Certificate of Use and Occupancy (COUO)

Welcome to the City of Laguna Hills

Thank you for choosing to establish your business in the City of Laguna Hills. The City is committed to fostering a vibrant local economy and is pleased to support new and existing businesses throughout the startup and permitting process.

Certificate of Use and Occupancy (COUO)

The City of Laguna Hills does not issue traditional business licenses. Instead, all businesses operating within the City are required to obtain a Certificate of Use and Occupancy (COUO) prior to commencing operations. The COUO process verifies that a business location complies with applicable zoning, building, fire safety, and accessibility standards, thereby ensuring that commercial activities are conducted safely and in accordance with City regulations.

When is a COUO Required?

A COUO is required under any of the following circumstances:

  • Establishing a new business
  • Changing ownership or business name
  • Relocating to a new commercial space
  • Renovating or modifying an existing commercial space

IMPORTANT: Verify Zoning Before Signing a Lease

Before signing a lease agreement, prospective business owners are strongly encouraged to contact the Planning Division to confirm that the proposed use is permitted at the intended location. Certain business types may be prohibited or may require additional discretionary approvals. Zoning verification is important to:

  • Ensure the proposed use is compatible with local zoning regulations
  • Help avoid costly delays, redesigns, or relocation
  • Facilitate a smoother permitting and opening process

For zoning inquiries, please contact the Planning Division at (949) 707-2600 or via email at planning@lagunahillsca.gov.

COUO Application Process

The application process for a Certificate of Use and Occupancy depends on whether tenant improvements (TIs) are proposed as part of the business setup. Please select the appropriate category below to view detailed instructions:

  1. OPTION 1: COUO Without Construction
  2. OPTION 2: COUO With Construction

COUO without Tenant Improvements (TI)

Use this option if your business is moving into an existing space with no modifications (such as no installation or removal walls or fixtures; no modification of plumbing, electrical, and/or mechanical systems, etc.)

Steps to Apply

  1. Check Zoning / Confirm Use
    Contact the Planning Department at planning@lagunahillsca.gov to confirm if your proposed business/use is allowed.  Please include the business type and location to help expedite the zoning confirmation process.
  2. Review Requirements & Prepare Plans
    Review the "Additional Compliance Requirements" section below (you’ll be asked about these in your application).
    Prepare a site and floor plan (view sample).
  3. Apply Online
    Submit your COUO application through the Self-Service Portal.
  4. Pay the Fee ($250.10)
    Inspection cannot be scheduled until the COUO fee is paid.
  5. Review State Notices
    Read all applicable State-Mandated Business Notices listed below.
  6. Schedule and Pass Inspection
    Be sure to request and schedule your inspection with the Building Division promptly—no later than 180 days from the date of payment. If not completed within this timeframe, your application will expire, and a new application must be submitted. The required Zoning and Building Inspection will verify code compliance. To help you prepare, please review the 'What to Expect During a Non-Construction COUO Inspection' section below.
  7. Receive Your COUO
    After passing final inspection, your Certificate of Use and Occupancy will be issued and emailed to you.

Timeline: 5–10 business days if no corrections are needed.