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Laguna Beach · Building on your lot

Running a business from home in Laguna Beach

A Home Occupation Permit and a Business License are required, and the business may use no more than half of the home's living area.

Key points

  • Home businesses: A Home Occupation Permit and a Business License are required, and the business may use no more than half of the home's living area.

Each rule below links to the section of the Laguna Beach Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Laguna Beach's code says

Laguna Beach code What Laguna Beach's code adds
Space used
  • No more than half of the home's living area can be used for the business.
    § 25.96.040 · code text
    A maximum of one-half of the habitable area of the dwelling may be devoted to business activities.
Permit
  • A Home Occupation Permit is required.
    § 25.96.040 · code text
    An applicant seeking a Home Occupation Permit shall file an application with the Community Development Department.
  • A Business License is required at all times.
    Applies: Whenever a home is used for a home business.
    § 25.96.040 · code text
    A Business License must be maintained at all times when a residential unit is being used for home occupation purposes.
  • A Building Permit is required.
    Applies: For any construction, moving, alteration, conversion, improvement, repair or demolition of a structure.
    § 25.96.040 · code text
    A Building Permit is required for any construction, moving, alteration, conversion, improvement, repair, or demolition of a structure.
  • A Coastal Development Permit is required.
    Applies: Home business projects in the coastal zone that count as development under the Zoning Code.
    § 25.96.040 · code text
    Any home occupation project within the coastal zone that qualifies as development under Section 25.07.006 of the Zoning Code shall require a Coastal Development Permit.
Businesses not allowed
  • Adult business activities
    § 25.96.040 · code text
    Adult business activities;
  • Animal hospitals, clinics, and kennels, and commercial uses involving breeding, grooming, or training animals on the premises
    § 25.96.040 · code text
    Animal hospitals, clinics, and kennels, and any commercial uses that involve the breeding, grooming, or training of dogs, cats, or other animals on the premises;
  • Assembly of an industrial nature
    § 25.96.040 · code text
    Assembly of an industrial nature;
  • Carpentry and cabinet making
    Applies: does not prohibit a normal wood-working hobby operation
    § 25.96.040 · code text
    Carpentry and cabinet making (does not prohibit a normal wood-working hobby operation);
  • Construction and landscaping businesses with on-site storage of goods, equipment, and materials
    Applies: goods, equipment, and materials are to be utilized in the operation of the business
    § 25.96.040 · code text
    Construction and landscaping businesses that provide on-site storage of goods, equipment, and materials to be utilized in the operation of the business;
  • Gun and weapon sales
    § 25.96.040 · code text
    Gun and weapon sales;
  • Hazardous uses
    Applies: uses involving storage of large quantities of hazardous materials that readily support combustion or pose a health hazard
    § 25.96.040 · code text
    Hazardous uses are generally those uses that involve storage of large quantities of hazardous materials that readily support combustion or pose a health hazard;
  • Medical clinics, medical offices, laboratories, and pharmacies
    Applies: Except uses the section allows, such as physical therapists, licensed therapist offices, and psychology and psychiatric offices
    § 25.96.040 · code text
    Medical clinics, medical offices, laboratories, and pharmacies, except those permitted above;
  • Manufacturing
    § 25.96.040 · code text
    Manufacturing;
  • Marijuana growing, processing, or retail sales
    § 25.96.040 · code text
    Marijuana growing, processing, or retail sales;
  • Motor vehicle repair, servicing, painting, storage, or washing
    § 25.96.040 · code text
    Motor vehicle repair, servicing, painting, storage, or washing;
  • Personal self-storage (mini-storage)
    § 25.96.040 · code text
    Personal self-storage (mini-storage);
  • Direct retail sales
    Applies: Stock on hand with customers coming to the residence; art and craft work may be sold at the premises by appointment, and cottage food sales may be fulfilled by appointment
    § 25.96.040 · code text
    Retail sales, direct (i.e., stock on hand and customers coming to the residence), except as permitted above;
  • Schools
    Applies: does not include tutoring/counseling or art, music, and similar fine-art related lessons
    § 25.96.040 · code text
    Schools (does not including tutoring/counseling or art, music, and similar fine-art related lessons);
  • Storage
    Applies: except as an accessory use to an otherwise permitted business activity; storage may not displace required parking
    § 25.96.040 · code text
    Storage, including personal self-storage (mini-storage), except as an accessory use to an otherwise permitted business activity. Storage may not displace required parking;
  • Tattoo shops
    § 25.96.040 · code text
    Tattoo shops;
  • Welding and machining
    § 25.96.040 · code text
    Welding and machining;

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Can I run a business from my home in Laguna Beach?

A Home Occupation Permit and a Business License are required, and the business may use no more than half of the home's living area.

General information, not legal advice.

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