Lakewood, WA Home Business: Zoning & Home Occupation Permits (2026)
Key Facts
- Governing section
- LMC 18A.40.110(B)(7)
- Non-resident staff limit
- 1 employee not living on-site
- Activity location
- Must be conducted entirely indoors
- License required
- City business license, subsection (h)
- Prohibited uses
- Auto/boat repair, heavy equipment, taxi/limo service
Summary
Lakewood, Washington permits home occupations in residential zones under LMC 18A.40.110(B)(7), but the business must stay subordinate to the home's residential use, run entirely indoors, and be staffed only by a resident family member plus at most one outside employee. A City business license is required.
7. Home occupations are permitted subject to the following: a. The home occupation shall be subordinate to the primary use of the premises as a dwelling unit. b. All activities of the home occupation shall be conducted indoors. c. The business shall be conducted by a member of the family residing within the primary residential premises plus no more than one (1) additional person not residing in the dwelling unit. ... h. ... Home occupations are required to obtain a City business license.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 852, passed June 15, 2026).
Full Breakdown
110(B)(7) sets out the baseline conditions for any home-based business in a Lakewood residence. The business has to remain subordinate to the primary use of the property as a dwelling, meaning it cannot dominate the home's appearance, floor area or character, and every activity connected to it must be conducted indoors rather than in the yard or driveway. Staffing is capped at family members who live in the home plus no more than one additional person who does not reside there, which keeps home occupations from becoming full commercial operations.
Subsection (e) bars a specific list of higher-impact uses outright: automobile, truck, boat and heavy equipment repair or body work; parking or storage of heavy equipment; storing building materials meant for other job sites; auto or boat painting and detailing; outdoor storage of business equipment or more than one business-related vehicle; vehicles over 10,000 pounds gross weight operated from or parked at the property; and taxicab, van shuttle or limousine services beyond office work. Home occupations are also barred from operating out of an accessory building located within the rear yard setback under subsection (f).
Every home occupation must obtain a City business license under subsection (h), which ties the zoning permission to Lakewood's separate business licensing chapter in Title 5 LMC.
Violations & Fines
Operating a home occupation without the required City business license, exceeding the one-employee limit, or running a prohibited use such as auto body work from a residence is a City Code violation. LMC 1.44.040's general civil penalty of up to $500.00 per day applies unless a more specific fine is set, and the City Manager or designee may first issue a notice of violation under Chapter 1.44 LMC.
Frequently Asked Questions
Can I hire an employee for my Lakewood home business?
What home businesses are banned outright in Lakewood?
Do I need a license to run a home occupation in Lakewood?
Sources & Official References
Other rules in Lakewood
How Lakewood compares: Easiest Cities to Run a Home Business·Compare Lakewood to another location·View the Washington home business overview
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Zoning & Home Occupation Permits in Nearby Cities
How other cities in this county handle zoning & home occupation permits.