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Arroyo Grande · Building on your lot

Running a business from home in Arroyo Grande

Arroyo Grande home businesses need a permit and business license; only family members who live on the premises may work there.

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Key points

  • Home business: Arroyo Grande home businesses need a permit and business license; only family members who live on the premises may work there.

Each rule below links to the section of the Arroyo Grande Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Arroyo Grande's code says

Arroyo Grande code What Arroyo Grande's code adds
Customer visits
  • Customers cannot visit regularly; occasional visits may be allowed.
    Applies: Examples include selling fruits and vegetables or music lessons, if the planning director approves.
    § 16.16.160 · code text
    The use shall not allow customers or clientele to regularly visit dwellings. However, incidental visits may be permitted, such as, but not limited to, the sale of fruits and vegetables or music lessons (if approved by the planning director).
Employees
  • Only family members who live on the property can work in the business.
    § 16.16.160 · code text
    No persons, other than members of the family who reside on the premises, shall be engaged in such activity.
Permit
  • A home occupation permit and a city business license are required.
    § 16.16.160 · code text
    Immediately following the effective date of an approved home occupation permit, when no appeal has been filed, the applicant shall obtain a city business license.
Businesses not allowed
  • Automotive and other vehicle repair (body or mechanical), upholstery, painting or storage; barber and beauty shop; carpentry and cabinet making; welding and machine operation; medical offices, clinics and laboratories; animal hospitals and grooming facilities; contractor's storage yards; adult entertainment; exercise studios; musical, dancing, and educational instruction having more than five students at any one time and more than three classes per day; junk yards; and other uses the planning director determines to be similar to those listed above.
    § 16.16.160 · code text
    The following uses, either by operation or nature, are considered not to be incidental to or compatible with residential activities and therefore shall not be permitted as home occupations:

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Can I run a business from my home in Arroyo Grande?

Arroyo Grande home businesses need a permit and business license; only family members who live on the premises may work there.

General information, not legal advice.

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Arroyo Grande Municipal Code — full text