Your Home Based Business Could be Restricted by Legal Requirements

A Home Business Article Contributed by Donna m. Brown

Legal Requirements to Consider before Launching Your Home Based Business

Before you launch your home based business, make sure your legal bases are covered. Local, state and federal regulations could restrict the way you conduct business you're your home (and whether or not you will be allowed to). And old cliché is called for here, "Ignorance of the law is no excuse." You as a home based business owner are responsible to research the regulations and bring your business into compliance with them.

Do Your Home Based Business Homework

Name registration: Suppose you have picked out the perfect name for your home based business. You have your business cards printed, flyers designed and copied, statements printed and marketing gadgets emblazoned with your name and contact information. How much will you have invested when the state in which you live notifies you that somebody else has already officially registered that business name? At that time you will be ordered to stop all reference to your business by the previously registered name of somebody else's business hundreds of miles away.

Different states have different registration processes for business names. Call your state department of commerce, or do some research on the Internet to find out how to secure your name and protect it from use by others.

Business license: Don't attempt to operate a home based business without purchasing a business license from the appropriate entity. You may be required to purchase a business license from any one of a number of levels of government. This gives administrators an opportunity to review your business plans and make sure you have complied with all of the codes in place. You might be required to pay for your license, but the cost will be much less than that of shutting your business down due to non-compliance issues.

Zoning: Check zoning ordinances for your area. If you operate a business in a restricted area without meeting all of the legal requirements, you could face big fines or even immediate closure.

Products and Services: Make sure the products and services that you plan to offer are in line with the ordinances of your community. Some cities do not allow storage of certain chemicals, production processes or high-traffic producing business ventures in residential areas. Before you stock up on supplies, find out what you can and cannot store and do as a home based business owner.

Parking: If you need parking for your home based business, you might want to consider seeking a location in a commercial, rather than a residential location. People get nervous when residential areas become crowded with traffic and strangers. It's a liability issue for you and a safety issue for the entire neighborhood.

Registration and Accounting: Ask your accountant and an attorney for a list of basis you should cover. You may need a federal employer number, a sales tax number, a business telephone and a business bank account. There are a number of entities that want a piece of any business pie and they are not likely to overlook your business. You could face serious fines for failing to carefully research these regulations. Contact the Small Business Administration and the Internal Revenue Service for details about how you can get your home based business off to the best start.

Focus on Operating Your Home Based Business, Not Looking over Your Shoulder

As long as you make a valiant attempt to comply with all of the rules and regulations outlined for your area, you will be doing your part to assure order for the world of commerce and peace of mind for you!