Can I run a business from home in Los Altos, California?
Yes. Home occupations are a permitted use in Los Altos single-family zones, as long as only residents do the work inside the home, with no employees, no business storage and no more than eight client or delivery visits a day.
| Allowed in single-family zone | Yes, permitted use [1] |
| Employees | None (no assistants) [2] |
| Who runs it | Occupants of the home, inside the dwelling [2] |
| Customer visits | Max 8 visitors a day, including clients and deliveries [3] |
| Products sold | Only items produced on the premises [2] |
| Storage | No business storage indoors or outdoors [2] |
| Small family day care | Permitted [4] |
| Large family day care | Use permit required (local code) [6] |
Allowed by right
Home occupations are a permitted use in the R1-10 single-family district [1], so no use permit is needed if your business fits the definition. Other single-family districts likely have similar use lists; check the chapter for your zone.
What qualifies
The zoning code defines a home occupation narrowly [2]. It must:
- be run inside the dwelling by the people who live there, with no assistants employed;
- be clearly incidental to living there and not change the home's residential look or character;
- sell no products other than those made on the premises;
- use no mechanical equipment beyond normal household equipment;
- have no indoor or outdoor storage of business materials, equipment or supplies beyond normal household amounts.
Visits are capped at eight a day, counting both clients and deliveries [3]. That fits a home office, consulting, online sales of things you make, or occasional client meetings, but not a business with staff, frequent pickups or a stockroom.
Signs
Signs in R1-10 fall under the city's sign chapter (Chapter 14.68) [7], which wasn't among the documents we reviewed. Check it before putting up any business sign.
Child care
A small family day care is a permitted use [4]. The local code lists large family day care as a conditional use needing a use permit [5][6]. State law now treats large family day care homes as a residential use by right, so state law may override the use-permit requirement.
What's not covered here
The documents we reviewed don't address business licenses or parking rules for home businesses. Ask the city about business license or tax registration. State law separately protects home cottage food operations, which may have one non-family employee; state law may override the local no-assistants rule for them.
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Next steps
- Check that your business meets the definition: no employees, everything inside the house, no business storage, and no more than 8 client or delivery visits a day.
- Ask the city whether you need a business license or tax registration.
- Review Chapter 14.68 before putting up any sign, and contact the Planning Division with questions.
- For a large family day care, ask the Planning Division how state law affects the local use-permit requirement.
Common questions
- Can I run a business from home in Los Altos, California?
- Yes. Home occupations are a permitted use in Los Altos single-family zones, as long as only residents do the work inside the home.
- Can I have employees at a home business in Los Altos, California?
- No. Employees and assistants are not allowed; the occupants of the home run it.
- How many clients can visit a home business in Los Altos, California?
- No more than eight client or delivery visits a day.
- Can I sell products or store inventory at a home business in Los Altos, California?
- Only items produced on the premises can be sold, and business storage is not allowed indoors or outdoors.
California state protections for home-based businesses
California has no general statewide home-occupation law. Cities and counties set the rules on employees, signs, customer visits and parking. State law protects a few specific home businesses:
Family child care homes (Health & Safety Code §1597.45):
- A licensed small (up to 8 children) or large (7 to 14 children) family daycare home is a residential use by right under all local ordinances, including zoning. A city can't require a use permit.
- Cities can't charge a business license, fee or tax for operating one, and it isn't a change of occupancy under building codes.
- Local rules may apply only if they are identical to those for other homes in the same zone, whether the home is rented or owned.
Cottage food operations (Gov. Code §51035; AB 1616, effective 2013):
- Cities and counties can't prohibit home cottage food operations. They must allow them as a permitted use or through a permit limited to reasonable spacing, traffic, parking and noise standards.
- A cottage food operation has no more than one full-time-equivalent employee besides family or household members. Class A (direct sales only) is capped at $75,000 a year and Class B at $150,000, adjusted for inflation (H&S Code §113758).
- You must register (Class A) or get a permit (Class B) from the county environmental health agency.
Home kitchens selling meals (microenterprise home kitchen operations): allowed only where the city or county has authorized them, with a permit and a limit of 30 meals a day and 90 a week (§113825).
What the ordinance says
- Sec. 14.06.020(A)-(C) Permitted uses (R1-10), Municipal Code Chapter 14.06 - R1-10 Single-Family District, p. 1
The following uses shall be permitted in the R1-10 District: A. Single-family residences, including ancillary accessory structures; B. Accessory dwelling units as provided in Chapter 14.14 of this title; C. Home occupations;
- Sec. 14.02.010, "Home occupation", Municipal Code Chapter 14.02 - Definitions, p. 1
"Home occupation" means an occupation carried on in a home, provided no assistants are employed and provided such use is conducted within a dwelling and carried on by the occupants of the property, and is clearly incidental to the residential use of the dwelling, and does not change the residential character or appearance of the dwelling or adversely affect the uses permitted in the residential district of which it is a part, and wherein no product, other than those produced on the premises, is sold and no mechanical equipment is used, other than that necessary for domestic purposes, and where there is no indoor or outdoor storage of materials, equipment, and/or supplies, other than those necessary for domestic purposes.
- Sec. 14.02.010, "Home occupation", Municipal Code Chapter 14.02 - Definitions, p. 1
Home occupations shall be limited to a maximum of eight visitors a day which include clients and deliveries to and from the property.
- Sec. 14.06.020(E)-(F) Permitted uses (R1-10), Municipal Code Chapter 14.06 - R1-10 Single-Family District, p. 1
Animals as provided in Chapter 5.10 of this code; and F. Small family day care.
- Sec. 14.06.030 Conditional uses (R1-10), Municipal Code Chapter 14.06 - R1-10 Single-Family District, p. 1
Upon the granting of a use permit in accordance with the provisions of Chapter 14.80 of this title, the following uses shall be permitted in the R1-10 District:
- Sec. 14.06.030(B), Municipal Code Chapter 14.06 - R1-10 Single-Family District, p. 1
Large family day care; and
- Sec. 14.06.150 Signs (R1-10), Municipal Code Chapter 14.06 - R1-10 Single-Family District, p. 1
As provided in Chapter 14.68 of this code.