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 Kentucky, 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 for your business. It's important to check with your local planning and zoning office for any specific restrictions. Additionally, if you live in a community with a homeowners' association (HOA), you must adhere to its rules, which may further limit business operations. Your property deed or residential lease agreement may also impose restrictions. For tax purposes, you may need a tax permit for sales and use tax or a resale/reseller's certificate, which can be obtained through the Kentucky Department of Revenue. Depending on the nature of your business, an occupational license may be required, and this can vary by profession and locality. City or county business licenses may also be necessary and are typically obtained through the local city clerk or county clerk's office. Lastly, if your business involves food preparation, childcare, or other activities that impact health and safety, you may need a health and safety permit from the appropriate local or state health department. It's crucial to research and obtain all necessary licenses and permits before commencing business operations to ensure legal compliance.