I do it a lot, and require no special permission, and yep more than six would require a fused main disco. In some areas special permission may be required. So I say #2 is a viable answer.

Quote
230.46 Spliced Conductors.
Service-entrance conductors shall be permitted to be spliced or tapped in accordance with 110.14, 300.5(E), 300.13, and 300.15.
Splices are permitted in service-entrance conductors if the splice meets the requirements of 230.46. Splices must be in an enclosure or be direct buried using a listed underground splice kit. It is common to have an underground service lateral terminate at a terminal box either inside or outside the building. At this point, service conductors may be spliced or run directly to the service equipment.
Splices are permitted where, for example, the cable enters a terminal box and a different wiring method, such as conduit, continues to the service equipment. Splices are most common where metering equipment is located on the line side of service equipment, service busways, and taps for supplying up to six disconnecting means.


Mark Heller
"Well - I oughta....." -Jackie Gleason