Gaithersburg Home Business: Home Occupation Permits Rules (2026)

Montgomery County DPS administers the home occupation registration and permitting process that applies to Gaithersburg residents. Understanding which tier your business falls into and what registration steps are required is essential to operating legally and avoiding code enforcement issues. For a No-Impact Home Occupation, no registration or permit is required from DPS, the city, or any county agency. The resident operates the business under the self-certified understanding that they are meeting all No-Impact restrictions: maximum 5 client visits per week, no non-resident employees, no exterior signage or visible evidence of the business, no commercial vehicle, no inventory deliveries by commercial trucks, no equipment generating noise or vibrations detectable outside the dwelling, and the business occupying no more than 33 percent of the gross floor area. The advantage of No-Impact status is administrative simplicity -- no forms, no fees, no inspections. The risk is that if the business grows beyond No-Impact limits without upgrading to Low-Impact registration, the operator could face code enforcement action triggered by a neighbor complaint. For a Low-Impact Home Occupation, the resident must submit a registration application to DPS. The application can be completed online through the county's ePlans portal or in person at the DPS office in Wheaton. The form requires the applicant's name and address, a description of the business activity, the anticipated number of weekly client visits (up to 20), information about any non-resident employees (maximum 1), details about any commercial vehicle to be parked at the residence (maximum 1, under 10,000 pounds GVW), and a floor plan showing the portion of the dwelling used for the business (maximum 33 percent of gross floor area). The registration fee is nominal, typically under $50. DPS reviews the application administratively, and no public hearing or neighbor notification is required. Registration is typically processed within 10 to 15 business days. Once registered, the home occupation may be subject to periodic compliance checks or inspections if complaints are received. For a Major Home Occupation, the process is significantly more involved. The resident must file a Conditional Use application with OZAH. The application package includes a detailed description of the proposed business activity, a site plan showing the property layout, traffic and parking analysis, information about up to 2 non-resident employees, and proposed hours of operation. OZAH schedules a public hearing before the county Hearing Examiner, and notice of the hearing is sent to neighboring property owners who have the right to attend and testify. The Hearing Examiner evaluates whether the proposed home occupation is compatible with the residential neighborhood and sets specific conditions on operations. The Conditional Use process typically takes 3 to 6 months from application to decision. Approval conditions are binding, and violations of conditions can result in revocation of the Conditional Use. Regardless of tier, all home businesses operating in Gaithersburg must separately register with the Maryland SDAT through the Maryland Business Express portal. SDAT registration establishes the business entity for tax purposes and is required even for sole proprietors. If the business operates under a name other than the owner's legal name, a trade name certificate must be filed with SDAT. Montgomery County does not impose a separate county business license fee for home occupations beyond the DPS registration. However, some professional activities may require separate state licensing (for example, counselors, accountants, real estate agents, and contractors have their own state licensing boards).