Licensing Requirements for Home Based Businesses
Starting a home-based business is a rewarding and flexible option for thousands of small business owners. However, starting up is not as simple as hanging an “Open for Business” sign on the front door. Understanding the required permits you’ll need to legally operate your business can save you from big head-aches (and big fines) down the road. Regulations vary based on industry and location, and while there is no one-size-fits-all permit checklist for home-based businesses, there are general guidelines home-based business owners should be aware of:
1. General Business Licenses
Most home-based businesses owners will be required to file an application for a general business permit from their city or county to legally operate in that area. County registrations may apply to you if your home-based business is outside the jurisdiction of a town/city.
2. Professional and Trade Licenses
Some industries may have to obtain professional/occupational licenses, such as a nursing certificate or a real estate license, at the state government level. You can contact your state’s business license office for a complete list of the occupations that require licensing in your area.
3. Home Occupation Permit
Many city and county zoning and planning agencies require all home-based businesses to get a Home Occupation Permit. If a permit is not required in your city, the zoning office should tell if your neighborhood is zoned for the business activity you plan to conduct from your home. If your area is not zoned for your type of business, you may need to file for an additional variance or conditional-use permit. Visit the Zoning Laws for Home Based Businesses page for more information about zoning laws for home-based businesses.
4. Sales Tax Permit
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