Los Gatos Weekly-Times

Photograph by Lea Tauriello

Jim Hilsabeck, at his home office, wearing one of the T-shirts he designed and now sells by advertising on the Internet.

Los Gatos residents like to stay at home and work

Home businesses need permits, officials warn

By Lain Ehmann

Drawn by the convenience and efficiency, several residents apply for and receive permits to operate home-based businesses in Los Gatos each week. One such person is Jim Hilsabeck.

"Working from home is the perfect setup. It's immediate and convenient," says Hilsabeck. A full-time marketing employee for Cisco Systems, Hilsabeck applied to the town in July to start a home-based business selling "Cube Rat" T-shirts over the Internet. "I'm working on it in my spare time, hoping it'll take off," he says.

Obtaining the necessary town approvals--a home occupations permit and a business license--was easy.

"One stop and it was done," Hilsabeck says.

Despite the ease of the permitting process, an unestimated number of residents run businesses from their homes with no business license or home occupations permit. That's illegal.

"Everyone who owns a business located in town, or comes into town to do business, needs a business license whether or not the business is out of their home," says account technician Sherri Boyd.

Planning Department technician and code compliance officer Ryan Bane says the town has no way of determining how many residents run unlicensed home-based businesses or home businesses without occupations permits.

"We know they're out there," Bane says.

According to Bane, the purpose of the home occupations permitting process is to preserve the residential character of non-business areas in town.

While the home occupations ordinance does not restrict home-based businesses on the basis of zone or business type, it does set certain requirements. For instance, home businesses can have no employees other than the members of the resident family.

"Also, they can have only one customer at a time, and can't use signs to advertise," adds Bane. The ordinance places restrictions on delivery of materials to and from the home, parking, traffic, and emission of noise, dust, smoke and odors.

Certain businesses, such as arts and crafts, freelance writing, graphic design and consulting, are better suited for home-based offices because of the restrictions on customers, employees and parking. Marketing consultant Henry Miller, who has run his full-time business communications consultancy, H.F. Miller & Associates, from his Los Gatos home for three years, says regulations have not posed a problem for his business. "When I'm not in front of the computer, I'm out visiting clients at their office," Miller says. "There is virtually no need for anyone to come to my office."

Home business operators must receive a home occupations permit before being granted a business license, but approval for a home occupations permit can be done at the counter while the applicant waits.

Residents can apply for home occupations permits at the Town of Los Gatos Planning Department at 110 E. Main St., from 8 a.m. to noon, Monday through Friday. A one-time fee of $98.80 is charged for the permit and filing. The Planning Department can be reached at 354-6872.

Business licenses can be obtained from the Town of Los Gatos Finance Department at 110 E. Main Street, from 8 a.m. to 5 p.m., Monday through Friday. Home occupation business license fees start at $20 per calendar year, depending on the type of business and the business' annual revenue. Business licenses must be renewed annually. Residents can direct questions about business licenses to Diane Robero, Finance Department administrative analyst, at 354-6831.