August 4, 2026

Richmond considering changes to home-based business regulations

(WKYT) – Richmond city leaders are considering implementing updated regulations regarding home-based businesses.

During a city of Richmond commission meeting on Tuesday, May 12, City Attorney Chris Johnson presented the first reading of Ordinance 26-17, which he said would update the city’s development code for home-based businesses.

The proposed ordinance would create a two-tier system to categorize home-based businesses, and is designed to support small-scale entrepreneurship while preserving the residential character of neighborhoods, according to Johnson.

Type-one businesses would include the lowest-impact home businesses, Johnson said, and would include businesses without outside employees, deliveries, customer visits and on-site production and storage.

Type-one businesses would not have to have a permit, and would be allowed in all residential zoning districts. Johnson said this categorization is intended for administrative or remote service businesses.

However, type-two businesses would need a home occupation permit, and could have one employee that does not live in the home. The business owner would have to live on-site.

Exterior alterations cannot be made to type-two home-based businesses, such as signage and outdoor storage.

Type-two categorization would apply to businesses that do not meet the criteria to qualify as a type-one business, Johnson said.

Since the reading on May 12 was the first reading of the ordinance, the commission did not conduct a final vote. The commission did approve the first reading of Ordinance 26-17.

The second reading is set for Tuesday, May 26.