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 Massachusetts, 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. You should check with your city or town's zoning department 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. Depending on the nature of your business, you may need a tax permit for sales and use tax or a resale/reseller's certificate, which can be obtained from the Massachusetts Department of Revenue. Certain professions require an occupational license, and this is managed by various boards and agencies in the state. A city or county business license may also be necessary; this requirement varies by locality. Lastly, if your business involves food preparation, personal care, or other activities that impact health and safety, you may need a health and safety permit from your local board of health. It's important to research and obtain all necessary permits and licenses before starting your home-based business to ensure compliance with state and local regulations.