Home Business in Merced, CA (2026)
6 verified home business rules for Merced, California, sourced directly from the municipal code and official government pages.
Verified from official government sources
Zoning Restrictions
Merced allows home occupations in residential zones under Chapter 20.48. 'Minor' home occupations (office, phone, computer, mail only) are permitted by-right; 'major' home occupations need a Site Plan Review Permit, and a cottage food operation needs a Minor Use Permit. Work is capped at 25% of floor area or 400 sq ft.
Merced Home Business Zoning
Some RestrictionsSignage Rules
Merced strictly limits home-business signs. MMC 20.48.040.A.4 permits one single, non-illuminated, wall-mounted sign of no more than one square foot. Advertising the business location by newspaper, radio, or TV is prohibited, though contact information without the address is allowed.
Merced Home Business Signage
Heavy RestrictionsCustomer Traffic Restrictions
Home occupations in the City of Merced must not generate traffic, parking demand or deliveries beyond what is normal for a residence; significant customer visits can disqualify the use.
Home Business: Customer Traffic
Some RestrictionsCottage Food Operations
Merced classifies a cottage food operation (California Homemade Food Act, AB 1616) as a 'major' home occupation requiring a Minor Use Permit (MMC 20.48.030.B.1). It also requires a county Department of Environmental Health cottage food permit, but state law exempts these operations from local rules that conflict, including bans on customers and on-site sales.
Merced Cottage Food Operations
Some RestrictionsHome Daycare
Merced permits small (1-8 children) and large (9-14 children) family day care homes by-right in residential zones (MMC 20.08.020), consistent with California law (HSC 1597.40-1597.46). State preemption treats them as a residential use and bars the City from imposing zoning bans or business-license fees.
Merced Family Daycare Homes
Few RestrictionsHome Occupation Permits
Merced requires a home occupation certificate and city business license for a 'minor' home occupation (permitted by-right). 'Major' home occupations require a Site Plan Review Permit with a public hearing; cottage food operations require a Minor Use Permit. Permits can be suspended if the use becomes a nuisance.
Merced Home Occupation Permits
Some RestrictionsLooking for Merced County county-wide rules?
County ordinances apply to unincorporated areas and may supplement Merced city rules.
Home Business in Merced County →