Merced, CA Home Business: Zoning & Home Occupation Permits (2026)
Key Facts
- Size cap
- 25% of floor area or 400 sq ft
- Minor occupation permit
- None; certificate + business license
- Major occupation permit
- Site Plan Review Permit + hearing
- Cottage food operation permit
- Minor Use Permit required
- Delivery hours
- 8 a.m.-8 p.m., Mon-Sat
Summary
Merced splits home-based businesses into 'minor' and 'major' home occupations under Chapter 20.48. A minor home occupation, limited to phone, computer, mail, and delivery-service work with no client visits, is permitted by right with just a certificate and business license. A major home occupation needs a Site Plan Review Permit and public hearing, or a minor use permit for a cottage food operation.
A.Minor Home Occupation. A minor home occupation that complies with this chapter is permitted by-right. No special permits or approvals from the Planning Division are required to establish or operate a minor home occupation, except a home occupation certificate and a city business license.B.Major Home Occupation.1.Minor Use Permit. A minor use permit shall be required to establish or operate a cottage food operation.2.Site Plan Review Permit. A site plan review permit shall be required for other major home occupations. A public hearing shall be required in accordance with Section 20.68.050 (Site Plan Review Permits) and Chapter 20.70 (Public Notice and Hearings).
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 85 - 1-26).
Full Breakdown
020 draws the line: a minor home occupation involves only telephone, computer, mail, and common delivery services, with no more than two client visits per week; anything beyond that, including any cottage food operation under the California Homemade Food Act, is a major home occupation. 030 sets the permit path. A minor home occupation needs no Planning Division approval at all, just a home occupation certificate and a city business license. 70 for any other major use. , Monday through Saturday; and no mechanical equipment, hazardous materials, or auto repair not normally associated with residential use is allowed. 050 for nuisance, code violations, or failure to commence within a year.
Violations & Fines
Under Section 20.48.050, the Director of Development Services may suspend a home occupation that becomes detrimental to public health, safety, or neighborhood character, violates any city, county, or state code, becomes a traffic or pedestrian hazard, or operates in a form different from what was approved. Suspension also follows if the business never commences within one year of approval or sits dormant for more than a year.
Frequently Asked Questions
Do I need a permit to run a home business in Merced?
How large can a Merced home occupation be?
Can I run a cottage food business from my Merced home?
Sources & Official References
Other rules in Merced
How Merced compares: Easiest Cities to Run a Home Business·California rules heatmap·Compare Merced to another location·View the California home business overview
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