Waukegan, IL Home Business: Zoning & Home Occupation Permits (2026)
Key Facts
- Location
- Permitted in any dwelling unit citywide
- License fee
- $100 non-day-care home occupation license
- Employee cap
- One non-resident employee maximum
- Operator residency
- Operator must live in the dwelling
- Excluded uses
- No wholesale sales, manufacturing, or industrial processing
- Day cares
- Excluded; follow Sec. 9.02.B.10 instead
- Fine range
- $25-$750 per day (Sec. 1-13)
Summary
Waukegan's UDO permits a home-based business in any dwelling unit citywide as an accessory use, but subjects it to a business license, a residency requirement for the operator, a one-employee cap, and a ban on any structural change that would alter the home's residential character.
21.Home-Based Business.a.Location. A home-based business is permitted within any dwelling unit in the City as part of a principal and/or accessory building in accordance with the following standards. Home-based business standards do not apply to day care homes which are regulated in accordance with the requirements of Section 9.02.B.10 (Day Care Home).b.Business License. All home-based businesses are subject to applicable businesses licensing and inspection requirements.c.Residential Character. The location and operation of a home-based business may not alter the residential character of the dwelling or neighborhood.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 113).
Full Breakdown
21 of the Unified Development Ordinance treats a home-based business as an accessory use permitted within any dwelling unit in the City, as part of either the principal structure or an accessory building, so long as it satisfies the standards written into the section. Subsection b makes clear that zoning approval is not the whole story: every home-based business is also subject to the City's business licensing and inspection requirements, and the Chapter 14 fee schedule at Sec. 00 flat license fee for a home occupation that is not a day care.
Subsection c forbids anything that would alter the residential character of the dwelling or the surrounding neighborhood, and subsection d backs that up by barring any structural alteration undertaken solely to accommodate the business. Subsection e lists the kind of uses the City has in mind: artists, consultants, counselors, craftspersons, home kitchen operators, designers, tutors, writers, and instructors of music, craft, or fine art, while flatly excluding wholesale sales, manufacturing, or industrial processing from the home occupation category. Subsection f requires the business operator to actually reside in the dwelling unit where the business is located, and subsection g caps outside staff at one employee who does not live there. 10 (Day Care Home). F.
Violations & Fines
The Zoning Administrator enforces Section 9.03.C.21 under the general enforcement authority of UDO Section 1.03.F, and may involve the Building Commissioner, Police Department, or Corporation Counsel to stop a home occupation that lacks a business license, houses a non-resident operator, or alters the dwelling's residential character. Because the UDO does not set a standalone fine for this section, violations fall under the Code's general penalty, Sec. 1-13(a): $25.00 to $750.00 per day, with each day of continued violation a separate offense, plus liability for the City's legal expenses.
Frequently Asked Questions
Do I need a permit to run a home business in Waukegan?
Can I hire employees for my Waukegan home business?
What businesses are not allowed as Waukegan home occupations?
Sources & Official References
Other rules in Waukegan
How Waukegan compares: Easiest Cities to Run a Home Business·Compare Waukegan to another location·View the Illinois home business overview
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