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Memphis, TN 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
UDC § 2.7.4, Home Occupations
Employee limit
One non-family employee at most
Floor-area cap
25% of first floor space
Public contact hours
7 a.m. to 8 p.m. only
Group instruction cap
Over 10 students at once prohibited
Applies to
City of Memphis and unincorporated Shelby County

Summary

Memphis and Shelby County zoning lets residents run a home occupation without a special permit as long as it stays clearly incidental to the home's residential use, involves no more than one non-family employee, uses no more than 25% of the first floor, and limits public contact to 7 a.m. to 8 p.m. Nearly 30 uses, from vehicle repair to tattoo studios, are outright banned.

A. Prohibited Home Occupations: The following uses are not permitted as home occupations. ... 14. Child care center. ... B. Standards: The intent of a home occupation is to permit very limited nonresidential activity in a residential dwelling or accessory structure to a residential dwelling, provided such activity does not impact or detract from the residential character of the neighborhood. ... 3. No business storage or warehousing of material, supplies or equipment shall be permitted outside of the primary dwelling unit ... 6. A home occupation shall be subject to all applicable licenses and business taxes. 7. No more than one person, other than members of the family residing on the premises, shall be engaged in the home occupation. 8. Storage space and the operation of the business inside the dwelling unit may not exceed 25% of the first floor area of the residence. 9. Only one customer shall be permitted at the residence at a time ... 10. All public contact related to the home occupation shall be limited to the period between 7AM to 8PM. 11. No signage specifically associated with the home occupation shall be permitted.

Source: Memphis Business Tax OfficeView official code

Official source re-checked September 8, 2026: the cited page had not changed since it was quoted.

Full Breakdown

4 of the Unified Development Code, which governs home occupations the same way in the City of Memphis and unincorporated Shelby County, opens with a list of nearly 30 uses that can never qualify as a home occupation, including vehicle and body/fender repair, small engine repair, outdoor mechanical work, restaurants, funeral homes, animal hospitals and kennels (grooming and boarding included), stand-alone child care centers, beauty salons or barber shops serving more than one client at a time, adult-oriented establishments, body piercing and tattoo studios, massage parlors, warehousing, and welding or machine shops.

B treats the home occupation as an accessory use requiring no further zoning approval, provided it stays clearly incidental and subordinate to the dwelling's residential use and causes no change in the building's outside appearance. ; no business signage at all; and adequate off-street parking that cannot occupy a required front yard beyond an existing driveway. 24, and more than ten students at any one time is prohibited no matter what approval is sought.

Violations & Fines

A home occupation that exceeds the 25% floor-area cap, hires more than one outside employee, posts signage, runs past 8 p.m., or falls on the prohibited-use list can be shut down by code enforcement, denied its business license renewal, or cited, and unpermitted group instruction beyond ten students at a time is grounds for a stop-work or cease-operation order regardless of any permit sought.

Frequently Asked Questions

Do I need a permit to run a home-based business in Memphis?
Not a zoning permit, as long as the use is not on the prohibited list in Section 2.7.4.A and meets the standards in Section 2.7.4.B: no outside change to the home's appearance, no more than 25% of the first floor used, public contact limited to 7 a.m. to 8 p.m., and no more than one non-family employee. It still needs the applicable business licenses and taxes.
Can I teach music lessons or tutor students from my home?
Yes, within limits set by Section 2.7.4.C. Group instruction of seven or fewer students per hour is permitted outright as a home occupation. More than seven students per hour requires a Conditional Use Permit from the Board of Adjustment under Chapter 9.24, and more than ten students at the same time is prohibited no matter what permit is sought.
Can I run a dog grooming or boarding business from my house?
No. Section 2.7.4.A specifically bars animal hospitals and kennels, including animal grooming and boarding, from qualifying as a home occupation anywhere in Memphis or unincorporated Shelby County. That use has to locate on commercially or appropriately zoned property and meet the separate Animal Hospital/Kennel use standard in Section 2.6.3.H instead.

Sources & Official References

Other rules in Memphis

All Memphis rules

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

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