Legal Home Business Advice

Having a legal home based business is an exciting way to make a living because it gives you the maximum amount of control over your future and time.

Although many people think working from home is simpler and easier than running a business outside the home, this is usually not the case. Also, people who leave a career to work from home usually put in longer hours with their new home business than they did with their previous job.

As with any other businesses there are certain regulations with a legal home business that you must pay attention to if you are to succeed and want to minimize potential problems.

The following is a checklist you should check on about your home based business to make sure you keep it legal.

1. City, county and state permits that apply to your business. Check with your city, county and state offices to make sure what permits or licenses (if any) you will need for your business. Before you continue any further with your business make sure you can legally run it from home.
   
   
2. You may be restricted on the number of clients, students, or children you can have on your premises at anyone time. Make sure you know the restrictions for this as well as any parking requirements for you customers. Your county and city offices should be able to provide you with this information.
   
   
3. Check on the use of signs as they are almost always restricted in residential areas for a legal home business.
   
   
4. Do a thorough check with your city and county for any pending or future plans that may affect your home business.
   
   
5. Check with your insurance company to make sure you are covered for not only business equipment but far more important liability should someone get injured on your property. Usually you will need to take out a separate policy for the business. Your insurance agent will be able advise you on this.
   
   
6. With certain types of home businesses you may be required to get your home inspected and fix any problems or update certain areas to accommodate your business. Check with your city and county inspectors for legal requirements.
   
   
7. If you are selling a taxable product or service you will need to collect sales tax which usually means getting a sales and use tax number in many states. Call your state office and ask if the business you are in will require you to collect sales tax.
   
   
8. There are many types of business entities with various tax benefits and consequences. Talk with a good CPA to make sure you have the best legal business structure for your legal home business. The CPA will also explain to you the tax benefits and help you set up a good bookkeeping system.

While these are just some of the legal home business matters you will deal with along the way, there are others you will have to address. How you handle and solve future issues is up to you since you are the owner of your own business.

Just remember, when you need business or tax advice, get it from a good CPA. When you need legal advice, consult with a licensed attorney. Good professional advice is worth every penny.