Lake County, IL Home Business: Home Occupation Permits (2026)

Home-based businesses in unincorporated Lake County are governed by Section 151.113 (Accessory Uses) of the Unified Development Ordinance, specifically subsections (E) Customary Home Occupations, (F) Cottage Food Operations, (G) Bed and Breakfasts, and (H) Rural Home Occupations. Approval of a zoning certificate by Lake County Planning, Building and Development is required before commencing a customary home occupation. The UDO uses a performance-standards approach rather than a list of allowed uses: any occupation that meets all the standards is allowed unless specifically prohibited. Standard requirements include: the home occupation must be subordinate to and incidental to the principal residential use of the dwelling; conducted by residents of the dwelling (off-street parking must be provided for any employees and patrons); no outdoor storage, display, or activity; no signage other than those expressly permitted (a single sign with a maximum area of 1 square foot is allowed for bed and breakfasts); no traffic or noise generation beyond what is normal for the residential district; and no use of heavy equipment, hazardous materials, or commercial vehicles incompatible with residential character. Bed and breakfasts under 151.113(G) may not occupy more than 50% of the dwelling's floor area, are limited to five (5) guest rooms rented per night, and require approval by the Lake County Health Department and an inspection by Lake County Planning, Building and Development. Home day care for seven (7) or fewer individuals is treated as 'babysitting' and regulated as a customary home occupation under DCFS rules; care for eight or more children requires a DCFS license. Rural home occupations (more intensive operations) are permitted under 151.113(H) only on lots of 80,000 square feet (about 1.84 acres) or larger. Applications are filed in person at the Lake County Central Permit Facility, 500 W Winchester Road, Libertyville, IL 60048; the property owner must sign the application. Statewide, every business entity must register with the Illinois Department of Revenue using Form REG-1 (or online via MyTax Illinois) and obtain an Illinois Business Authorization. Sellers of tangible personal property collect 6.25% Retailers' Occupation Tax under 35 ILCS 120 plus any local sales tax components. LLCs and corporations must register with the Illinois Secretary of State under 805 ILCS. Regulated occupations (cosmetology, contracting, accounting, real estate, child care, food handling, etc.) require professional licensing through the Illinois Department of Financial and Professional Regulation regardless of where the business is conducted.