If you are starting a home-based business, you will need to be aware of any restrictions on the operation of your business, and any licenses or permits that will be required—whether you are baking pies, washing cars, babysitting children, grooming dogs, or providing counseling services. Some of the common sources and types of these restrictions, licenses, and permits are: (1) local zoning laws—including for signs for your business; (2) restrictions from your HOA (homeowners’ association), property deed, or residential lease agreement; (3) tax permit (sales and use tax) or resale/reseller’s certificate; (4) occupational license; (5) city or county business license; and (6) health and safety permit.

In Connecticut, starting a home-based business requires compliance with various regulations. Local zoning laws may restrict the type of business activities you can conduct in a residential area, including the use of signs. It's important to check with your local town or city zoning office for specific ordinances. If you live in a community with a homeowners' association (HOA), you must also adhere to any rules they have regarding businesses operated from home. Additionally, your property deed or residential lease agreement may have clauses that affect your ability to run a business from your home. For tax purposes, you may need to obtain a tax permit for sales and use tax if you are selling goods or services, and a resale or reseller's certificate if you are purchasing products for resale. Depending on the nature of your business, an occupational license may be required for certain professions. A city or county business license might also be necessary, although Connecticut does not have a state-wide requirement for a general business license. Lastly, if your business involves food preparation, childcare, or other activities that impact health and safety, you may need to secure relevant permits from the appropriate state or local health departments.