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Home-Based Businesses

  • There are two types of home-based businesses: Type I and Type II.

    The following will help you determine which type your business is and which type of home-based business license application to complete. 

    Additional information

    • A Type I home-based business license is required only if your home-based business is inside Gresham city limits. 
    • If the business is a state-approved daycare or adult care home, you can apply for a business license directly without reviewing the home-based business page (these are not Type I or II businesses).

    Type I vs. Type II home-based business criteria

    • Type I Home-Based Business
    • Type II Home-Based Business
    Type I Home-Based Business

    If your answer to all of the statements below is yes, your home-based business is a Type I business.

    If your answer to any of the statements below is no, your business is a Type II business.


    • Work is conducted only by residents of the home.
    • No customers or employees come to the site.
    • No deliveries are made to the site apart from regular mail or parcel delivery.
    • Business takes place only within the home or garage.
    • No more than half the total floor area is used in connection with the business.
    • No signs promote the business.
    • No one can detect, from abutting residences or public rights-of-way, that the home is used for any non-dwelling purpose.
    • The business doesn't change the occupancy classification as prescribed by the residential building code.
    • No materials or equipment associated with the business are stored outside. 
    • No hazardous materials are stored that are not normally found in a residence. 
    • No commercially licensed ¾ ton vehicles are parked at the residence in connection with the business.
    • No noise, vibrations, heat, glare, or visual or audible electrical interference is generated or detectable beyond the dwelling's property line.
    • No vehicle repair, maintenance, or dismantling; employee/crew staging; or industrial activities take place on the property.

    If your business meets all of the above criteria:

    Type II Home-Based Business

    A Type II permit is required when a home-based business:

    • Involves customers or clients visiting the residence of the applicant
    • Includes non-family members or non-residents as employees
    • Will receive deliveries other than those made by small-scale carriers normally found in residential areas, such as the U.S. Postal Service, UPS, FedEx or courier service
    • Will remain within the confines of the dwelling unit or garage
    1. Before applying for a home-based business license, read the following:
    2. Next, review and complete the following before applying for a permit:

    Note: You will be asked to attach this information to your online application.

    Apply for a permit.

    3. Lastly, apply for a business license.

    After you receive approval for a Type II permit from Urban Design and Planning, you can apply for your home-based business license. Note: You will be asked to include the planning case number provided as part of your Type II permit approval from the City.

    Contact us

    While not required, applicants may schedule a pre-application meeting with City staff to review the proposal's compliance with the City's code standards. 

    To schedule a meeting, contact Permit Services at 503-618-2845.