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1 Guide to Establishing a Home-Based Business In The Town Of Collingwood If you want to operate a Home-Based Business in Collingwood but aren t sure where to start, this guide has been designed to help!
2 45% of Canadians will be self-employed by 2020 Self-employed grew from 1.8 million in 1990 to 2.7 million in 2013 If you don t build your dream, someone will hire you to help build theirs. Dhirubhai Ambani Your home-based business is important to the Town, the community and the local economy It is estimated that over 55% of self-employed individuals run home-based businesses
3 3 CONTENTS Permitted Uses: Where can I operate a Home-Based Business?...4 What types of businesses can I run out of my home?...4 Can I operate my Home-Based Business out of my garage or shed?...5 Can I store materials on the property or display items for sale on my lawn?...5 I m planning to rent out the house that I operate my Home-Based Business from. Is this allowed?...5 Licensing: What approvals do I need from the Town of Collingwood before opening up my Home-Based Business?...6 I want to renovate my home to accommodate my Home-Based Business, do I need to get a Building Permit?...6 I want to make food and sell it to the public from my Home-Based Business. What approvals do I need?...6 Bed and Breakfast...7 Can I put up a sign to advertise my Home-Based Business?...7 Operations: What rules does my Home-Based Business need to follow?...8 Am I allowed to have employees?...8 Is there a restriction on the maximum number of customers that can visit my Home-Based Business at any one time?...9 Do I need to provide additional parking on my property for my employees and customers?...9 Resources: Contact & More Information...9 Zoning By-law...9 Business Support Services... 10
4 4 Guide to Establishing a Home-Based Business PERMITTED USES Where can I operate a Home-Based Business? A home occupation is permitted in any zone where a residential home is permitted, subject to the provisions outlined in this guide. To find out the zoning of your property, contact Planning Services at What types of businesses can I run out of my home? The following types of business are permitted under the Home Occupation By-Law: n Domestic arts such as catering, alterations, decorating services, etc. n Businesses related to the trades including plumbers, electricians, handyman, etc. n Small scale manufacturing / production of goods for sale n Artists n Private teaching including music and academics n Private home day care n Pet grooming n Other business services Contact Planning Services at if you have questions about whether or not your specific type of business can be operated from your home.
5 Guide to Establishing a Home-Based Business 5 Can I operate my Home-Based Business out of my garage or shed? Yes. Your business can be run out of your house or a detached accessory building (such as a garage or shed), but it cannot be run out of both at any given time. A maximum of 20 m 2 of the floor area of the garage or shed can be used for business purposes. Can I store materials on the property or display items for sale on my lawn? No. Outside storage or display of goods, equipment, materials or supplies is not allowed for Home-Based Businesses. You are allowed to store these items inside your house, garage, and/or shed to a maximum of 10m 2 of the area used by the Home-Based Business. I m planning to rent out the house that I operate my Home-Based Business from. Is this allowed? No, this not permitted. You must reside where you operate your Home-Based Business.
6 6 Guide to Establishing a Home-Based Business LICENSING What approvals do I need from the Town of Collingwood before opening up my Home-Based Business? You do not require any approvals from the Town provided you meet the Home-Based Business provision of the Zoning By-law. The Town does not require business licenses for Home-Based Businesses. However, you may need a Change of Use Building Permit or for any proposed renovations to the building. For more information contact Building Staff at I want to renovate my home to accommodate my Home- Based Business, do I need to get a Building Permit? If you are making structural changes, finishing your basement, or installing plumbing for sinks or washrooms, you will require a Building Permit. For more information contact Building Staff at Separate electrical permits are required by the Electrical Safety Authority. You may contact the Electrical Safety Authority at I want to make food and sell it to the public from my Home-Based Business. What approvals do I need? If you plan to sell food products to the public through a catering business or to sell at farmer s markets, you can prepare the food in your home. If you are selling to retail stores or to markets other than famer s markets, you must prepare the food in a separate, inspected kitchen (i.e. kitchen located in a detached garage or basement/back room with a separate entrance). You cannot use your home kitchen. For more information, contact the Simcoe County Health Unit at
7 Guide to Establishing a Home-Based Business 7 Bed and Breakfast If you plan on operating a bed and breakfast from your home, the following rules apply: 1. It needs to be located in a single detached home 2. A maximum of 3 guest rooms are allowed 3. The bed and breakfast cannot use the entire gross floor area of the home 4. The owner must live in the home 5. In addition to the owner, one additional employee who does not live in the home is allowed 6. A bed and breakfast can only operate in a home that has both municipal water and sewer services, unless it can be demonstrated that the required rules in the Building Code for septic and well water have been met 7. Additional rules also apply (ie. parking). Contact the municipality for more information at Can I put up a sign to advertise my Home-Based Business? Yes, but you must get a Sign Permit from the Town of Collingwood before you put up the sign. The one-time fee is $ If you are in a Residential zone, you are only allowed one ground sign on the property. The sign cannot be higher than 1.5 metres, or have a sign face larger than 0.2 metres squared. The sign must be set back at least 3 metres. For more information about the allowable size and location of the sign, contact Planning Staff at
8 8 Guide to Establishing a Home-Based Business OPERATIONS What rules does my Home-Based Business need to follow? 1. The house must be used as a residence. 2. Each home can only have one business running out of it. 3. The owner of the business must live in the home where the business is being operated. 4. No items are allowed to be stored or displayed outside. 5. One trailer used as part of the business is permitted, provided it is stored on the driveway, subject to recreation vehical restrictions. 6. Any inside display of products related to the business shall not exceed more than 10 m 2 of the area used by the business. 7. Your Home-Based Business can be a maximum size of 25% of the gross floor area of your home, or can be run in an accessory building (i.e. garage or shed) provided it is not more than a maximum of 20 m 2 of the floor area of the garage or shed is used for business purposes. 8. Do not create a nuisance with respect to hours of operation, odour, dust, smoke, noise, gas, glare, fumes, light, vibration, radiation, debris, heat, humidity, or garbage. 9. Do not interfere with your neighbours enjoyment of their property with respect to traffic, parking, or deliveries. 10. Do not interfere with your neighbours communications reception or electrical service. Am I allowed to have employees? Yes, but only one. Aside from persons living in the home, you can employ one additional person who is not an occupant of the home.
9 Guide to Establishing a Home-Based Business 9 Is there a restriction on the maximum number of customers that can visit my Home-Based Business at any one time? If the Home-Based Business includes teaching of any kind, a maximum of three students or clients can be taught at any given time. For other types of businesses, you are limited to the number of parking spaces available in your driveway or available according to the Town s Parking By-laws. Do I need to provide additional parking on my property for my employees and customers? Yes. You must provide one additional parking space for your employee. If you are operating a Bed and Breakfast you must provide 1 space per guest room in addition to the spaces required for the home. Customers must park on the surfaced driveway on your property. Where on-street parking is permitted, your customers may park on the street in accordance with the Town s By-laws. CONTACT & MORE INFORMATION If you have any inquiries about establishing a Home-Based Business or to find out the zoning of your property, contact Planning Staff at The Town s Zoning By-law, and the full Home-Based Business regulations, is available at the Town s website at The Town s Sign By-law, and full Home-Based Business sign regulations is available at CONSOLIDATED% pdf.
10 10 Guide to Establishing a Home-Based Business BUSINESS SUPPORT SERVICES Need help setting up your Home-Based Business? There are several organizations in the area that can help you set up your Home-Based Business. Town of Collingwood Planning & Building Services 55 Ste. Marie St., 3rd Floor (3rd floor of the Collingwood Public Library) PO Box 157 Collingwood, ON L9Y 3Z5 Planning Services: Building Services: Collingwood Business Development Centre 105 Hurontario Street Collingwood, Ontario L9Y 3Z5 Tel: dobusiness@collingwood.ca Web: collingwood.business Centre For Business and Economic Development 105 Hurontario Street Collingwood, Ontario L9Y 3Z5 Tel: info@centreforbusiness.ca Web: Collingwood Chamber of Commerce 115 Hurontario Street Suite 102 Collingwood, Ontario L9Y 2L9 Tel: info@collingwoodchamber.com Web: South Georgian Bay Small Business Enterprise Centre 105 Hurontario Street Collingwood, Ontario L9Y 3Z5 Tel: sbec@collingwood.ca Web: In partnership with COUNTY OF SIMCOE EDO ECONOMIC DEVELOPMENT OFFICE
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