Home Business Rules in Indianapolis, IN (2026)

In Indianapolis, IN, home-based businesses are permitted subject to specific rules designed to preserve residential character while allowing residents to run legitimate businesses from their homes. A Indianapolis Business License from Indianapolis Revenue Department; Zoning compliance required is required before operating. The Indianapolis Department of Metropolitan Development (DMD) — Building Permits or Indianapolis Department of Metropolitan Development (DMD) handles home occupation applications and enforcement. Regulations generally prohibit on-site employees, customer visits, and any external evidence of business activity. Below you will find the current permit requirements, restrictions, prohibited business types, and cottage food law provisions for Indianapolis.

Permit Requirements

Permit Required: Indianapolis Business License from Indianapolis Revenue Department; Zoning compliance required. Fee: 50. Apply through the Indianapolis Department of Metropolitan Development (DMD) — Building Permits or online at their permit portal. Phone: (317) 327-5136. Permits typically must be renewed annually. Operating without a required home occupation permit can result in fines and a requirement to cease business activity immediately.

Operating Restrictions

Home Business Restrictions in Indianapolis: 1. Home occupation must be subordinate to residential character of premises 2. No exterior alterations indicating commercial activity 3. One non-illuminated nameplate sign (2 sqft maximum) 4. No customers or clients visiting premises (except by appointment for permitted home professionals) 5. No employees other than residents of the dwelling 6. Business use limited to 25% of gross floor area 7. No commercial vehicles stored on property 8. No mechanical equipment generating noise, odors, or vibration beyond property line Violations of home occupation rules can result in complaints from neighbors, code enforcement investigations, permit revocation, and daily fines.

• •Home occupation must be subordinate to residential character of premises
• •No exterior alterations indicating commercial activity
• •One non-illuminated nameplate sign (2 sqft maximum)
• •No customers or clients visiting premises (except by appointment for permitted home professionals)
• •No employees other than residents of the dwelling
• •Business use limited to 25% of gross floor area
• •No commercial vehicles stored on property
• •No mechanical equipment generating noise, odors, or vibration beyond property line

Prohibited Business Types

The following business types are specifically prohibited from operating as home businesses in Indianapolis: Auto body repair or painting; Salon or barbershop with client traffic; Medical/dental office with patients; Retail business with customer access; Food manufacturing for retail (requires Marion County Health Department license). This list may not be exhaustive — contact the Indianapolis Department of Metropolitan Development (DMD) to verify whether your specific business type is allowed under home occupation rules.

• ✕Auto body repair or painting
• ✕Salon or barbershop with client traffic
• ✕Medical/dental office with patients
• ✕Retail business with customer access
• ✕Food manufacturing for retail (requires Marion County Health Department license)

Cottage Food Law

Frequently Asked Questions