San Francisco's Home Business: The Rules That Matter

Every city handles home business a little differently. In San Francisco, California, there are 2 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 Occupation Permits

San Francisco Planning Code Section 204.1 allows home occupations as an accessory use in residential zones with no permit if criteria are met. The business must be secondary to the dwelling, use no more than 1/3 of the unit, have no employees outside residents, and no customer visits or signage.

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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [San Francisco code enforcement](https://codelibrary.amlegal.com/codes/san_francisco/latest/sf_planning/0-0-0-4094) directly for current fines, enforcement procedures, and hearing options.

Cottage Food Operations

California Homemade Food Act (AB 1616, AB 626) and the 2018 Microenterprise Home Kitchen Operations law (MEHKO) allow limited home-based food businesses in San Francisco. SF has opted-in to MEHKO as of 2024, requiring a DPH permit for home kitchens selling meals.

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Specific penalty amounts for this ordinance are not published in a publicly accessible fine schedule. Contact [San Francisco code enforcement](https://www.cdph.ca.gov/Programs/CEH/DFDCS/Pages/FDBPrograms/FoodSafetyProgram/CottageFoodOperations.aspx) directly for current fines, enforcement procedures, and hearing options.

The Bottom Line

San Francisco'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 San Francisco is broadly strict or permissive.

Keep in mind that San Francisco can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.