental work like light fixtures and switches, and a person working on their own existing single-family home. Plumbing needs a license wherever a permit is required.

Where the state does reach builders is the contract. A home construction contract over $3,000 has to be in writing, signed by both sides, and copied to both before any work starts, with required parts like work dates and price. That covers building, remodeling or repairing a home of up to 3 units, including trade work. The down payment can't top one-third of the price. The contract also carries the statute's warranty, dispute resolution and change order wording, plus the Attorney General's consumer information as an addendum. You can leave required parts out only if you first tell the homeowner their rights under the law and you both agree.

A violation can draw a $100 to $1,000 forfeiture per violation and is prima facie evidence of an unfair trade practice. An unintentional bona fide error is a defense, and a civil action has to come within 2 years. Towns can have their own rules. A construction attorney can look at your contract.

Source: Maine OPOR, professions · 32 MRS 1201, electrical license · 32 MRS 3302, plumbing license · 10 MRS 1486, definitions · 10 MRS 1487, home construction contracts · 10 MRS 1490, penalties · 10 MRS 1488, change orders

Who to call: an attorney near you

Every employer, and that includes independent contractors who hire

Maine says every private employer, including an independent contractor who hires and pays employees, has to carry comp or self-insure. There's no headcount floor in the law for construction.

A true independent contractor isn't your employee, and normally neither are his employees, but that has limits.

Corporate executive officers count as employees. An owner of a corporation or professional corporation with at least 20% of the voting stock can waive coverage in writing to the Board. The Board has to find the ownership, the waiver can't be a condition of the job, and you can revoke it on 30 days' notice.

Knowingly going without is a Class D crime, plus a civil penalty of up to $10,000 or 108% of the premium you should have paid, whichever's larger. An insurance agent who writes contractors can walk you through it.

Source: 39-A MRS 102, definitions · 39-A MRS 401, liability of employer · 39-A MRS 324, penalties · Maine Workers' Compensation Board

Who to call: an insurance agent near you

Getting paid: 90 days, then 120, and that's it

Maine moves fast. These day counts run from when you stop working or furnishing:

• No contract with the owner (sub or supplier): within 90 days, record a sworn statement at the county registry of deeds and mail a copy to the owner.
• Contract with the owner: that 90-day filing doesn't apply to you.
• Everyone: file suit in Superior or District Court within 120 days of your last labor, materials or services.

Here the suit itself is what preserves the lien, so you're talking to a lawyer soon after the job goes bad, not later. With no contract with the owner, you can't serve the owner until 30 days after filing, and the return of service deadline stops running for those 30 days. Record notice of the complaint at the registry within 60 days. Skip that and the lien isn't void, but a bona fide purchaser takes free of it.

With no owner contract, money the owner paid the contractor before your suit is served or your pay-twice warning arrives cuts into your lien, so send it early. The statute prints the wording. It doesn't apply to business, commercial or industrial jobs unless the owner lives on the premises. An owner can also stop your lien in advance, by written notice, for work you haven't done yet.

Attachment is a separate route, within 180 days of your last work. On public contracts over $125,000, look to the payment bond, with its own notice and a 1-year limit to sue. A construction attorney can get this done on time.

Source: 10 MRS 3253, dissolution unless claim filed · 10 MRS 3255, liens preserved by action · 10 MRS 3261, certificate to registry · 10 MRS 3252, owner preventing a lien · 10 MRS 3262, attachment · 14 MRS 871, public payment bond

Who to call: an attorney near you

You pay on materials, unless title passes first

Maine sees a contractor as the last user of the materials. You buy them, you build them in, and title passes to the customer only after they've become real property, so you pay sales tax on what you buy.

There's a narrow alternate. If you're registered as a retailer and title passes to the customer before installation, you can buy with a resale certificate and bill the customer sales tax on the materials. The state wants to see that intent in your agreement or invoices.

Jobs for exempt organizations and governments can use a contractor's exempt purchase certificate, but only for materials permanently affixed, not tools or fuel. Fabrication services changed tax treatment at the start of 2026. A CPA who works with contractors can check your invoicing.

Source: Maine Revenue Services, Instructional Bulletin No. 4, Contractors and Subcontractors · Maine Revenue Services, bulletins list

Who to call: a CPA or tax pro near you

LLC, sole proprietor, or S-corp?

Forming an LLC with the Maine Secretary of State costs $175. The annual report is $85, filed between January 1 and June 1 every year, and a late filing adds a $50 penalty. There's no franchise tax on LLCs.

Pass-through profit lands on your personal return, in brackets. Rates run from 5.8% to a top rate of 7.15%.

When an S-corp pays off is a numbers question. Bring what the business clears after your floor rate to a CPA and have them run it.

Source: 36 MRS 5111, income tax rates · 31 MRS 1680, LLC fees · 31 MRS 1665, annual report

Who to call: a CPA or tax pro near you