Legal Question in Business Law in Maryland

Great question! The answer really depends on where you live and the applicable zoning laws and community covenants. Generally, a home-based office where no production is taking place and without any employees is okay under zoning laws but each county has its own set of rules. Some counties (e.g., Anne Arundel) require something called a "Certificate of Use" (different than a certificate of occupancy) to confirm that the specific type of business can operate in the particular zoning category.

Communities may have restrictive covenants that also impact what kinds of businesses a home owner in that subdivision can operate. A prudent owner should check the restrictions that go with the property before operating a business out of their home. The deed may either spell out restrictions or simply reference that it is subject to "restrictions and covenants of record," in which case one can go to Land Records to get a copy of any covenants on file.

Somewhat relatedly, the IRS has rules for taking a tax deduction when a business owner uses part of their home for their business. Any business owner should exercise caution and consult with the applicable regulations before attempting to take a tax deduction for a home based business.