Merced · Building on your lot

Running a business from home in Merced

City rule: a home business may use 25% of the home or 400 sq ft, whichever is less; auto repair is not allowed.

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Key points

Home businesses: City rule: a home business may use 25% of the home or 400 sq ft, whichever is less; auto repair is not allowed.

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

What Merced's code says

Merced code What Merced's code adds
Space used	No more than 25% of the home's floor area or 400 square feet, whichever is less. § 20.48.040 · code text Home occupations shall not occupy more than twenty-five (25) percent of the floor area of the dwelling unit or four hundred (400) square feet, whichever is less.
Customer visits	No clients or customers may visit. Applies: Minor home occupations. § 20.48.040 · code text No clients or customers are permitted to visit a minor home occupation. No more than 6 clients per day. Applies: Major home occupations; visits 8:00 a.m. to 8:00 p.m. on weekdays only, unless the site plan review committee approves otherwise. § 20.48.040 · code text Not more than six (6) clients per day may visit a major home occupation. Not subject to the limits on customers coming to the home. Applies: Cottage food operations. § 20.48.040 · code text Cottage food operations are exempt from the restrictions on customers coming to the home, the sale of goods from the home, and any of the standards in this chapter if in conflict with state law.
Employees	Only people who live in the home may be employees. Applies: Minor home occupations. § 20.48.040 · code text Employees of a minor home occupation shall be limited to the persons residing in the dwelling unit. At most 1 employee besides the people who live in the home. Applies: Major home occupations, only if 1 extra off-street parking space is provided for the employee. § 20.48.040 · code text Major home occupations are allowed one (1) additional employee in addition to those residing in the dwelling unit as long as one (1) additional off-street parking space is provided for such employee.
Permit	A home occupation certificate and a city business license. Applies: Minor home occupations. § 20.48.030 · code text No special permits or approvals from the Planning Division are required to establish or operate a minor home occupation, except a home occupation certificate and a city business license. A minor use permit is required. Applies: Cottage food operations. § 20.48.030 · code text A minor use permit shall be required to establish or operate a cottage food operation. A site plan review permit is required. Applies: Major home occupations other than cottage food operations. § 20.48.030 · code text A site plan review permit shall be required for other major home occupations.
Businesses not allowed	auto repair in either minor or major home occupations § 20.48.040 · code text The storage of flammable, combustible, or explosive materials is prohibited as is auto repair in either minor or major home occupations.

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Can I run a business from my home in Merced?

City rule: a home business may use 25% of the home or 400 sq ft, whichever is less; auto repair is not allowed.

General information, not legal advice.

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Merced Municipal Code — full text