Home-based businesses in Richmond require a Home Occupation Permit and a Richmond Business License. Operations must be incidental to the residential use, with no significant external impacts. Cottage Food Operations are registered separately under California AB 1616/AB 1240. Cannabis commercial activity from home is prohibited.
Richmond regulates home businesses through a Home Occupation Permit (zoning review) combined with a Richmond Business License (tax registration). Permits are issued by Community Development Planning and the Finance Department. Typical standards: the business must be clearly incidental and secondary to the residential use; it must occupy no more than 25% of the dwelling's floor area; no outside employees (except in some cases with conditions); no customer visits, or only limited by appointment; no exterior evidence of the business (signage, equipment, or storage visible from the street); and no hazardous materials or processes inconsistent with a residential neighborhood. California's Cottage Food Operations law (AB 1616, AB 1240) allows home production of specified low-risk foods (baked goods, jams, dry spice blends, etc.) with state registration through the Contra Costa Environmental Health Department โ Class A (direct sales only) up to $75,000 gross annually, Class B (direct plus indirect retail) requires additional inspection. AB 626 Microenterprise Home Kitchen Operations permits cooked-food home sales in counties that opt in; Contra Costa has not opted in as of 2025. Short-term rental operations are regulated separately under STR-specific rules. Commercial cannabis activity (cultivation, manufacturing, retail) is generally prohibited from residential home occupations under both state and local rules, though personal cultivation of up to 6 plants is protected by Proposition 64. Richmond's Business License must be renewed annually with gross-receipts-based fees. Failing to register can result in back-taxes, penalties, and enforcement.
Contact your local code enforcement office for specific penalty information.
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Richmond, CA
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Richmond, CA
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