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Guides · Madison, Wisconsin

Running a home-based business in Madison, Wisconsin

Yes. The Madison General Ordinances list a home occupation in the residential districts as permitted or conditional, depending on the requirements in Section 28.151 (Madison General Ordinances § 28.032). The business must be run inside the dwelling, take up no more than 25% of the floor area of one story, and employ only family members or other occupants. The only exterior sign is a non-illuminated nameplate of 2 square feet or less (Madison General Ordinances § 28.151, Home Occupation). On-site wholesaling, manufacturing and assembly are out. Several limits can be relaxed only if the Plan Commission authorizes a conditional use. The sections Corpus carries don't mention a separate home occupation permit.

Last checked 2026-11-01. General information, not legal or tax advice.

What the city code allows at home

Madison defines a home occupation as an office or studio, service business or limited production of goods within a dwelling unit by a resident, limited in extent and incidental and secondary to residential use (Madison General Ordinances § 28.211). Live/work units, family day care and tourist rooming houses have separate rules in § 28.151, so confirm the use classification before applying this home occupation checklist. The standards are in Section 28.151, Home Occupation:

  • The mixed-use, employment and downtown use tables also list home occupation (Madison General Ordinances § 28.061, § 28.082 and § 28.072).
  • The occupation is conducted within a dwelling, not an accessory building, unless the Plan Commission authorizes it as a conditional use (Madison General Ordinances § 28.151, Home Occupation, par. (a)).
  • Only members of the immediate family residing on the premises or occupants of the dwelling may be employed, unless the Plan Commission authorizes otherwise as a conditional use (§ 28.151, par. (c)).
  • It may include small offices, service establishments or homecrafts (§ 28.151, par. (d)).
  • No mechanical equipment may be used except what is used for purely domestic or household purposes, unless authorized as a conditional use (§ 28.151, par. (f)).
  • No products may be kept or commodities sold other than those made on the premises, unless authorized as a conditional use. Samples may be kept but not sold on the premises (§ 28.151, pars. (g) and (h)).
  • No more than 25% of the floor area of one story of the dwelling may be devoted to the occupation, and its entrance must be from within the building (§ 28.151, pars. (i) and (j)).
  • No structural alterations or enlargements may be made for the primary purpose of the home occupation (§ 28.151, par. (k)).
  • The only exterior indication is a non-illuminated nameplate of no more than 2 square feet (§ 28.151, par. (l)). In a single-family or 2-unit building in the districts § 31.14 covers, the sign rules allow one identification sign per dwelling unit (two on a corner or through lot, one per street frontage), wall-mounted only, exempt from permit, and no higher than one story or 12 feet above curb level, whichever is lower (Madison General Ordinances § 31.14(3)(a)1, 4).
  • An individual who is incapable of employment outside the home because of a significant disability, as verified by a signed physician statement, is exempt from pars. (g) through (k) (§ 28.151, par. (m)).

What you can't run from home

A home occupation may not involve on-site wholesaling, manufacturing or assembly, a limousine, towing or cartage business, or auto service or repair for vehicles other than those registered to residents of the property (Madison General Ordinances § 28.151, Home Occupation, par. (e)).

Licenses, permits and city taxes

  • Zoning approval. Where the rules above say conditional use, the Plan Commission must authorize it. The text Corpus carries doesn't describe a separate home occupation permit, so ask the city's zoning office before you start.
  • License term. Licenses under Madison ordinances are annual and expire on June 30 after issuance unless an ordinance says otherwise (Madison General Ordinances § 9.02).
  • Secondhand goods. Licensing depends on the defined articles and exemptions in Madison General Ordinances § 9.24(2), (3). Annual fees are $550 for article dealers ($500 for bicycle dealers), $2,000 for jewelry dealers and $2,250 for precious-metal dealers (§ 9.24(4)(b)). Covered dealers also face identification and reporting duties (§ 9.24(7)). Article dealers generally must hold articles for 10 days, subject to exceptions and special rules (§ 9.24(7)(l)). Confirm your category before trading. The limit on keeping products above still applies.
  • Temporary sales. Check Madison General Ordinances § 9.17(2), (3) for the transient-merchant definition and exemptions, including Council-authorized special events. Nonexempt transient merchants must register, pay a non-refundable $100 fee, and follow disclosure and cancellation-notice rules. Registration lasts one year from entry (§ 9.17(4)(d), (7)).
  • Trades. Madison General Ordinances § 18.06 and § 19.08 generally require Wisconsin credentials, but exempt defined plumbing repairs and stoppages and specified electrical work. Electrical contracting has a separate business-credential requirement and, unless exempt, non-master electrical work requires master-electrician responsibility (§ 19.08(1) to (4)).

Putting the business in an LLC

An LLC is formed with the state, not the city, so forming one doesn't take the place of any city license or permit above. The transient merchant rule names limited liability companies alongside individuals, partnerships and corporations (Madison General Ordinances § 9.17(2)).

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Read the code

Madison's code on Corpus has the home occupation standards in Section 28.151, the use tables at Sections 28.032 to 28.082, the sign rules in Section 31.14, and the license chapter, Chapter 9.

Other cities

More in Wisconsin: Milwaukee

Home business rules in all 96 cities we cover, each linked to the city’s own code.

Sources

Last checked 2026-11-01. Corpus is not a law firm and does not provide legal or tax advice.