Zoning regulations, permit requirements, and restrictions for running a business from your home in McKinney, TX.
Selling Homemade Food in Texas (Cottage Food Law)
If your home business involves selling food, Texas's cottage food law sets separate, statewide rules that apply on top of Texas's local zoning. Here is the verified current picture:
| Annual sales limit | $150,000/yr in gross cottage food sales, indexed for inflation (raised from $50,000 by SB 541, effective September 2025). |
| Permit / registration | Not required |
| Where you can sell | Direct and some indirect/retail sales |
| Labeling required | Yes |
Texas expanded its cottage food law with SB 541 in 2025, tripling the cap to $150,000 and broadening allowed sales. No permit is required, but a food handler course is.
Source: dshs.texas.gov
· Verified 2026-08-25
Frequently Asked Questions
Do I need a permit to run a business from home in McKinney, TX?
Yes, McKinney requires a home occupation permit. Contact your local planning/zoning department to apply.
Can I have employees work at my home business in McKinney?
McKinney allows up to 1 non-resident employee(s) for home-based businesses. Additional restrictions may apply.
What types of businesses can I run from home in McKinney, TX?
Most business types are allowed as home occupations in McKinney, with specific exceptions including: Auto repair or body work, Medical or dental offices with walk-in patients, Restaurants or food service with on-site dining, Retail sales with customer foot traffic, Welding or machining, Animal hospitals or kennels. The business must remain secondary to the residential use of the property.
Can I put a sign for my home business in McKinney?
No, McKinney does not permit exterior signage for home-based businesses.