Customary home occupations in unincorporated Lake County require a zoning certificate from Lake County Planning, Building and Development under Subsection 151.113(E) of the Unified Development Ordinance. The home occupation must be subordinate to the residential use, conducted by residents of the dwelling, and meet performance standards on employees, signage, parking, traffic, and outdoor activity. Bed and breakfasts may not exceed 50% of the floor area, are capped at five guest rooms, and require Lake County Health Department approval. Rural home occupations (greater intensity) are limited to lots of 80,000 sq ft or larger. Statewide, every business entity must register with the Illinois Secretary of State and the Illinois Department of Revenue (MyTax Illinois / REG-1) and collect 6.25% Retailers' Occupation Tax on taxable goods (35 ILCS 120).
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.
Operating a home occupation in unincorporated Lake County without a zoning certificate, or in violation of the 151.113 performance standards, is enforceable under Chapter 151 §§ 151.250-151.253 (Violations, Penalties and Enforcement). Lake County Code Enforcement issues notices and pursues remedies through the Lake County Administrative Adjudication Ordinance (§§ 94.50-94.66), including cease-and-desist orders, daily monetary fines (each day a separate offense under § 151.253), revocation of the zoning certificate, and injunctive relief in circuit court. Operating a bed and breakfast without Lake County Health Department approval is a separate health-code violation. Failure to register a business with the Illinois Department of Revenue or to remit Retailers' Occupation Tax under 35 ILCS 120 is enforceable by IDOR with assessments, interest, and penalties up to 30% under the Uniform Penalty and Interest Act (35 ILCS 735).
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