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Greenwood, IN Home Business: Zoning & Home Occupation Permits (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Governing section
UDO Sec. 10-03-12.A
Floor area cap
25% of dwelling's gross floor area
Exterior changes
Not permitted for the business
Outside storage/display
Prohibited entirely
Banned uses example
Auto repair, salons, medical offices, restaurants
First violation fine
$50 civil zoning citation

Summary

The City of Greenwood, Indiana limits home occupations to 25 percent of a dwelling's gross floor area, bars outside storage, signage or exterior alteration, and Sec. 10-03-12.A.12 excludes auto repair, beauty and barber shops, medical and dental offices, restaurants, kennels and a dozen other uses from qualifying as home businesses.

A. Standards. ... Home occupations must be conducted in accordance with the following standards: ... ... 2. A maximum of twenty-five percent (25%) of the gross floor area of the dwelling shall be utilized for a home occupation. ... ... 4. There shall be no outside storage of any kind related to the home occupation use and only commodities made on the premises may be sold on the premises. No display of any products shall be visible from the outside of the dwelling. ... ... 12. The following uses by the nature of the investment or operation have a pronounced tendency once started to rapidly increase beyond the limits permitted for home occupations, and thereby impair the use and value of a residentially zoned area for residence purposes. Therefore, the uses specified below shall not be permitted as home occupations: a. Auto/vehicle repairs, minor or major, Barbershop, Beauty shop, Dance studio, Dental office or clinic, Medical office or clinic, ... Veterinary clinic, kennel, or stables, Restaurants, eating or drinking establishments, Any other use not meeting the conditions of this section.

Full Breakdown

Sec. 10-03-12.A of Greenwood's Unified Development Ordinance sets the baseline standards every home occupation must meet. Floor area is capped: a maximum of twenty-five percent of the gross floor area of the dwelling shall be utilized for a home occupation. The business cannot change how the house looks from the street, since the external appearance of the structure shall not be altered to accommodate the home occupation use, and it cannot spill outside: there shall be no outside storage of any kind related to the home occupation use, and only commodities made on the premises may be sold on the premises, with no display of any products visible from outside the dwelling.

Equipment that creates offensive noises, vibration, smoke, dust, odor, heat, glare, x-rays, radiation, or electrical disturbances is barred outright. The section's longest provision, A.12, lists uses the City has decided grow too large or intrusive for a residential district and bans them from qualifying as home occupations at all, naming auto and vehicle repair, barbershops, beauty shops, dance studios, dental and medical offices, vehicle painting, photography and photo-developing studios, private schools with organized classes, upholstering, television and radio repair, small-engine and appliance repair, freight or trucking operations, welding and machine shops, antique or gift shops, equipment rental, veterinary clinics, kennels and stables, and restaurants or other eating and drinking establishments.

Operating any of these, or any other use inconsistent with the section, out of a Greenwood home does not qualify as a lawful home occupation and is pursued as a zoning violation.

Violations & Fines

Exceeding the 25 percent floor-area cap, altering a home's exterior for business use, storing goods outside, or running a banned use like an auto shop, salon, medical office, restaurant or kennel from a residence violates Sec. 10-03-12.A and is a civil zoning violation under Sec. 10-04-09, starting with a warning ticket and a $50 first citation, rising to $75 and $100 for repeat offenses.

Frequently Asked Questions

Can I run a hair salon out of my Greenwood home?
No. Sec. 10-03-12.A.12 specifically excludes barbershops and beauty shops from qualifying as home occupations, along with dental and medical offices, restaurants, auto repair, kennels and several other listed uses the City considers too intensive for a residential home occupation.
How much of my house can I use for a home business?
Up to 25 percent of the dwelling's gross floor area, per Sec. 10-03-12.A.2. The home's exterior cannot be altered to accommodate the business, and no products or storage related to it may be visible or kept outside the dwelling.
What if my home business creates noise or odors?
It is not allowed. Sec. 10-03-12.A.6 bars any equipment, process or material that creates offensive noise, vibration, smoke, dust, odor, heat, glare, x-rays, radiation or electrical disturbances, regardless of the type of home occupation being run at the property.

Sources & Official References

Other rules in Greenwood

All Greenwood rules

How Greenwood compares: Easiest Cities to Run a Home Business·Compare Greenwood to another location·View the Indiana home business overview

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