El Dorado County, CA Home Business: Zoning Restrictions (2026)

El Dorado County treats home occupations as a special use governed by Section 130.40.160 (Article 4, Chapter 130.40 of Title 130). The stated purpose is to provide opportunities for home-based businesses incidental to and compatible with surrounding residential and agricultural uses, to encourage employers to offer home workplace alternatives, promote economic self-sufficiency of County residents, and reduce commuting on U.S. Highway 50, while minimizing conflicts with adjacent property owners and maintaining the residential character of neighborhoods. The use is permitted by right when every standard is met, under the Home Occupation Use Matrix at Table 130.40.160.1. Allowed activities include work performed by telephone, mail, internet, or appointment; home offices; Cottage Food Operations (as defined in California Health and Safety Code Sections 109947 and 113758); small scale production and repair, handicrafts, parts assembly; or the work or craft of creative artists, music teachers, academic tutors, trainers, or similar instructors. Full or part-time non-resident employees on the direct payroll and supervision of the business owner are restricted by lot size, with one non-resident employee allowed on lots one acre to less than five acres (state code permits the operator to host on-site meetings with support personnel such as accountants and transcribers without counting them as employees). All business must be conducted within permitted structures on the lot, with no direct retail sales of products from the residence (no customers coming to the home to purchase). Section 130.40.160 expressly lists uses that are not incidental to or compatible with residential activities and may not be conducted as home occupations - including commercial kennels or catteries and medical and dental offices, clinics, and medical laboratories. Where a proposed home occupation exceeds the by-right standards, an Administrative Permit (and in some cases a Conditional Use Permit) is required, which the Planning Director may grant only on finding that the standard being exceeded will not change the residential character of the neighborhood based on attendance numbers, frequency or duration of the activity, and nature of the use. California state law preempts local zoning for licensed Family Day Care Homes (CA Health and Safety Code Section 1597.40 et seq.), which must be treated as a residential use of property.