San Marcos, CA Home Business: Home Occupation Permits (2026)

Any San Marcos resident wishing to operate a business from their home must obtain a home occupation permit from the city Planning Division. The permit application requires details about the nature of the business, the area of the home to be used, the number of residents involved, expected deliveries, and hours of operation. The application is reviewed administratively and does not typically require a public hearing for standard home occupations. Permit fees are set by the city's fee schedule. The permit runs with the occupant, not the property — it does not transfer if the resident moves or if the property is sold. Conditions of the permit include limiting business use to 25% of habitable floor area, prohibiting exterior evidence of the business, restricting customer visits, allowing no on-site employees other than residents, and maintaining compliance with all applicable noise, parking, and nuisance standards. The permit may be revoked if conditions are violated. Certain business types that exceed standard home occupation parameters may require a minor conditional use permit with additional review and potentially a public hearing. A separate city business license is also required for all home-based businesses. Contact the Planning Division at (760) 744-1050 for applications and guidance.