Orem's Home Business: The Rules That Matter

Every city handles home business a little differently. In Orem, Utah, there are 3 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.

Home Daycare

Orem allows small in-home child and adult day care under Orem City Code Section 22-6-9(F), but caps Home Adult Day Care at six functionally impaired adults and bars any home day care service in a dwelling that also has an accessory apartment. Outdoor play areas need a 6-foot self-latching fence, and outdoor activity is barred between 9 p.m. and 8 a.m.

Key details: Home Adult Day Care cap: 6 functionally impaired adults. License needed: Utah DHS license, plus City business license. Outdoor play hours: Barred 9 p.m. to 8 a.m.. Play area fencing: 6-ft self-latching fence required. Disqualifying condition: No day care if home has accessory apartment.

Operating a home day care without the required State of Utah license or, where applicable, an Orem business license is a code violation subject to citation and possible closure of the business. Exceeding the six-adult cap for Home Adult Day Care, running the operation in a home with an accessory apartment, posting visible signage, or allowing outdoor play outside the permitted hours are each independently enforceable violations that Development Services and the City's licensing office can act on.

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 & Home Occupation Permits

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.