Chicago, IL Home Business: Zoning & Home Occupation Permits (2026)

Running a business from a Chicago home requires a regulated business license under Municipal Code § 4-6-270, and the use must stay accessory, incidental and secondary to the home's residential use. The license application must disclose the occupation type, the dwelling's total floor area, and the square footage the business will occupy. The home occupation cannot exceed 300 square feet or 25% of the dwelling's total floor area, whichever is larger, cannot add a separate exterior entrance, and cannot display exterior signage. No more than one non-resident employee may work inside the dwelling, and patron/client visits are capped at two at a time and ten per 24-hour period. Barred activities include vehicle repair, kennels, restaurants, catering, medical clinics, firearms sales, and welding/machine shops. The Zoning Ordinance's home-occupation standards (§ 17-9-0202) must also be met.