Can I run a business from home in Newport Beach, California?
Home occupations are allowed in Newport Beach's residential districts without a planning permit, but only household members may work there, clients come by appointment only, and no signs or outdoor storage can be visible from the property line. You'll need a city business license. Our zoning text is the 2010 version, so confirm the current rules.
| Allowed in residential districts | Yes, permitted by right in R-A, R-1, R-BI/R-2 and RM/RMD (2010 use table) [1] |
| Employees | Permanent residents of the home only (occasional independent contractors OK) [4] |
| Where | Inside the main dwelling only; not in setbacks, yards or accessory buildings [3] |
| Signs | None visible at any property line [5] |
| Visitors | By prior appointment only [6] |
| Prohibited | Vehicle repair or storage; hazardous materials storage [7] |
| License | City business license required [8] |
Is it allowed?
In the 2010 Newport Beach Zoning Code (Title 20), the residential use table (Table 2-1) marks Home Occupations "P" (permitted by right) in all four residential district columns: R-A, R-1, R-BI/R-2 and RM/RMD [1]. That table row is what the quote [1] shows. A home occupation must be run in a home occupied by a single household and by a member of that household [2]. It must be conducted inside the main dwelling, not in a setback area, yard or accessory structure, and must be clearly incidental to living there [3]. You can't alter the home's internal or external structure for the business.
Employees, signs and visitors
Employees are limited to permanent residents of the home, though independent contractors may make occasional visits [4]. Evidence of the business can't be visible off the lot: no signs, merchandise displays or other identification visible at any property line [5], and no equipment or materials stored outside. Home occupations can't be open to visitors without prior appointments [6] and can't generate traffic significantly above normal for the neighborhood. Parking must meet the off-street parking chapter.
Prohibited activities
Vehicle repair or storage for the business, and storage of hazardous materials, are not allowed [7]. The business can't create noise, vibration, glare, fumes, odors or electrical interference noticeable off the lot, or need utility changes.
Licenses
You need the applicable city business license under Municipal Code Title 5 [8]. Commercial filming at home needs a separate film permit.
Notes on our source
These rules come from the zoning code as adopted October 26, 2010 (Section 20.48.110). The current code is online only through eCode360, which we couldn't download, and the section may have been amended since. These are the inland Title 20 rules; properties in the coastal zone fall under Title 21, which we couldn't review for this topic. State law separately protects licensed family child care homes and cottage food operations, and may override some of these limits for them.
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Next steps
- Check current Municipal Code Section 20.48.110 (Home Occupations) on the city's eCode360 site to confirm the 2010 rules still apply.
- Apply for a city business license with the Revenue Division (100 Civic Center Drive).
- Set up the business inside the house only, with no signs or outdoor storage, and see clients by appointment.
- For cottage food or family child care, register or license with the county or state as required.
Common questions
- Do I need a home occupation permit in Newport Beach, California?
- No planning permit is needed: home occupations are permitted by right in Newport Beach's residential districts under the 2010 zoning code. You do need a city business license. The code may have been amended since 2010, so confirm the current rules.
- Can I have employees at a home business in Newport Beach, California?
- Only permanent residents of the home may work there, though independent contractors may make occasional visits. The business must be run inside the main dwelling, not in a yard, setback or accessory building.
- Can clients visit a home business in Newport Beach, California?
- Yes, but only by prior appointment, and the business can't generate traffic significantly above normal for the neighborhood. No signs, displays or outdoor storage may be visible at any property line.
- Do I need a business license for a home based business in Newport Beach, California?
- Yes. You need the applicable city business license under Municipal Code Title 5, available through the Revenue Division. Commercial filming at home needs a separate film permit.
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
- Table 2-1 Allowed Uses, Residential Districts (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 33
Home Occupations P P P P 20.48.110
- Sec. 20.48.110(A) Occupancy (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 261
A home occupation shall only be operated in a residence occupied by a single-housekeeping unit and by a member(s) of that single housekeeping unit.
- Sec. 20.48.110(B) Location (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 261
A home occupation use shall be conducted in the principal dwelling unit; shall be excluded from a setback area, yard or accessory structure; and shall be clearly incidental and subordinate to the principal residential use.
- Sec. 20.48.110(E) Employees (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 261
Employees of a home occupation shall be limited to permanent residents of the dwelling unit. This restriction shall not apply to independent contractors who make occasional or periodic visits to the site of the home occupation.
- Sec. 20.48.110(D) Signs (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 261
Advertising sign(s), displays of merchandise or stock-in-trade, or other identification of the business activity shall not be displayed on the premises in a manner that they are visible at any property line of the subject property.
- Sec. 20.48.110(L) Visitors (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 262
Home occupations shall not be open to visitors without prior appointments.
- Sec. 20.48.110(K) Prohibited activities (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 262
Vehicle repair or storage associated with the home occupation shall not be allowed. Storage of hazardous materials shall not be allowed.
- Sec. 20.48.110(N) Business licenses (2010), Zoning Code Title 20 (complete, as adopted October 26, 2010), p. 262
Applicable business licenses shall be obtained as required by Municipal Code Title 5 (Business Licenses and Regulations).