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Terrace home-based business rules

Can I run a business from my home?

Terrace, British ColumbiaChecked against official textSources read 2026-11-05

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.

Key facts

AllowedYes, 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).Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.8-7.1.10; zone use lists; Fact Sheet DS-02 Home Occupations, Chart · Wording matched the official text retrieved 2026-11-06
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
Please consult the Zoning Bylaw for regulations specific to your proposed home-based business.
Business licenceYes. 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.Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.5; Business Licence Consolidated Bylaw 2112-2016, Schedule A, Table 5; s. 14.1, 5.2, 5.4; Business Licences, Licence Fast Facts · Wording matched the official text retrieved 2026-11-06
Official wording
All home occupations require a City of Terrace Business License.
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.
Valid from January 1 to December 31
Cost depends on type of business and start at $68
LimitsLevel 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.Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.8, 7.1.9, 7.1.10; Fact Sheet DS-02 Home Occupations, Chart · Wording matched the official text retrieved 2026-11-06
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.
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
Businesses not allowedThe 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.Zoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1.3, 7.1.11 · Wording matched the official text retrieved 2026-11-06
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:
BylawZoning Bylaw No. 2069-2014, s. 7.1 (Home Occupation); Business Licence Bylaw No. 2112-2016, s. 14.0 and Schedule AZoning Consolidated Bylaw 2069-2014, section 7.1 Home Occupation, s. 7.1; Business Licence Consolidated Bylaw 2112-2016, Title page, s. 14 · Wording matched the official text retrieved 2026-11-06
Official wording
7.1 Home Occupation
City of Terrace Zoning Bylaw No. 2069 - 2014
BYLAW NO. 2112-2016/ 2129-2017/ 2135-2017/
14.0 HOME OCCUPATIONS

How it works

Zoning Bylaw 2069 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

The same question in other places

Kitimat · New Hazelton · Smithers · Telkwa · Hazelton · Port Edward

Home-based business rules in British Columbia, by municipality →

Sources

  1. Zoning Consolidated Bylaw 2069-2014 (PDF), section 7.1 Home Occupation, City of Terrace (read 2026-11-05)
  2. Fact Sheet DS-02 Home Occupations (PDF), City of Terrace (read 2026-11-05)
  3. Business Licence Consolidated Bylaw 2112-2016 (PDF), City of Terrace (read 2026-11-05)
  4. Business Licences, City of Terrace (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. How answers are checked.