Can You Run a Business From Your Garage in San Antonio? Home Occupation Rules Explained

This guide is part of our Garage Business Legal Guide.

San Antonio is one of the friendlier big cities for a home-based business. Its zoning code allows home occupations on residential property without a certificate of occupancy, and a 2025 Texas law limits how far any city can go in licensing low-impact home businesses. There are still real rules, though, and a few of them matter a lot if your “shop” is the garage.

Quick facts

The rules: Section 35-378, “Home Occupations,” in Chapter 35 (the Unified Development Code) of San Antonio’s City Code.
Permit: the section states that no certificate of occupancy is required for a home occupation.
State law: Texas Local Government Code Section 229.902 (added by House Bill 2464 in 2025) bars cities from requiring a license or permit for a “no-impact” home-based business.
Signs: one nameplate up to 1 square foot, not lit, attached flat to the house or visible through a window.
Outdoor display or storage: not allowed.
Employees: allowed, as long as employees, residents and customers together stay within the home’s permitted occupancy.
Prohibited: vehicle painting, service or repair; animal hospitals, kennels, stables and training schools; restaurants and catering; and a few others.

Do you need a permit or license in San Antonio?

For the zoning side, generally no. Subsection 35-378(a)(8) states plainly that a home occupation does not need a certificate of occupancy. That is different from cities like Phoenix or Los Angeles, which run formal home-occupation permit or registration processes.

Texas law backs this up. Section 229.902 of the Local Government Code, added by House Bill 2464, says a city may not prohibit a “no-impact home-based business” or require its operator or the property owner to get a license, permit or other approval to run it.

Under the statute, a business counts as “no-impact” only if it meets all four of these tests:

Employees plus clients or customers on the property at any one time stay within the city’s occupancy limit for the property.
It doesn’t generate on-street parking or a substantial increase in traffic.
None of its activities are visible from a street.
It doesn’t substantially increase noise or violate a city noise rule.

Cities can still require home businesses to follow fire, building, health, traffic, waste and noise rules and to remain secondary to the residential use. “No license” does not mean “no rules.”

San Antonio updated its own section to match. A city Development Services fact sheet from August 2025 said Section 35-378 would be amended because of HB 2464 to clarify that employees are allowed on site, to prohibit on-street parking generated by a home occupation, and to tie occupancy to the San Antonio Property Maintenance Code. The code’s history note lists an amending ordinance dated September 4, 2025. (For how city, county and state licenses fit together more generally, see our business license guide.)

The general requirements in Section 35-378(a)

Keep it looking like a house

Subsection (a)(1) says the outside of the home and property can’t be altered, and the business can’t make the place look or feel less residential through colors, materials, construction, lighting, signs, extra traffic, or odors, sounds or vibrations. The same subsection notes that the city’s noise, nuisance and short-term rental rules also apply.

Nothing outside, nothing visible from the street

Subsection (a)(2) bans outdoor display of goods and outdoor storage of equipment or materials used in the business. Subsection (a)(5) requires the business to be conducted entirely within the residential property and says activities must not be visible from the street.

For a garage business, that is the line to plan around: working with the door open to the street, or staging lumber, rental gear or products on the driveway, can put you out of compliance.

Signs

Subsection (a)(3) bars advertising signs on the premises and any other advertising that calls attention to the fact that the home is being used for a business, except a telephone number listing. You may have one nameplate of up to 1 square foot, as long as it is not illuminated and is attached flat to the house or visible through a window. Yard signs and banners are out.

Employees and customers

Subsection (a)(4) allows employees to work at the home, but the number of employees, combined with the people who live there and the business’s customers, can’t exceed the dwelling’s permitted occupancy. The section does not set a separate numeric cap on customer visits or business hours, but subsection (b) bans any home occupation that creates on-street parking or substantially increases traffic. Appointment-only pickups with customers parking in your driveway are the safer pattern.

Equipment that affects the house or the grid

Subsection (a)(6) prohibits electrical or mechanical equipment that would change the dwelling’s fire rating, cause visible or audible interference with radio or TV reception, or cause line-voltage fluctuations outside the home. If you run welders, kilns, large compressors or similar gear, check this line and talk to a licensed electrician before you plug in. Our garage workshop fire code guide covers fuels, finishes and batteries.

Deliveries

Subsection (a)(7) says the home occupation can’t involve commercial vehicles delivering materials to or from the property. Ask the city if you’re unsure whether your delivery setup counts.

Unlike many cities, Section 35-378 sets no percentage or square-footage limit on how much of the home or garage the business may use.

Businesses San Antonio prohibits at home

Subsection 35-378(b) lists uses that are not allowed as home occupations:

Vehicle painting, service or repair.
Animal hospitals, kennels, stables, and obedience or training schools.
Restaurants or catering, and preparing food for resale, except cottage foods and whole, uncut produce as defined in the code.
Sexually oriented businesses, selling alcohol or drugs, and structured sober living homes.

That rules out an auto repair or paint shop in a San Antonio garage; our auto repair and detailing guide explains why many cities draw that line.

On food, the San Antonio Metropolitan Health District’s food permits page says only people who meet the state’s Cottage Food Regulations may produce food in their homes, and that operators who don’t are violating state law as well as city health and zoning codes.

State and county items that still apply

Texas sales and use tax permit

If you sell or lease tangible goods in Texas, or sell taxable services, the Texas Comptroller says you need a sales and use tax permit. As of October 2026, the Comptroller states there is no fee for the permit, though you may be required to post a security bond. You can apply online or with Form AP-201. See our sales tax basics guide.

Assumed name (DBA) in Bexar County

If you operate under a name other than your own, you will generally file an assumed name certificate. The Bexar County Clerk handles these for unincorporated businesses. As of October 2026, the county lists the fee as $13 for one owner, plus 50 cents for each additional owner, and the certificate must be acknowledged by a deputy clerk or notarized before filing. More in our DBA guide.

HOAs, deed restrictions and leases

Texas’s home-business law expressly says it does not stop a homeowners’ association or other private agreement from enforcing its own rules or deed restrictions. Many San Antonio subdivisions have HOAs, so read your covenants before you set up shop; they can be stricter than the city. If you rent, get written permission from your landlord. And zoning compliance doesn’t make your homeowner’s policy cover the business; see our home business insurance guide.

For comparison with other Texas cities, see our guides to Dallas and Houston, which has no zoning code at all.

A quick San Antonio checklist

Read Section 35-378 yourself and confirm your business isn’t on the prohibited list.
Keep all work, storage and products indoors and out of view of the street.
Limit signs to one unlit nameplate of 1 square foot or less.
Make sure customers and employees park off the street and visits don’t noticeably add traffic.
Check heavy electrical equipment with an electrician.
Get a Texas sales and use tax permit if you sell taxable goods or services.
File an assumed name certificate with Bexar County if you use a business name.
Check your HOA rules or lease, and talk to your insurer.

This article is general information, not legal advice. Codes and fees change, and how a rule applies depends on your property and your business. Before you invest, confirm the details with the City of San Antonio’s Development Services Department (or call 311) and, where needed, a qualified professional.

Can You Run a Business From Your Garage in San Antonio? Home Occupation Rules Explained

Quick facts

Do you need a permit or license in San Antonio?