Licensing a Home-Based Business

Licensing a Home-Based Business
If you have elected to have a home-based business, restrictions may not permit you to get a business
license to operate in your city. You may be forced to move your business outside the home or
operate outside of the law. If your family happens to be moving and you are a seasoned
entrepreneur, you may wish to select your home partly on the basis of whether or not that city's
ordinances will allow you to operate your business – or any business – out of your home.
If you are thinking of living in a planned community, don't forget to check into any restrictions that
the association may have that relate to business use of your home. Even if the city will allow you to
operate your business, the association may preclude that option.
The passage of the Model Zoning Ordinance did much to help protect the legalities of working from
home. However, different types of businesses may be subject to special restrictions by the city or
county. For instance, a mail-order business may be allowed in your home, but a direct-sales
operation may be prohibited. Repair services may be allowed, but only if they do not involve the use
of toxic chemicals. Food services will probable be disallowed, but the city may allow you to use
your home as an administrative office for your business.
In most cities and planned communities, home-based businesses are not permitted to change the
appearance of the neighborhood and, therefore, you may be prohibited the use advertising or
equipment that can be viewed from the street. Very often, police or fire inspections will be
conducted to see that your business does not violate any of several restrictions. Doing some diligent
ground work ahead of time may eliminate the possibility of selecting a business location only to find
later that it was not an appropriate and/or legal choice.