Home Based Business

License Overview 

A City of Chicago business license is required to operate a business out of your home. A home based business or “home occupation” means a resident’s use of their home as a business where the business is solely secondary to the primary use of the home as a place to live. Only certain activities may be licensed as a home occupation.

related licenses 

1. Certain activities cannot be licensed as home occupations: repair or dispatch of motor vehicles, animal care uses, fortune-telling in any form, barber shops, dancing schools, any food uses, massage establishments, any funerary uses, any medical uses, public place of amusement, any firearms uses, any warehousing or construction related uses, anything requiring a Children’s Services Facility license.
2. Licensed food preparation is prohibited in home kitchens. You may be able to prepare certain limited foods in a home kitchen by obtaining a Cottage Food Registration from the Department of Public Health.

Application Requirements 

The business owner’s home address must be indicated on their government issued ID provided as part of the application process.

required Documents 

  • Documents required to identify the business depend on the business legal entity type. For more information, see the Required Documents page.
  • Storage lease, for specific business types (e.g. home repair, cleaning).

licensing application Steps 

Submit initial business information in person. Note that the required government-issued ID must have the business owner’s home address

  1. Receive zoning approval from the City
  2. Complete and submit a full license application
  3. Make payment for the license
  4. Receive license once all requirements are met.

For more information on license application steps, see the Business License Application Steps webpage.

Cost 

$250 license fee

How to Apply 

In person: Visit the Small Business Center Visit Us webpage for wait times, location, and hours of operation.

Operating Requirements  

  • The business activity conducted in the home must be accessory, incidental and secondary to the principal residential use of the home.
  • Certain activities cannot be licensed as home occupations: repair or dispatch of motor vehicles, animal care uses, fortune-telling in any form, barber shops, dancing schools, any food uses, massage establishments, any funerary uses, any medical uses, public place of amusement, any firearms uses, any warehousing or construction related uses, anything requiring a Children’s Services Facility license.
  • The home occupation must be conducted completely within the home (except that services may be performed off-site).
  • No exterior signage related to the home occupation may be posted.
  • No more than one non-resident employee may work within the home; no more than two patrons may be in the home at any one time, and no more than ten patrons may be in the home during any 24-hour period.
  • No more than one bulk delivery per day is allowed to home based businesses. All deliveries must occur between 8 AM and 6 PM. Tractor trailer deliveries to home based businesses are not permitted.

Renewal Requirements 

Home Occupation licenses are issued for a period of two years and must be renewed prior to expiration. For renewal information, see the Renewal page.

Resources 

For questions, call 312-74-GOBIZ (744-6249) or 312.744.1944, or email businesslicense@cityofchicago.org