WILLIE BEAMON
01-24-2006, 10:41 AM
LEGALITIES & TAX ADVANTAGES IN A HOME BUSINESS
Every year, several thousand people develop an interest in "going
into business." Many of these people have an idea, a product or a
service they hope to promote into an income producing business which
they can operate from their own homes.
If you are one of these people, here are some practical thoughts to
consider before hanging out the "Open-for-Business" sign.
In areas zoned "Residential Only," your proposed business could be
illegal. In many areas, zoning restrictions rule out home
businesses involving the coming and going of many customers, clients
or employees. Many businesses that sell or even store any thing for
sale on the premises also fall into this category.
Be sure to check with your local zoning office to see how the
ordinances in your particular area may affect your business plans.
You may need a special permit to operate your business from your
home; and you may find that making small changes in your plan will
put you into the position of meeting zoning standards.
Many communities grant home occupation permits for businesses that
involve typing, sewing and teaching, but turn thumbs down on
requests from photographers, interior decorators and
home-improve-ment businesses to be run from the home. And often,
even if you are permitted to use your home for a given business,
there will be restrictions that you may need to take into
consideration. By all means, work with your zoning people, and save
yourself time, trouble and dollars.
One of the requirements imposed might be off-street parking for your
customers or patrons. And, signs are generally forbidden in
residential districts. If you teach, there is almost always a limit
on the number of students you may have at any one time.
Obtaining zoning approval for your business, then, could be as
simple as filling out an application, or it could involve a public
hearing. The important points the zoning officials will consider
will center around how your business will affect the neighborhood.
Will it increase the traffic noticeably on your street? Will there
be a substantial in crease in noise? And how will your neighbors
feel about this business alongside their homes?
To repeat, check into the zoning restrictions, and then check again
to determine if you will need a city license. If you're selling
something, you may need a vendor's license, and be required to
collect sales taxes on your transactions. The sales tax requirement
would result in the need for careful record keeping.
Licensing can be an involved process, and depending upon the type of
business, it could even involve the inspection of your home to
determine if it meets with local health and building and fire codes.
Should this be the case, you will need to bring your facilities up
to the local standards. Usually this will involve some simple
repairs or adjustments that you can either do personally, or hire
out to a handyman at a nominal cost.
Every year, several thousand people develop an interest in "going
into business." Many of these people have an idea, a product or a
service they hope to promote into an income producing business which
they can operate from their own homes.
If you are one of these people, here are some practical thoughts to
consider before hanging out the "Open-for-Business" sign.
In areas zoned "Residential Only," your proposed business could be
illegal. In many areas, zoning restrictions rule out home
businesses involving the coming and going of many customers, clients
or employees. Many businesses that sell or even store any thing for
sale on the premises also fall into this category.
Be sure to check with your local zoning office to see how the
ordinances in your particular area may affect your business plans.
You may need a special permit to operate your business from your
home; and you may find that making small changes in your plan will
put you into the position of meeting zoning standards.
Many communities grant home occupation permits for businesses that
involve typing, sewing and teaching, but turn thumbs down on
requests from photographers, interior decorators and
home-improve-ment businesses to be run from the home. And often,
even if you are permitted to use your home for a given business,
there will be restrictions that you may need to take into
consideration. By all means, work with your zoning people, and save
yourself time, trouble and dollars.
One of the requirements imposed might be off-street parking for your
customers or patrons. And, signs are generally forbidden in
residential districts. If you teach, there is almost always a limit
on the number of students you may have at any one time.
Obtaining zoning approval for your business, then, could be as
simple as filling out an application, or it could involve a public
hearing. The important points the zoning officials will consider
will center around how your business will affect the neighborhood.
Will it increase the traffic noticeably on your street? Will there
be a substantial in crease in noise? And how will your neighbors
feel about this business alongside their homes?
To repeat, check into the zoning restrictions, and then check again
to determine if you will need a city license. If you're selling
something, you may need a vendor's license, and be required to
collect sales taxes on your transactions. The sales tax requirement
would result in the need for careful record keeping.
Licensing can be an involved process, and depending upon the type of
business, it could even involve the inspection of your home to
determine if it meets with local health and building and fire codes.
Should this be the case, you will need to bring your facilities up
to the local standards. Usually this will involve some simple
repairs or adjustments that you can either do personally, or hire
out to a handyman at a nominal cost.