Santa Monica's Home Business: The Rules That Matter

Every city handles home business a little differently. In Santa Monica, California, there are 5 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.

Signage Rules

Home occupations in Santa Monica may not have any signs other than the address and name of any resident per SMMC §9.31.160. No outdoor advertising identifying the home occupation is permitted.

Key details: Signs: Address and resident name only. Advertising: No outdoor advertising. Code: SMMC §9.31.160. Enforcement: Code Enforcement.

Business signage at a home occupation is a direct violation of SMMC §9.31.160. Code enforcement may issue citations and order sign removal.

This is not one of those rules that cities tend to ignore. Santa Monica actively enforces its signage rules requirements.

Cottage Food Operations

Cottage food operations are permitted in Santa Monica under CA HSC §113758 as an exception to home occupation rules. CFOs may have non-resident employees for cottage food per SMMC §9.31.160. State registration or permit required.

Key details: Allowed: Exception to home occupation rules. Employees: CFO exception applies. State Law: CA HSC §113758. Code: SMMC §9.31.160.

Selling non-permitted foods: cease and desist. Exceeding revenue caps: commercial kitchen requirement. Labeling violations: warnings then fines.

Zoning Restrictions

Home occupation permits in Santa Monica are required under SMMC §9.31.160. The permit is valid only for the person issued and void upon moving. Prohibited uses include dance schools, exercise studios (except 1-on-1 with max 6 clients/day).

Key details: Permit: Home occupation permit required. Transferable: No, void upon moving. Prohibited: Dance schools, group exercise. Exception: 1-on-1 training, max 6 clients/day.

Operating without zoning conformance review or a business license is a violation. Non-compliant home occupations may be ordered to cease. Fines apply under SMMC Chapter 1.09.

Customer Traffic Restrictions

Home occupations in Santa Monica must not generate traffic beyond what is normal for the residential district per SMMC §9.31.160. No exterior signs, outdoor storage, or advertising identifying the business is permitted.

Key details: Traffic: Must not exceed residential norms. Signs: Only address and resident name. Outdoor Advertising: Not permitted. Code: SMMC §9.31.160.

Exceeding 6 client visits or generating excessive traffic may result in citation, permit suspension, or revocation. Code enforcement monitors compliance.

Home Daycare

Family daycare homes in Santa Monica are permitted under California state law. Small family daycare (up to 8 children) requires a state license. Large family daycare (9-14) may require local review. CA Community Care Licensing inspection required.

Key details: Small FDC: Up to 8 children, state license. Large FDC: 9-14 children, local review. Inspection: CCLD pre-licensing required. State License: CA Community Care Licensing.

Operating without a license: closure and fines $500 to $5,000. Safety violations: license suspension. Exceeding capacity: immediate correction required.

The Bottom Line

Santa Monica'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 Santa Monica is broadly strict or permissive.

Keep in mind that Santa Monica 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.