Orem's Home Business: The Rules That Matter

Every city handles home business a little differently. In Orem, Utah, there are 4 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Customer Traffic Restrictions

Home occupations in Orem residential zones must not generate customer traffic or on-site visits that alter the residential character. No non-resident employees typically permitted. High-traffic businesses require a Conditional Use Permit or commercial zone.

Key details: Customer Visits: Limited in residential zones. Non-Resident Employees: Typically not permitted. CUP Option: Available for some uses. Contact: (801) 229-7058.

Excessive traffic complaints: permit review. Revocation for repeat violations. Cease-and-desist order.

Home Occupation Permits

Orem City Code Section 22-14-15 requires every home-based business to obtain both a home occupation permit from the Finance Department and a business license before operating. The home occupation permit carries an annual fee set by City Council resolution, and the Finance Director may issue the permit only if every standard in Section 22-14-15 is met.

Key details: Code Section: Orem City Code Sec. 22-14-15. Permit Required: Home occupation permit + business license. Issuing Office: Finance Department (Finance Director). Permit Fee: Annual fee set by City Council resolution. State Authority: Utah Code Sec. 10-1-203.

Conducting a home occupation without first obtaining a home occupation permit and business license is unlawful under Section 22-14-15; the Code states it is 'unlawful to conduct a business or occupation in a residential dwelling unless a home occupation permit has been issued by the City.' Operating in violation of any permit standard is grounds for revocation of the home occupation permit and enforcement under the City's zoning and business-license authority.

Signage Rules

Orem City Code Section 22-14-15 prohibits any external evidence of a home occupation. There may be no exterior displays, no display of goods, and no advertising signs visible from outside the dwelling unit, and no business activity or storage of materials may occur outside the dwelling.

Key details: Code Section: Orem City Code Sec. 22-14-15. On-Site Signs: Prohibited - no signs visible from outside. Exterior Displays: Prohibited. Outdoor Activity/Storage: Prohibited. General Sign Code: Chapter 14 (Signs), e.g., Sec. 14-3-2.

Posting any advertising sign, exterior display, or other external evidence of the home occupation violates a standard of Section 22-14-15 and is grounds for denial or revocation of the home occupation permit, enforceable under the City's zoning and code-enforcement authority.

This is one of the stricter rules in Orem's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Zoning Restrictions

Orem City Code Section 22-14-15 allows limited business activity in a residential dwelling in any zone only where it is clearly incidental and secondary to the residential use, occupies no more than 1,000 square feet or 40 percent of floor area (whichever is less), and is carried on solely by resident family members (with a narrow one-non-resident-employee exception). Outdoor storage, noise, odor, and heavy-truck servicing are prohibited.

Key details: Code Section: Orem City Code Sec. 22-14-15. Floor Area Cap: 1,000 sq ft or 40% of dwelling, whichever is less. Operators: Resident immediate family only. Non-Resident Employees: Max 1 (with off-street stall, no customers). Traffic Limit: Max 2 round trips/hour; none 6pm-7:30am.

Operating outside any of the Section 22-14-15 standards is a violation of Chapter 22 zoning. For dwellings with accessory apartments, the Code states that the existence of customers, deliveries, or an outside-resident employee after permit issuance 'shall be grounds for revocation of the permit.' Enforcement is through the City's zoning and code-enforcement authority and may include permit revocation and orders to cease the business.

The Bottom Line

Orem's home business rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Orem is broadly strict or permissive.

All of the above reflects Orem's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.