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Morro Bay · Building on your lot

Running a business from home in Morro Bay

City rule: a home business may use 1 independent contractor besides residents; retail sales and personal services are not allowed.

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Key points

  • Home businesses: City rule: a home business may use 1 independent contractor besides residents; retail sales and personal services are not allowed.

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

What Morro Bay's code says

Morro Bay code What Morro Bay's code adds
Employees
  • No more than 1 independent contractor besides the people who live in the home.
    Applies: Home businesses in any residential unit; cottage food operations have their own rule.
    § 17.30.130 · code text
    A maximum of one independent contractor other than residents of the dwelling shall be permitted to work at the location of a home occupation except as otherwise allowed for cottage food operations.
  • 1 full-time equivalent employee, plus the operator and household members living in the home.
    Applies: Cottage food operations.
    § 17.30.130 · code text
    Only the cottage food operator and members of his or her household living in the unit, as well as one full-time equivalent cottage food employee, may participate in a cottage food operation.
Permit
  • An annual business tax must be paid.
    Applies: Home businesses not otherwise listed or taxed in the business tax rules.
    § 5.08.130 · code text
    Each home occupation constituting a business and not otherwise specifically enumerated or taxed in this chapter shall pay an annual business tax in accordance with the schedule enumerated in Section 5.08.020.
Businesses not allowed
  • vehicle sales and services; animal care, sales, and services; eating and drinking establishments; hotels and motels; hospitals and clinics; personal services; retail sales
    § 17.30.130 · code text
    The following specific businesses are not permitted as home occupations.

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Can I run a business from my home in Morro Bay?

City rule: a home business may use 1 independent contractor besides residents; retail sales and personal services are not allowed.

General information, not legal advice.

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Morro Bay Municipal Code — full text