Home Occupation Resource Guide

A home-based business is activity conducted in a dwelling unit for financial gain by a member of the household residing therein that is secondary to the use of the dwelling unit for residential purposes. Most home-based businesses can be approved by Village Staff, but there are certain home-based businesses that require approval from Village Board.

To obtain Home-Based Business Approval, you must first submit a Home Occupation Application. Separate applications for day cares and special use home-based businesses are below. For additional information, please contact the Community Development Department at 847.923.4420.

Getting Approval for Home-Based Businesses

Application Fees

Submit the application along with payment of the required business license fee as indicated below:

  • Contractor Home-Based Business - $108/calendar year
  • Non-Contractor Home-Based Business - $95/calendar year
  • Chauffeur Home-Based Business - $95/calendar year*
  • Vending Home-Based Business - $95/calendar year*

* Additional fees may apply for chauffeur and vending home based businesses. Please refer to the Chauffeur License and Vending License.

Business License

After inspection of your property, you will receive the license via email.  Business licenses must be renewed every year.

If you are currently licensed by the Illinois Department of Professional Regulation, you are not required to obtain a business license from the village but must still receive approval to operate the business from your home.

Written Permission

If the property is a rental unit and/or part of a homeowner's association, written approval from the owner and/or association/property management company is required. Written approval should be on letterhead for the association/property management company.

Application Review and Inspections

Your Home-Based Business Application will be reviewed by the Community Development Department. If it meets all requirements, the village will contact you to schedule an inspection.

Periodic Inspections

Most home-based businesses are inspected every three years; however, home-based businesses involving the care or treatment of human beings or animals, handling or storage of food items, or involving other special circumstances are inspected every year. A representative from the Community Development Department will contact you to schedule an inspection.

Requirements and Regulations

The rules and regulations for home-based businesses can be found in Title 15, Section 154.65 of the Village Municipal Code.

Home based businesses must be secondary to the use of the dwelling for residential purposes and, except for home day cares, shall not occupy more than 160 square feet or 25% of the total floor area, whichever is less, of the principal structure and garage. Accessory structures, except garages, cannot be used for the business.


Signs, activities or displays that indicate the home is being used as a business are not permitted.

Structural alterations

Internal or external structural alterations or construction features to the dwelling or garage are not permitted. The installation of special equipment which changes the residential character of the dwelling or garage is not permitted. Any indoor storage, construction, alterations or electrical or mechanical equipment used cannot change the fire rating of the structure or the fire district in which the structure is located. A separate entrance for the sole use of the business cannot be added to the residence.

No outdoor storage

Home-based businesses and all related activities, including storage, must be conducted completely within the dwelling or garage.

Receipt or delivery of merchandise

 No deliveries by semi-tractor/trailer trucks are permitted.


The home occupation and any related activity shall not create any traffic hazards or nuisances in the public streets. You can only use vehicle parking that exists on the residential drive or assigned parking spaces for the dwelling unit. The frequency of trips to and from the dwelling shall be limited to avoid the creation of traffic patterns other than are customary in a residential neighborhood.

Limited wholesale, retail and service

No article can be sold or offered for sale except as may be produced or assembled on the premises. All other sales or provision of goods or services must be conducted off-premises unless by telephone.


No person shall be employed in the home-based business other than a member of the household residing in the dwelling unit.

Performance standards

There shall be no noise, odor, dust, vibration, smoke, glare, television, radio or electrical interference, fire hazard or any other hazard emanating from the dwelling or garage that creates a nuisance other than that usually experienced in an average dwelling or garage under normal circumstances. No home occupation shall involve the use or production of noxious, toxic, or harmful materials.

No manufacturing

Any production on the premises shall not involve the conduct of a manufacturing business typically only permitted in an M-1 or an M-P manufacturing district.

Gun sales prohibited

The sale of firearms and/or ammunition as a home-based business is hereby prohibited from single-family or multiple-family dwellings in all residential zoning districts.

Homeowner's associations

If you live in a development with a homeowner's association, you must obtain written permission from the homeowner's association (on association letterhead) to operate the business from your home.

Home Daycare

In addition to the above requirements, home day cares must be licensed (or in the process of being licensed) by the Illinois Department of Children and Family Services. All day cares are subject to the regulations under Illinois DCFS regulations. Per village requirements,up to 8 children can beat the home daycare at one time. A Home Daycare Application may be submitted for review.


All day cares will be inspected by the Village's Health, Fire and Building Divisions on at least an annual basis.

Special Use Permission

If you are interested in requesting Special Use permission, please contact the Community Development Department at 847.923.4430.

In addition to the regular home-based business regulations and restrictions, certain home-based businesses may require additional review in the form of a special use permit to insure the promotion of the public health, safety, comfort and welfare. The following home occupations require special use approval:

  • Any dwelling containing more than one home occupation.
  • Any home occupation that requires the direct handling of food or food items.
  • Any home occupation that requires the care or treatment of animals.
  • Any home occupation that requires the care or treatment of humans (except day care homes with 8 children or less per day)

Special Use Application Process

The Special Use process typically takes 6-8 weeks from the time you submit plans for the Zoning Board of Appeals and includes the following steps:

1. Pre-Application meeting

Meet with Village Staff to discuss your project and familiarize yourself with the Special Use Process.

2. Submittal of Application & Plans for the Zoning Board of Appeals

Submit the Special Use for Home Occupation Application and application fee along with 14 copies of a Plat of Survey and floor plan of your home illustrating the location of the space you will be using for the business.  The Village's deadline to submit is Monday by 12 p.m.

3. Notification Requirements

There are specific notification requirements which include:

a. Publication of Legal Notice in Newspaper (done by Village Staff)

b. Notification of all property owners within 150 feet of the property line

As the applicant, you are required to notify all property owners within 150 feet of your property lines. You will be given a letter from the Community Development Department after you have submitted your application which can be copied and sent to the property owners. The letters must be sent by certified mail return receipt requested. The names and addresses of the property owners may be obtained from either the Schaumburg Township Assessor's Office, Hanover Township Assessor's Office or the Palatine Township Assessor's Office, depending on your project's location.

Written notification must be done between 15 and 30 days before your scheduled Zoning Board of Appeals public hearing. All certified mail receipts, return receipts and a list of the property owners should be returned to the Village the Friday before your public hearing. Failure to notify the surrounding property owners outlined above will postpone your public hearing.

4.  Staff Review

Once your application has been submitted, Staff will review your plans and prepare a report summarizing the project and Staff’s recommendation for the request. You will receive a copy of this report prior to the Zoning Board of Appeals public hearing. Staff may provide a negative or positive recommendation for your project.

5. Zoning Board of Appeals

The Zoning Board of Appeals (ZBA) meets every Wednesday. Your request will be scheduled for ZBA approximately 3 weeks after the submission of your application.  At your scheduled public hearing, the Zoning Board of Appeals will conduct a review of your request. Anyone present from the public will be allowed to speak on your project. The Zoning Board of Appeals will make a recommendation to Village Board.

6. Village Board Action

Village Board is held the 2nd and 4th Tuesday of the month and has final approval of any special use request. If your request is approved, village staff will prepare an ordinance documenting approval of your project. The village board may include special conditions as part of approval/denial of your project.  Once Village Board has approved, you can obtain your business license.