---
title: Terrace home-based business rules
question: "Can I run a business from my home?"
place: Terrace, British Columbia, Canada
place_path: ca/bc/terrace
category: Starting and running a business
owner: municipal
owner_body: City of Terrace
sources_read: 2026-11-05
review: machine_checked
canonical: "https://govhandbook.com/ca/bc/terrace/home-based-business/"
json: "https://govhandbook.com/ca/bc/terrace/home-based-business.json"
---

# Terrace home-based business rules

**Question:** Can I run a business from my home?

**Short answer:** Yes, with a City of Terrace business licence. A Level 1 home occupation is allowed in all zones that allow residential buildings; Level 2 needs a parcel of at least 550 m² and Level 3 at least 2,700 m². The home-based business fee is $68 a year.

**Who handles it:** Municipal (City of Terrace, https://www.terrace.ca)  
**Cost:** $68 a year for each home-based business classification (Business Licence Bylaw 2112, Table 5). Not refundable.  
**How long:** Not stated on the City's page.  
**Where:**
- Phone: Development Services, 250-615-4022
- Phone: Building / Licensing clerk, 250-615-4000
- Online: New business application (Civic Review), https://app.civicreview.com/application/626afd983c76f2ee6a64736d

## Key facts

- **Allowed:** Yes, with a business licence. A Level 1 home occupation is allowed in all zones that allow residential buildings; Level 2 needs a parcel of at least 550 m²; Level 3 at least 2,700 m². Each zone lists the levels it allows (R1: Level 1 or 2; AR1, AR2, RS1: Levels 1 to 3; R3: Level 1).
  - Source: [Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.8-7.1.10; zone use lists](https://www.terrace.ca/media/4249)
  - Official wording: "A Level 1 home occupation is permitted within all zones that allow residential" … "A Level 2 home occupation is permitted on parcels with a minimum size of 550" … "A Level 3 home occupation is permitted only on parcels with a minimum parcel" … "• Home Occupation – • Home Occupation – • Home Occupation – Level 1 or 2 Level 1 or 2 Level 1 or 2" … "Home Occupation – Level 1, 2 or 3" … "Secondary Uses • Home Occupation – Level 1"
  - Source: [Fact Sheet DS-02 Home Occupations, Chart](https://www.terrace.ca/sites/default/files/docs/business-development/planning-document/Fact-Sheets/ds-02-fact-sheet-home-occupations.pdf)
  - Official wording: "Please consult the Zoning Bylaw for regulations specific to your proposed home-based business."
  - Check: wording matched the official text retrieved 2026-11-06
- **Business licence:** Yes. All home occupations require a City business licence. Home-based business fee: $68 a year for each classification (not refundable). The licence runs January 1 to December 31 and must be renewed each year.
  - Source: [Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.5](https://www.terrace.ca/media/4249)
  - Official wording: "All home occupations require a City of Terrace Business License."
  - Source: [Business Licence Consolidated Bylaw 2112-2016, Schedule A, Table 5; s. 14.1, 5.2, 5.4](https://www.terrace.ca/media/3962)
  - Official wording: "A fee of $68.00 for each classification of business that is classified as a home" … "Every person carrying on a business as a home occupation in the City of" … "No business licence fee or part thereof paid hereunder shall be refundable."
  - Source: [Business Licences, Licence Fast Facts](https://www.terrace.ca/business-development/business-licences)
  - Official wording: "Valid from January 1 to December 31" … "Cost depends on type of business and start at $68"
  - Check: wording matched the official text retrieved 2026-11-06
- **Limits:** Level 1: 30% of floor area, no outside storage, no client visits, household members only. Level 2: 30% of floor area or 90 m², 1 non-resident employee, 2 clients at a time, 1 extra parking space. Level 3: 200 m² with screened outdoor storage, 2 non-resident employees, 5 clients, 1 extra space. Signs follow the Sign Bylaw.
  - Source: [Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.8, 7.1.9, 7.1.10](https://www.terrace.ca/media/4249)
  - Official wording: "The total area of a Level 1 home occupation may not exceed 30% of the gross" … "A Level 1 home occupation shall generate no client visits to the property." … "b. The total area of a Level 2 home occupation may not exceed 30% of the gross" … "floor area or 90 m2 of the principal building, whichever is less." … "and may employ no more than one non-resident employee." … "per day and no more than two client visits to the parcel at any given time." … "One additional off-street parking space is required for a Level 2 home" … "may not exceed 200 m2." … "will employ no more than two non-resident employees." … "Level 3 home occupations shall not generate more than five client visits to the" … "f. One additional off-street parking space is required for a Level 3 home" … "Signs advertising a home occupation are subject to the City of Terrace Sign Bylaw."
  - Source: [Fact Sheet DS-02 Home Occupations, Chart](https://www.terrace.ca/sites/default/files/docs/business-development/planning-document/Fact-Sheets/ds-02-fact-sheet-home-occupations.pdf)
  - Official wording: "0 1 2 (Non-Resident) Max. 20 visits/day On-Site Clients Permitted No Max. 5 clients at any given time Max. 2 clients at any given time"
  - Check: wording matched the official text retrieved 2026-11-06
- **Businesses not allowed:** The bylaw has no list of banned business types; it lists examples for each level. A trade contractor as a Level 3 home occupation is limited to AR1 and AR2 parcels. No home occupation may produce offensive noise, vibration, traffic, smoke, dust, odour, heat, glare or electrical or radio disturbance.
  - Source: [Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.3, 7.1.11](https://www.terrace.ca/media/4249)
  - Official wording: "No offensive noise, vibration, traffic, smoke, dust, odour, heat, glare, electrical or" … "radio disturbance shall be produced by a home occupation." … "shall be limited to parcels zoned AR1 or AR2, subject to the following regulations:"
  - Check: wording matched the official text retrieved 2026-11-06
- **Bylaw:** Zoning Bylaw No. 2069-2014, s. 7.1 (Home Occupation); Business Licence Bylaw No. 2112-2016, s. 14.0 and Schedule A
  - Source: [Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1](https://www.terrace.ca/media/4249)
  - Official wording: "7.1 Home Occupation" … "City of Terrace Zoning Bylaw No. 2069 - 2014"
  - Source: [Business Licence Consolidated Bylaw 2112-2016, Title page, s. 14](https://www.terrace.ca/media/3962)
  - Official wording: "BYLAW NO. 2112-2016/ 2129-2017/ 2135-2017/" … "14.0 HOME OCCUPATIONS"
  - Check: wording matched the official text retrieved 2026-11-06

## How it works

[Zoning Bylaw 2069](https://www.terrace.ca/media/4249) s. 7.1 allows home occupations in three levels. A home occupation must be secondary to residential use and wholly inside the dwelling or an accessory building. Each zone lists the levels it allows (R1: Level 1 or 2; AR1, AR2 and RS1: Levels 1 to 3; R3: Level 1).

| | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Minimum parcel | any | 550 m² | 2,700 m² |
| Size | 30% of floor area | 30% of floor area or 90 m² | 200 m² with screened outdoor storage |
| Non-resident employees | none | 1 | 2 |
| Clients | no visits | 2 at a time | 5 at a time |
| Extra parking | none | 1 space | 1 space |

## Steps

1. Confirm your zone on TerraMap or with Development Services (250-615-4022).
2. Apply for a business licence online through the City's Business Licences page.
3. Pay the fee. The licence runs January 1 to December 31 and must be renewed each year.

## Good to know

- A dwelling unit may have at most two licensed home occupations, and only one can be Level 2 or 3. Tenants can get a licence if the bylaw rules are met. A home inspection may be required.
- Level 1: no outside storage. Level 3 trade contractors are allowed in AR1 and AR2 only.
- No home occupation may cause offensive noise, vibration, traffic, smoke, dust, odour, heat, glare or electrical or radio disturbance.
- A secondary suite is not allowed with a Level 2 or 3 home occupation unless the parcel is at least 650 m².
- Signs advertising a home occupation follow the Sign Bylaw (Zoning s. 7.1.7).

## Official forms and pages

- [Development Services Fact Sheet DS-02, Home Occupations (PDF)](https://www.terrace.ca/sites/default/files/docs/business-development/planning-document/Fact-Sheets/ds-02-fact-sheet-home-occupations.pdf)
- [Zoning Bylaw 2069, section 7.1 (PDF)](https://www.terrace.ca/media/4249)
- [Business Licence Consolidated Bylaw 2112 (PDF)](https://www.terrace.ca/media/3962)

## Related questions

- [Terrace business licences: who needs one, fees and how to apply](https://govhandbook.com/ca/bc/terrace/business-licence.md)
- [Terrace short-term rental rules (Airbnb, Vrbo)](https://govhandbook.com/ca/bc/terrace/short-term-rental.md)

## The same question elsewhere

- [Home-based business rules in British Columbia, by municipality](https://govhandbook.com/ca/bc/home-based-business.md)
- [Kitimat](https://govhandbook.com/ca/bc/kitimat/home-based-business.md)
- [New Hazelton](https://govhandbook.com/ca/bc/new-hazelton/home-based-business.md)
- [Smithers](https://govhandbook.com/ca/bc/smithers/home-based-business.md)
- [Telkwa](https://govhandbook.com/ca/bc/telkwa/home-based-business.md)
- [Hazelton](https://govhandbook.com/ca/bc/hazelton/home-based-business.md)
- [Port Edward](https://govhandbook.com/ca/bc/port-edward/home-based-business.md)

## Sources

- [Zoning Consolidated Bylaw 2069-2014 (PDF), section 7.1 Home Occupation, City of Terrace](https://www.terrace.ca/media/4249) (read 2026-11-05)
- [Fact Sheet DS-02 Home Occupations (PDF), City of Terrace](https://www.terrace.ca/sites/default/files/docs/business-development/planning-document/Fact-Sheets/ds-02-fact-sheet-home-occupations.pdf) (read 2026-11-05)
- [Business Licence Consolidated Bylaw 2112-2016 (PDF), City of Terrace](https://www.terrace.ca/media/3962) (read 2026-11-05)
- [Business Licences, City of Terrace](https://www.terrace.ca/business-development/business-licences) (read 2026-11-05)

_Checked by script, not yet by a person: the official wording behind 5 of 5 facts was matched to the official text. Gov Handbook is an independent guide, not affiliated with City of Terrace. How answers are checked: https://govhandbook.com/methods/ · Canonical page: https://govhandbook.com/ca/bc/terrace/home-based-business/_