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 Vermont, 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 zoning office for any specific restrictions. If you live in a community with a homeowners' association (HOA), you must also adhere to its rules, which may further limit business operations. Additionally, your property deed or residential lease agreement may have clauses affecting your ability to run a business from home. For tax purposes, you may need a tax permit for sales and use tax if you're selling goods or services, and a resale/reseller's certificate if you're purchasing products for resale. Certain professions require an occupational license, which is regulated by the state. You may also need to obtain a city or county business license, depending on local requirements. Lastly, if your business involves food preparation, childcare, or other activities that impact health and safety, you must obtain the appropriate permits from the relevant health department or other regulatory bodies. It's advisable to consult with an attorney to ensure you meet all legal requirements for your home-based business in Vermont.