Do I Need a Certificate of Occupancy to Open My Business?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

A certificate of occupancy (CO) is local approval that a building or space is safe and allowed for a certain type of use. Many cities and counties require a new or updated one when a new business moves in, when the use changes (say, office to retail), or after construction. It usually involves building and fire inspections. Ask your local building department before you sign a lease or set an opening date.

What this means

The CO confirms the building department has approved the space for its use and that it passed required inspections. Rules vary a lot by city and county.

As one example, the City of Rogers, Minnesota, requires a CO when:

A new business enters a space, even without remodeling
The use or occupancy type changes, such as office to retail
A new business takes over, even if the use stays the same
A long-vacant space is reoccupied
A new tenant joins a multi-tenant building

That city also says a home-based business with customer visits may need review, and it does a joint walk-through with a building inspector and a fire inspector. Your city may handle it differently, so check.

Made-up example: Fresh Start Fitness leases a space that used to be a furniture store. The owner calls the building department and learns that changing from retail to fitness is a change of use. The space needs more exits and restroom updates before it can get a new CO. She pushes back her opening date and doesn’t set hours on her Google profile until she has the certificate.

Why it matters

You can’t open legally without it where one is required.
Insurance and lease problems. Insurers and landlords may ask for it.
Surprise construction costs. A change of use can trigger upgrades for exits, fire safety, restrooms, or accessibility.
Review damage. If you announce an opening and then can’t open, early customers notice.

Who this applies to

Most businesses moving into a commercial space should ask. It matters most if:

You’re a new tenant
The last business used the space differently
You’re doing any build-out or remodeling
The space sat empty for a long time
Customers will visit your home business

Service-area businesses with no customer-facing space may not need one, but check if you have a shop or warehouse.

How to do it

Call the building department before you sign. Describe the space and your use, and ask if a new CO is needed.
Ask what inspections apply and what usually holds people up.
Check zoning first (see 9.4.1 Zoning). A CO usually depends on the use being allowed.
Ask the landlord for the current CO and any open permits. Make clear in the lease who pays for required upgrades (see 9.4.4 Lease Permissions).
Apply and pay the fee.
Schedule inspections. Have fire extinguishers, exit signs, and other items ready (see 9.4.7 Fire Requirements).
Fix anything flagged and get re-inspected.
Get the certificate and post it if your city requires it.
Then publish your opening. Set your Google Business Profile hours and opening date only after you have approval (see 14.1.6 Hours).
Add it to your requirement matrix (see 9.3 Requirement Matrix).

What proof to keep

The certificate of occupancy
Inspection reports and sign-offs
Application and fee receipts
A dated email if the department said none was needed

Common mistakes

Assuming the last tenant’s CO covers you. In many places it doesn’t, especially if your use is different.
Signing a lease that puts all upgrade costs on you before you know what’s needed.
Setting opening hours on Google too early. Customers come, the door’s locked, and reviews follow.
Starting remodeling without permits, which can delay the CO.
Not asking about accessibility. A change of use or remodel can bring accessibility upgrades (see 9.7.1 Physical Accessibility).

When to get help from a pro

The building department is the first call. An architect or contractor if upgrades are needed. An attorney to review the lease. Ask:

Does our use require a new CO here?
What upgrades will the inspection likely require?
Who pays for those upgrades under this lease?

Bill’s note

[Bill: add a short lesson. For example, a client who announced an opening date on Google before getting final approval, or what you learned about timing a grand opening.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: whether SiteSmarty’s space needed a CO and what I found out]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: the CO or the “none required” email]
[Result so far:]

Questions people ask

What is a certificate of occupancy? Local approval that a space is safe and allowed for a certain type of use.

Do I need a new one as a new tenant? Often yes, especially if your use is different. Some cities require one for any new business. Ask your building department.

What inspections are part of it? Commonly building and fire inspections. Requirements vary by location.

How long does it take? It depends on your city and whether upgrades are needed. Ask the building department for typical timelines.

Who applies, me or the landlord? It varies. Settle it in the lease and confirm with the building department.

Audit check

Question: Does the business have a current certificate of occupancy for its use of the space, or written confirmation that none is required?
Pass looks like: CO on file that matches the current use. Inspections passed. Opening date and hours posted on Google only after approval.
Fail looks like: Operating under an old tenant’s CO with a different use. No check done. Hours posted before approval.
Evidence to collect: The CO, inspection reports, and the date hours were first posted on the Business Profile.

Where this fits

Do this first: 9.4.1 Zoning, 9.4.4 Lease Permissions

Do this next: 9.4.4 Lease Permissions

Sources

City of Rogers, Minnesota, "Business Certificate to Occupy Program" (example of local rules) (checked October 17, 2026)
Google Business Profile Help, "Guidelines for representing your business on Google" (checked October 17, 2026)
U.S. Small Business Administration, "Pick your business location" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.