Gallatin Home-Based Business Rules: A Step-by-Step Guide

Before operating a home-based business in Gallatin, determine whether the property is inside Gallatin city limits or in unincorporated Sumner County. City applicants should meet with the Gallatin Planning Department before applying for a business license. County applicants should review the current zoning resolution and, when applicable, submit the Minor Home-Based Business Application. Business-license, building, food, child-care and state tax requirements may also apply.

If you want to run a business from your Gallatin-area home, start with zoning, not the business license. The rules differ depending on whether your property is inside the City of Gallatin or in unincorporated Sumner County. The city and county use different home-business standards, including different limits for customers, employees, vehicles, signs and approvals.

The safest sequence is: identify your jurisdiction, check the zoning rules, contact the responsible planning office, obtain any required zoning or building approval, and then apply for the applicable business licenses and tax registrations.

> Last verified: August 15, 2026. City of Gallatin, Sumner County and Tennessee Department of Revenue sources were reviewed. Because the city has a zoning-code update scheduled for a public hearing on August 18, 2026, recheck the city rules before publication.

Start by identifying your jurisdiction

A Gallatin mailing address does not necessarily mean the property is inside the city limits. City properties follow the City of Gallatin Zoning Ordinance. Properties outside the city limits generally follow the Sumner County Zoning Resolution.

Use the City of Gallatin planning and zoning resources or the city’s zoning map to determine whether the property is inside the city. If the property is outside the city, use Sumner County’s zoning map and contact the county Planning and Zoning Section.

This distinction matters because a home occupation that fits the city’s rules may not fit the county’s minor-business limits, and vice versa.

Gallatin city home occupation rules

The City of Gallatin’s current zoning ordinance includes Section 12.14, “Home Occupations/Home-based Businesses.” It says an owner or operator must meet with a representative of the City Planning Department before or when applying for a business license so the proposed use can be evaluated under the zoning ordinance and other city codes.

Uses generally allowed

The city ordinance lists several examples of allowed low-impact home businesses, including:

• Limited day care, subject to the city’s day-care classification;
• Personal instruction, such as fine arts, crafts, individual academic instruction and individual fitness training;
• General office work without customer visits;
• Artisan production or an art studio;
• Retail trade when the activity occurs off-site;
• Personal recording or video services; and
• Other similar low-impact uses approved by the Zoning Administrator.

The list is not a blanket approval for every business. The Planning Department must determine whether the proposed activity fits the ordinance and whether other city requirements apply.

Space, employees, sales and storage

Under the current city ordinance, the business must remain incidental and subordinate to the home’s residential use and may occupy no more than 25% of the floor area of the dwelling used for the business. More than one home occupation may be allowed at a dwelling, but the businesses must operate entirely within the dwelling or an accessory building.

The city ordinance allows one person who is not a resident to work in the home occupation. However, no more than three people may be employed in all home occupations licensed at the residence.

The city also prohibits on-site sales of goods, with an exception for telephone and online sales. Business materials, goods and equipment must be stored inside the dwelling or a fully enclosed accessory structure. Outside storage of business equipment or supplies is not allowed.

Noise, traffic, parking and signage

A Gallatin home-based business may not disrupt the peace of the neighborhood or create excessive noise, traffic, nuisance, fire hazards or other adverse effects on adjoining residences. Equipment or processes that create detectable noise, vibration, glare, fumes, odors or electrical interference off the lot are not allowed under the current ordinance.

Traffic must not exceed what would normally be expected from a residence without a licensed home occupation. Any business-related parking must be provided off the street and outside the required front yard.

The ordinance allows one vehicle with a company logo to be parked on the property if it complies with residential truck-parking rules and is behind the front building setback. A home occupation may have one non-illuminated sign no larger than one square foot, mounted flat against the wall of the principal building. Temporary or exempt signs may not be placed on the lot for the home occupation.

The city’s ordinance also states that a home-occupation permit becomes void when the resident’s occupancy ends, is not transferable to another person or address, and expires 365 days after issuance unless renewed. A zoning administrator may revoke a permit after verified complaints and a determination that violations occurred.

Unincorporated Sumner County home-based business rules

Sumner County’s zoning resolution, effective December 8, 2025, distinguishes between minor and major home-based businesses. The county’s Planning and Zoning page provides the current zoning resolution and a Minor Home-Based Business Application.

Minor home-based businesses

The county resolution says minor home-based businesses are permitted in residential zoning districts when the applicable requirements are met. The Planning Director issues the permit or may forward the matter to the Board of Zoning Appeals for a special-exception review.

The principal limits include:

• No more than one nonresident employee on the premises at one time;
• Use of no more than 25% of the principal structure’s gross floor area;
• No more than 500 square feet when the business is conducted entirely in an approved accessory structure;
• No more than one business vehicle parked or stored on the property;
• No business vehicle parked in the front yard;
• No additional parking beyond what is required for the residential use;
• No more than two customer or client visits per day, with no more than one customer vehicle present at one time;
• No outdoor storage of business materials, except for the permitted business vehicle; and
• No signage.

The county’s application says minor home-based businesses cannot include automobile or vehicle repair, kennels, veterinary clinics or hospitals, medical or dental clinics or hospitals, restaurants, clubs, drinking establishments, undertaking or funeral parlors, adult entertainment or most retail sales. Goods made on the premises are treated differently under the county’s listed exception.

All county home-based businesses must operate within the principal practitioner’s bona fide residence or an approved accessory building. The business cannot change the dwelling’s outside appearance, display stock visible from the street, or create vibrations, heat, glare, dust, odors, noise or smoke discernible at the property lines. Delivery vehicles are limited to passenger vehicles, mail carriers and express carriers such as UPS, FedEx and DHL.

Major home-based businesses

A major home-based business requires approval of a special exception from the Sumner County Board of Zoning Appeals. The county’s standards allow more activity than the minor category but still limit neighborhood impacts.

The current resolution provides for up to three nonresident employees on the premises at one time, up to two business vehicles, no more than 10 customer or client visits per day and no more than five customers or clients present at one time. The Board of Zoning Appeals may require additional parking. Outdoor storage may be allowed with Board approval, and signage is limited to one attached sign of no more than five square feet per residential lot.

The county’s major-business provisions exclude medical and dental clinics or hospitals, restaurants, clubs, drinking establishments, undertaking and funeral parlors, and adult entertainment. The Board of Zoning Appeals reviews the special-exception request under the county’s standards.

Business licenses and Tennessee tax registration

The City of Gallatin says all businesses operating within city limits—including home-based businesses, contractors and nonprofits—must obtain a business license before beginning operations. The city lists a $15 license fee and directs applicants to obtain the applicable Sumner County license as well.

Tennessee’s Department of Revenue explains that businesses with more than $3,000 and less than $100,000 in annual gross receipts generally obtain a minimal activity license. Businesses with $100,000 or more in taxable receipts generally require a standard business license and business-tax registration. The department says a separate license is required for each business location.

Because thresholds, classifications and exemptions can depend on the business activity, contact the city or county business-tax official and the Tennessee Department of Revenue before relying on a general threshold. Sales-tax registration may also be required for taxable products or services.

The Gallatin business-license page says applicants should verify planning approval, codes requirements and, when applicable, state registration, Alcoholic Beverage Commission approval and health-department approval. Applications may be submitted by email, mail or in person to the City Recorder’s Office.

Step-by-step startup checklist

1. Confirm the jurisdiction. Determine whether the property is inside Gallatin city limits or in unincorporated Sumner County.
2. Describe the actual business activity. Include whether customers will visit, whether employees will work on-site, what equipment or materials will be stored, and whether deliveries or vehicles are involved.
3. Check zoning. City applicants should contact Gallatin Planning. County applicants should review the zoning resolution and Minor Home-Based Business Application.
4. Determine whether the use is minor, major or otherwise restricted. A county major business requires Board of Zoning Appeals approval. A city use may require additional review depending on its activity and district.
5. Check building, fire, health and child-care requirements. Remodeling may require a building permit. Gallatin specifically identifies additional licensing, building, fire and health requirements for residential child care and food preparation.
6. Apply for the applicable zoning approval. Do not begin a customer-facing or higher-impact operation before the responsible planning office confirms the use.
7. Apply for city and county business licenses. Complete the appropriate business-tax registration and pay the applicable license fee.
8. Review state tax obligations. Register for sales and use tax or other state taxes when the business activity requires it.
9. Check private restrictions. Review your lease, deed, subdivision covenants and homeowners-association rules separately.
10. Set a recurring review date. Home-business rules, forms, fees and zoning codes can change. Recheck official sources at least every 90 days for a frequently verified local service page..

Official contacts and forms

City of Gallatin Planning Department

• Address: 132 W. Main St., Gallatin, TN 37066
• Phone: 615-451-5796
• Use it for: City zoning, home-occupation review and zoning questions.

City of Gallatin Recorder’s Office

• Address: 132 W. Main St., Room 111, Gallatin, TN 37066
• Phone: 615-451-5895
• Hours listed by the city: Monday through Friday, 7:30 a.m. to 4:30 p.m.
• Use it for: City business-license applications and related city permits.

Sumner County Planning and Zoning

• Address: 355 N. Belvedere Drive, Room 202, Gallatin, TN 37066
• Phone: 615-451-6097
• Use it for: Unincorporated county zoning, the Minor Home-Based Business Application and major-business special-exception questions.

Tennessee Department of Revenue

Use the department’s business-tax and sales-tax resources for state registration, filing and tax questions. The business-tax license rules are summarized in the department’s BUS-13 and BUS-2 guidance..

Common mistakes to avoid

• Assuming a Gallatin mailing address means city zoning applies;
• Applying for a business license before confirming zoning compliance;
• Treating an online business as exempt from local licensing;
• Parking business vehicles in a prohibited front-yard area;
• Creating customer traffic that exceeds the applicable limit;
• Storing business equipment or inventory outdoors;
• Installing a sign without checking the city or county sign rule; and
• Assuming a zoning approval replaces health, fire, building, professional or state tax requirements.

For a property-specific answer, prepare a short description of the business, the address, expected customer traffic, employee count, vehicles, equipment and storage plans before contacting the appropriate planning office.