Home Business in Chico, CA (2026)
5 verified home business rules for Chico, California, sourced directly from the municipal code and official government pages.
Verified from official government sources
Zoning Restrictions
Chico Municipal Code Chapter 19.20 allows home occupations in any residential zoning district with an approved Home Occupation Permit issued by the Community Development Director. The use must be clearly incidental and secondary to the dwelling's residential character, conducted entirely within the principal residence of the applicant, and may not exceed 50 percent of net floor area or 400 square feet, whichever is less. CMC 19.20.060 caps employment at residents plus one additional employee.
Home Occupation Permit Required in All Residential Zones
Some RestrictionsSignage Rules
CMC 19.20.060 limits home occupation signage to one non-illuminated name plate not exceeding 1 square foot in area, with placement approved by the Community Development Director. No display of merchandise, stock-in-trade, or other identification of the home occupation is allowed on the premises. Citywide sign rules in CMC Ch. 19.74 also apply.
One Non-Illuminated Name Plate, Maximum 1 Square Foot
Heavy RestrictionsCustomer Traffic Restrictions
Per CMC 19.20.060, a Chico home occupation may not generate more than 10 additional pedestrian or vehicular trips per day beyond what is customary for the residential zoning district. Customers and clients are prohibited on the premises between 10:00 p.m. and 8:00 a.m. All home-occupation parking must occur on-site or in legal on-street spaces without obstructing neighbor access.
Maximum 10 Extra Trips/Day; No Customers 10 PM–8 AM
Some RestrictionsCottage Food Operations
California's Homemade Food Act (Health & Safety Code §113758 et seq.) governs Cottage Food Operations (CFOs). Class A CFOs (direct sales) self-certify with Butte County Environmental Health; Class B CFOs (indirect sales through retailers) require a county-issued permit and annual kitchen inspection. State law sets the gross-sales caps ($75,000 Class A, $150,000 Class B). Chico does not impose a separate ban — CFOs that meet state law are an allowed home occupation use under CMC 19.20.060.
California Homemade Food Act — Register with Butte County Environmental Health
Some RestrictionsHome Daycare
California Health & Safety Code §1597.40 preempts local zoning of family daycare homes. Small family daycare homes (up to 8 children) are treated as residential use in every zone allowing single-family homes. Large family daycare homes (up to 14 children) cannot be prohibited on lots zoned for single-family dwellings. Chico cannot require a Home Occupation Permit, conditional use permit, or business license that would directly or indirectly restrict a licensed family daycare home. Licensing is handled by California Department of Social Services Community Care Licensing (CCLD).
Family Daycare Homes Are Residential Use — State Preempts Local Bans
Few RestrictionsLooking for Butte County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Chico city rules.
Home Business in Butte County →