Little Elm, TX Home Business: Zoning Restrictions (2026)

The Little Elm zoning ordinance permits home occupations as an accessory use in all residential zoning districts. A home occupation must be clearly incidental and subordinate to the primary residential use of the property. The business must be conducted entirely within the principal dwelling and must not alter the residential character of the structure or neighborhood. No external evidence of commercial activity is permitted including signage (except as separately allowed), exterior storage of materials or equipment, or commercial vehicle parking beyond one clearly marked vehicle. No non-resident employees may work at the premises. Customer traffic must not exceed levels typical of a residential neighborhood. Deliveries must be limited to normal residential carriers such as USPS, UPS, and FedEx. Prohibited home occupations typically include auto repair, welding, commercial animal breeding, medical or dental offices with patient traffic, and retail sales from the premises. The floor area devoted to the home occupation may not exceed 25 percent of the total living area. Texas Local Government Code 250.008 prohibits cities from banning cottage food operations conducted from the home.