Collierville, TN Home Business: Zoning & Home Occupation Permits (2026)

Collierville Code of Ordinances § 151.025(D)(8) regulates home occupations, also called home-based businesses, in two types. Footnote [1] of the performance table says a Type 1 Home Occupation is allowed by right, with conditions, in all residential zoning districts. Footnote [2] says a Type 2 Home Occupation is not allowed by right and requires approval by the Board of Mayor and Aldermen through the conditional use permit process under § 151.310. The limits apply only to activities at the home, not to business activity off-site, and agricultural uses are regulated as principal uses instead.

Both types share the floor-area rule: the dwelling use must stay clearly incidental and subordinate to residential use, and not more than 25% of the dwelling unit's floor area is used for the business. Neither type can have outside employees working at the home for business purposes. Hazardous, flammable or explosive materials cannot be stored or generated in quantities that could be a neighborhood danger, as determined by the Town Fire Marshal. Operators must hold a valid business license with all Town of Collierville taxes current or the use becomes null and void, and the Development Department can inspect the premises. A home occupation that ceases for 6 continuous months is null and void, and each approval is specific to one residential address.

The table then separates the two tiers. Type 1 allows a maximum of two customers per week by appointment, two deliveries per week above normal household parcel delivery, no accessory-structure use, no exterior storage, and no change to the outside appearance of the dwelling. Type 2 allows a maximum of ten customers per week, ten deliveries per week, use of an accessory structure, exterior storage in a rear yard completely screened from view, and machinery noise or vibration only for periods of short duration, no longer than ten minutes per hour and a cumulative maximum not to exceed one hour per day. Sales of merchandise directly to customers at the home are prohibited in both types, though telephone and internet sales are permitted.