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Most people hear that Utah exempts home businesses from city licensing and stop there. The law only waives the fee, and the city can still require a permit and enforce zoning. This guide covers what the state law says, then the Provo and Orem home occupation rules on customers, employees, signs and parking.
Under Utah Code 10-1-203(8), a city cannot charge a resident any fee to run a home-based business unless the business plus the household has a materially bigger offsite impact than the household alone. That waives the fee, not the paperwork: Provo and Orem both still run a home occupation permit or license, and both limit customers, employees and signs. Call your city before you hang a sign or hire a helper.
The rule is Utah Code 10-1-203(8)(a). A municipality may not charge any fee for a resident of the municipality to operate a home-based business, unless the combined offsite impact of the business and the primary residential use materially exceeds the offsite impact of the residence alone. In plain terms: a bookkeeper working from a spare bedroom pays nothing, and a business that sends a stream of cars to your street can be charged.
Read the verb closely. The statute bars fees. It does not stop a city from requiring a license or permit, and it does not touch zoning. The same section, subsection (2), still lets a city license any business and regulate it by ordinance. And under subsection (9)(a), a city may charge an administrative fee if an owner who is otherwise exempt asks for a license anyway.
Subsection (9)(b) also says a city has to tell home-based business owners about the exemption in any communication with them. If a city counter quotes you a fee, ask whether your business has more offsite impact than your household. We read the current version of the section (effective May 1, 2024) on le.utah.gov.
The fee is gone for most owners, but the permit is not. Utah has no statewide general business license, so the license lives with your city. If you live inside a city, that city decides. If you live in unincorporated Utah County, the county's Community Development office handles it, and the county requires an annual inspection to keep the license.
Expect to still file when any of these is true: you want customers at the house, you plan to hire someone who does not live there, you run a daycare or preschool, you work in food, or you need a state license for your trade. The county also notes that its license is not the same as approval from the health department or state licensing bodies, and the same is true in the cities.
State filings come first either way. If you use a name other than your own, register it with the Utah Division of Corporations before you apply, because Orem asks for the confirmation with the application. If you sell taxable goods, you also need a sales tax account. The full order of operations is in our Utah County business license guide.
Provo handles home businesses under City Code Chapter 14.41 and sorts them into minor and major home occupations. The city's permit page says some home-based businesses are exempt from a fee under state law and that major permits carry fees. Provo's code site and permit page blocked our automated reader, so the limits below come from a published copy of Chapter 14.41. Confirm each one with Development Services at (801) 852-6400 before you rely on it.
The baseline limits, which apply to every home occupation, cover four things. The business stays inside the home and takes no more than 49 percent of the floor area. People who do not live there cannot be employed on the premises. No sign or advertising goes on the property except a name plate. And you need enough off-street parking for every business vehicle, which includes customers and visitors.
A minor home occupation is one that meets those limits. For retail sales, the cap is two customers an hour between 8 a.m. and 9 p.m. The code lists examples such as tutoring two students at a time, family day care for up to six children, and a contractor who stores no equipment outside.
A major home occupation is one that needs more than the baseline allows, and Development Services decides it through a conditional use permit. The published code allows up to six customers an hour between 8 a.m. and 5 p.m., and one outside employee at a time on lots of at least 8,000 square feet. Provo's page also says permits are renewed annually if there are no violations or complaints.
Orem requires a Home Occupation License, applied for online. The application asks for your State of Utah business name registration confirmation, a copy of your driver's license, and the first page of a utility bill with your name and address. The license runs one year from the month you apply and expires on the last day of that month, and the city mails a renewal form about 45 days before.
The conditions sit in Orem City Code 22-14-15. We read them from a published copy of the code, so confirm with the city. The business must be run by immediate family who live in the home, though the code lets the city allow one employee who does not live there under limited traffic conditions. That employee needs a parking stall at least 8 feet by 18 feet on your lot.
Orem's rule on customers is the strictest in this guide. Where a non-resident employee is allowed, customers may not come to the home to receive or pay for products or services. The business also cannot show external evidence of itself or put up an advertising sign visible from outside, and it cannot take more than 1,000 square feet or 40 percent of the home, whichever is less. Traffic is capped at two vehicle round trips in any hour.
If you cook, tattoo, or run a pool or spa, Orem sends you to the Utah County Health Department first. Orem also posts a Home Occupation Inspection Checklist on its licensing page. Call the Orem Help Center at 801-229-7198 or stop in at 56 N. State Street before you apply.
The table compares the limits as published in each city's code. Verify with the city before you rely on a number.
| Rule | Provo (Ch. 14.41) | Orem (22-14-15) |
|---|---|---|
| Permit or license | Home occupation permit, minor or major | Home Occupation License, renews yearly |
| Fee | Some exempt under state law, major permits carry fees | Call the city; state law bars a fee for most home businesses |
| Customers at the house | 2 an hour for retail (minor); up to 6 an hour with a major permit | Not allowed where a non-resident employee is allowed |
| Outside employees | None for minor; 1 at a time on 8,000 sq ft lots with a major permit | One allowed under limited traffic conditions |
| Signs | Name plate only | No advertising sign visible from outside |
| Space | Up to 49% of floor area | 1,000 sq ft or 40% of the home, whichever is less |
| Parking | Enough off-street parking for business vehicles | One 8 x 18 foot stall for a non-resident employee |
The same state law applies everywhere in the county, but each city writes its own limits. Lehi's home occupation permit is usually free and bans signs and product displays, as we cover in the Lehi business license guide. American Fork charges nothing for a home business with no offsite impacts and $40 for one with impacts, per the current fee schedule, in our American Fork guide.
Springville says you do not need a city license at all if you stay under its four conditions, including fewer than six customer visits a day. Spanish Fork requires home occupations to apply and points to its Planning office for the limits. See the Spanish Fork and Springville pages.
In both cities, the yard sign is out. That pushes a home business toward channels that do not need your driveway: a Google Business Profile, word of mouth, and local newsletters. If you want to compare paid options, our where to advertise in Utah County guide prices several.
One of them is ours. Provo FOMO is a local newsletter with more than 3,100 subscribers, and a closing ad costs $99 per send, with a top image ad at $199. We sell those, so weigh it like any other quote and see the details on our advertise page. A home business that only takes appointments or online orders is a fair fit, because readers contact you instead of showing up unannounced.
