Zoning Rules for Home Businesses

Municipalities govern whether you can run a business out of your home.

Your city or county planning or zoning department has probably established zones for stores and offices (commercial zones), factories (industrial zones), and houses (residential zones). In some residential areas -- especially in affluent communities -- local zoning ordinances absolutely prohibit all types of business. In the great majority of municipalities, however, residential zoning rules allow small, non-polluting home businesses, as long as any home containing a business is used primarily as a residence and the business activities don't negatively affect neighbors.

Read Your Local Ordinance

As you read the ordinance, keep in mind that zoning ordinances are worded in many different ways to limit business activities in residential areas. Some are vague, allowing "customary home-based occupations." Others allow homeowners to use their houses for a broad list of business purposes (for example, "professions and domestic occupations, crafts, or services"). Still others contain a detailed list of approved occupations, such as "law, dentistry, medicine, music lessons, photography, or cabinetmaking."

Ask the Planning Department

If you read your ordinance and still aren't sure whether your business is okay, you may be tempted to ask for a meeting with zoning or planning officials. But it can be a mistake to call attention to your home business plans until you are sure that you'll meet the requirements. One way to cope with this problem is to have a friend who lives nearby, but who doesn't plan to open a home-based business, make detailed inquiries.

Appeal If Necessary

In many cities and counties, if a planning or zoning board says that you can't run your business from your home, you can appeal -- often to the city council or county board of supervisors. While this can sometimes be an uphill battle, it is likely to be less so if you have the support of all affected neighbors.

You may also be able to get an overly restrictive zoning ordinance amended by your municipality's governing body. For example, in some communities, people are working to amend ordinances that prohibit home-based businesses entirely or only allow "traditional home-based businesses," to permit those that rely on the use of computers and other high tech equipment.

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