Home Businesses: Anaheim

Written by: Andrew Gale - Orange County - Small Business Attorney

I want to run a business from my home in Anaheim, how do I start?

Incorporation Attorneys in Orange California

Here at Gale and Vallance, we were contacted by a client who wanted to run a home-operated business in the city of Anaheim. Fred is an electrical contractor. He has been working in this profession for three years, but when the economy took a downturn, he decided to cut costs by terminating his commercial lease and running his business from his home. He needed an orange county business attorney to provide him information on how to legally operate a business out of his Anaheim residence.

There are two required forms that an Anaheim business owner must file to run his business from a home. The first is a City Business License. The second is a Home Occupational Permit. Both applications must be submitted at the same time.

City Business License

[WHAT]

The City Business License is a license to conduct business in Anaheim.

[WHY]

You will need to apply for and obtain a City Business License because “city law states that no person shall engage in business or transact and carry on a business, trade, profession, calling or occupation in the City without having procured a license from the City to do so or without complying with any and all applicable provision of Title 3 of the City ordinance relating to a business license.” (Anaheim City Website).

[WHERE]

A blank City Business License can be downloaded from the city of Anaheim’s website as a PDF.

[HOW]

Have the following information available when filling out the license application:

  • specific business description
  • business operation starting date at this location
  • names of the owners or officers of the business and their addresses
  • type of business entity (e.g., partnership or corporation)

Additionally, the following identification numbers will be required:

  • State Board of Equalization Sales Tax Account Number
  • Driver’s License Number
  • Federal Employer I.D. Number
  • State Employer I.D. Number
  • Social Security Number (if no Federal or State I.D. number is provided)
  • State Contractor’s License Number (if applicable)
  • State Contractor’s Classification (if applicable)

[COST]

The processing cost of a City Business License application in 2013 is $27.00. Now some bad news, additional fees will be charged when you submit the Home Occupational Permit form.

Founded 1857

Home Occupational Permit

[WHAT]

The Home Occupational Permit is for home-run businesses which are “incidental to and subordinate to the principal residential use and located on the same lot with such residential use.” Anaheim Municipal Code Section 18.92.110.

[WHY]

In other words, you will need a Home Occupational Permit if you run your business within a home.

[WHERE]

A blank Home Occupational Permit form can be downloaded from the anaheim.net website as a PDF.

[HOW]

The permit requires the following information: name, residence, and business description. Permit approval is subject to compliance with code 18.38.130. The following are some common reasons permits are rejected:

  1. Sales of products or services are prohibited unless the sale is by mail, delivery service, the internet, or telephone.
  2. There may be no significant increase in pedestrian or vehicle traffic because of the operation of the business.
  3. There may be no significant noise, odor, vibrations, fumes, or smoke as a result of operating the business.
  4. Storage of business supplies must be enclosed and out of the public view.
  5. The exterior structure of the building where the business is run must continue to be recognized as a residence.

[COST]

The processing cost of a Home Occupational Permit can be found at the following website and is subject to change.

http://www.anaheim.net/departmentfolders/planning/Fees/feeschedule.pdf

Home Businesses: Anaheim

Fred will need to completely fill out and submit the license and permit applications, and pay the City of Anaheim’s Business License Division the required fees for the processing of those applications. Once submitted and processed, Fred will receive an Anaheim City Business License and a Home Occupational Permit confirming that his home business is registered.

For more assistance or to ask an orange county business attorney specific questions about your business, please contact us at info@galeandvallance.com, or (714) 634-1414, or www.galeandvallance.com.


Andrew Gale – Incorporation Attorney

Attorney at Law Offices 1820 West Orangewood Avenue, Suite 104a, Orange, CA 92868 Office: +1 (714) 634-4838. I provide legal advice, counseling and related services to entrepreneurs including the formation and management of their corporations and estate plans.

My Law Office is based in Orange County California and I have practiced law for 30 years. I have given advice to more than 1000 small business owners on the best ways to set up a company, what types of business entities (corporations, limited liability companies, partnerships) are best suited for them and their small business, how to legally run the business to protect their assets and how to successfully transfer the business to family or key employees through the proper use of estate planning and trusts.