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 Rhode Island, 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 city or town's planning department for specific zoning requirements. Additionally, if your home is governed by a homeowners' association (HOA), you must adhere to its rules, which may further limit business operations. Restrictions may also be present in your property deed or residential lease agreement. For tax purposes, a tax permit for sales and use tax might be necessary, along with a resale or reseller's certificate if you are selling goods. Depending on the nature of your business, an occupational license may be required, which is regulated by the Rhode Island Department of Business Regulation or other state agencies. A city or county business license may also be needed; this varies by locality. 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 state or local health department. It's advisable to consult with an attorney to ensure all legal requirements are met for your specific home-based business.