Understanding Zoning, Licensing, and Permits

No matter which governments — federal, state, or local — have jurisdiction in your particular place of business, you can bet that they all have something to say about how, when, and where you can —

and can't — run your business. Working your way through the maze of government regulations can certainly be one of the most confusing aspects of doing business, but it is critical for your success in the long run. When sufficiently motivated, most government agencies and departments aren't the slightest bit shy about issuing fines, imposing penalties, and closing down offending businesses.

Zoning

For some reason, many homeowners — particularly ones who live in quiet, residential areas — don't much like the idea of having a busy business move in next door. Just the thought of a constant parade of customer cars coming and going at all hours of the day or night, the clatter and noise coming from a makeshift appliance-repair shop out in your garage, or the vision of partly assembled cars littering the driveway, is enough to send many homeowners into a fit of concern (and even anger). And, indeed, when people buy their homes, they generally expect to get some measure of peace and quiet along with them.

Zoning laws are, among other things, the government's favorite way of trying to keep residential areas residential and business areas business — making everyone (well, almost everyone) happy in the process. And, in general, zoning laws do work. After a citizen makes a complaint, most jurisdictions follow an established procedure to determine if a business owner is breaking the rules or not — taking action only when necessary. Unfortunately, however, the very zoning laws that attempt to ensure that someone doesn't decide to build a coal-fired power generation plant across the street from your house are also the same laws that may restrict (and in some cases prevent) your ability to start a business in your own home.