Home Business Rules in Memphis, TN (2026)

In Memphis, TN, home-based businesses are permitted subject to specific rules designed to preserve residential character while allowing residents to run legitimate businesses from their homes. No city permit is required, though deed restrictions or state licensing may apply. The Memphis Division of Planning and Development or Memphis and Shelby County Division of Planning and Development 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 Memphis.

Permit Requirements

No separate permit — regulated under Home Occupation provisions in Memphis UDC. No city permit application or fee is required to operate a home-based business in Memphis under current regulations. However, state professional licensing requirements still apply (contractors, real estate agents, cosmetologists, etc.). Check your property's deed restrictions — many Memphis neighborhoods have private deed restrictions that prohibit commercial activity in residential areas regardless of city rules.

Operating Restrictions

Home Business Restrictions in Memphis: 1. Business must be incidental and subordinate to the primary residential use 2. No employees not residing in the dwelling 3. No customer, client, or delivery traffic beyond incidental 4. No exterior storage of commercial vehicles, materials, or equipment 5. No exterior signs indicating business activity (residential name plate permitted) 6. No mechanical equipment creating noise, odors, or vibration beyond property line 7. Business activity limited to 25% of total floor area Violations of home occupation rules can result in complaints from neighbors, code enforcement investigations, permit revocation, and daily fines.

• •Business must be incidental and subordinate to the primary residential use
• •No employees not residing in the dwelling
• •No customer, client, or delivery traffic beyond incidental
• •No exterior storage of commercial vehicles, materials, or equipment
• •No exterior signs indicating business activity (residential name plate permitted)
• •No mechanical equipment creating noise, odors, or vibration beyond property line
• •Business activity limited to 25% of total floor area

Prohibited Business Types

The following business types are specifically prohibited from operating as home businesses in Memphis: Auto repair or auto body with customer vehicles on premises; Beauty salon or barbershop with client traffic; Retail with walk-in customers; Medical or dental office with patient visits; Firearms dealer; Any business generating traffic, parking, or nuisance impacts. This list may not be exhaustive — contact the Memphis and Shelby County Division of Planning and Development to verify whether your specific business type is allowed under home occupation rules.

• ✕Auto repair or auto body with customer vehicles on premises
• ✕Beauty salon or barbershop with client traffic
• ✕Retail with walk-in customers
• ✕Medical or dental office with patient visits
• ✕Firearms dealer
• ✕Any business generating traffic, parking, or nuisance impacts

Cottage Food Law

Frequently Asked Questions