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Sherman, TX Home Business: Zoning & Home Occupation Permits (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified October 2026

Key Facts

Eligible dwelling
Detached single-family dwelling unit only
Floor area cap
20 percent of main building floor area, including garages
Location
Wholly within the main building, not an accessory building
Employees
One employee other than occupants of the residence
Outdoor activity
Screened by a solid fence at least six feet high
Fine
Up to $2,000 per violation, each day separate

Summary

In the City of Sherman, Texas, a home occupation is allowed only as an accessory use to a detached single-family dwelling unit, in the districts the use chart marks for it. The business stays wholly inside the main building, uses no more than 20 percent of its floor area, and employs one person from outside the household.

Home occupations. ... (A) A home occupation shall be permitted in the zoning districts as indicated in the use chart and only when it is an accessory use to a detached single-family dwelling unit. ... (C) A home occupation shall be conducted wholly within the main building, and not in any accessory building. The total floor area to be used for a home occupation shall not exceed 20 percent of the total floor area of the main building, including garages. ... (D) Only one employee other than occupants of the residence may be employed in the home occupation. ... (K) Uses prohibited as a home occupation shall include the physical or medical treatment of persons or animals, beauty shops, rooming/boarding houses, restaurants, mortuary or funeral homes, dance studios, carpenter shops, electrical shops, massage establishments, plumber shops, heating and air conditioning shops, radio shops, auto repairing or painting, furniture repairing, sign painting or similar activities.

Full Breakdown

The Sherman Code of Ordinances defines a home occupation in § 14.08.001 as a business, profession, occupation or trade conducted within a dwelling unit or elsewhere on a lot primarily used for dwelling purposes for compensation or gain by a resident of the dwelling unit. The operating standards sit in note [2] to the use chart in § 14.10.001, and they attach wherever the chart carries that note.

Condition (A) ties the use to a detached single-family dwelling unit. Condition (C) requires the business to be conducted wholly within the main building and not in any accessory building, and caps the total floor area used at 20 percent of the total floor area of the main building, including garages. Instructional classes are the one carve-out: they can be held outside the main building, with a maximum of six students in each session.

Condition (D) allows only one employee other than the occupants of the residence. Anyone who receives a wage, salary or percentage of the profits directly related to the business counts as an employee, although coordinating or supervising employees who do not regularly visit the dwelling is not counted. Condition (E) bars exterior storage of materials, goods, supplies, vehicles or equipment, and condition (G) requires outdoor activities to be screened from the neighbor and public rights-of-way by a solid fence of at least six feet in height. Condition (H) permits product sales on the premises if every other condition is met, and condition (I) bans toxic, explosive, flammable, combustible, corrosive, radioactive or other hazardous materials on the site for business purposes.

Condition (K) lists uses prohibited as a home occupation, including physical or medical treatment of persons or animals, beauty shops, restaurants, massage establishments, auto repairing or painting, and sign painting. Development Services administers and enforces the zoning chapter under § 14.11.009.

Violations & Fines

A violation of the zoning chapter in the City of Sherman is a class C misdemeanor under § 14.09.003. On conviction the fine is not more than $2,000 plus court costs, and each day the violation continues is a separate offense. The city can also pursue a civil penalty of up to $1,000 per day for each violation, and can seek restraining orders and injunctions.

Frequently Asked Questions

How much of my house in Sherman, Texas can I use for a home business?
Condition (C) of the home occupation note in § 14.10.001 caps the floor area at 20 percent of the total floor area of the main building, and the garage counts toward that total. The work must happen wholly inside the main building, so an accessory building such as a detached shop does not qualify.
Can I hire employees for a home occupation in the City of Sherman?
Only one employee other than the occupants of the residence is allowed. Anyone paid a wage, salary or percentage of the profits tied to the business counts. Coordinating or supervising employees who do not regularly visit the dwelling for business purposes is excluded from that count under condition (D).
Which businesses are banned as home occupations in Sherman?
Condition (K) lists physical or medical treatment of persons or animals, beauty shops, rooming or boarding houses, restaurants, mortuary or funeral homes, dance studios, carpenter, electrical, plumber, heating and air conditioning and radio shops, massage establishments, auto repairing or painting, furniture repairing, sign painting and similar activities.

Sources & Official References

Other rules in Sherman

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How Sherman compares: Easiest Cities to Run a Home Business·Texas rules heatmap·Compare Sherman to another location·View the Texas home business overview

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