November 30, 2007, Newsletter Issue #75: It seems that everyone is opting to work from home. Can I operate a small business from home?

Tip of the Week

Because of various zoning laws across the country, it is highly advisable for you to do your “homework” and investigate all aspects of running a small business from your home.

The nature of your small business may dictate whether or not it is feasible to operate a small business from home. Also, whether or not you have employees and business visitors will need to be factored into this decision due to zoning restrictions.

It is always better to investigate thoroughly before deciding operate a small business from home. Obviously some zoning ordinances will prohibit running a small business such as a law office or beauty salon or dentistry office from home because of the parking issues and hours of operation.

However, things such as a soft-ware development company or non-inventory sales type of business may be considered within the realm of permissible in your neighborhood.

Some communities will allow home-based small businesses but will require you to:

* specify the type of business that you will be operating
* limit the amount of space that you can use for your small business * restrict the parking on your street
* restrict the hours of operation
* prohibit or limit the number of employees that you may hire
* ban any advertising outside your home
* require a separate entrance into the business from your actual residence

Because of the complexities of operating a small business, especially one that is home-based, it is always advisable to consult with a business attorney that can point you in the right direction and get your new small business started off on the right foot with not only your local government, but your neighbors as well.

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