| Zoning laws may be determined by your city or your | | | | you could be facing stiff fines.(u)(b)Legal issues |
| county, and you should familiarize yourself with these | | | | affecting home-based businesses(/u)(/b)The first thing |
| laws so you will be able deal with any issues that may | | | | you must do is establish a business entity for your |
| arise. First, you need to determine if your home-based | | | | new venture. You need to take this vital step for your |
| business will have employees or walk-up trade. If not, | | | | business to protect yourself from liability issues. You |
| the zoning questions may never arise. Home-based | | | | will also need to apply for a business license before |
| businesses that deal with the public or have | | | | you start selling anything if your state requires one. If |
| non-family-member employees that work out of their | | | | your state does not require a license, you may be |
| home are more likely to have issues with with zoning | | | | required to have a reseller's certificate. Research your |
| laws. Before you start your business, get a copy of | | | | state's business laws and get the proper license or |
| your local ordinances from your city or county clerk's | | | | certification.Many home-based business overlook their |
| office, the city attorney's office, or your public | | | | need for insurance. Unless you are covered already, |
| library.Usually the problems arise when neighbors | | | | you will need to provide your own health, dental, and |
| complain, and the zoning boards are required to deal | | | | life insurance. You will also need liability and business |
| with the complaints. If employees and customers are | | | | property insurance to protect your business and its |
| going in and out of your home, making noise, or parking | | | | assets if an accident or other unexpected event |
| by the neighbors' homes, your neighbors will probably | | | | affects your business. If you have employees working |
| bring this to the attention of the zoning commission. | | | | in your home-based business, you must consider |
| Also, your hours of operation may also be an issue if | | | | whether you will provide health insurance for them. |
| you are open early in the morning or late at night and | | | | Also, research the OSHA standards to determine if |
| you disturb your neighbors. If your biggest problem is | | | | your home-based business is subject to them.Tax |
| your neighbors, try talking to them about your business | | | | laws that govern your home-based businessYour tax |
| ahead of time to help allay their fears. If you meet with | | | | situation will change when you start your home-based |
| resistance from neighbors, you may be able to | | | | business. Because new tax laws are passed every |
| negotiate a resolution.The amount of space your | | | | year, you need to hire a good accountant to be sure |
| business is uses in your home usually cannot be | | | | you are compliant. Even if you have done your own |
| greater than the actual living area. This is called "space | | | | taxes for years, owning a business means that you |
| percentage," and it can lead to a zoning issue. Also, the | | | | will need different tax forms and schedules. It is well |
| type of merchandise you are selling may also be | | | | worth the cost of a good accountant to be sure that |
| restricted in a residential area if you are using | | | | your deductions are viable and that you are paying the |
| chemicals or other items that have an unpleasant odor. | | | | correct amount of tax.State taxes regarding |
| Most zoning laws allow a nonpolluting home | | | | deductions, income tax, and sales tax vary from state |
| businesses, as long as any home containing a business | | | | to state. Contact your state's tax office for specific |
| is used primarily as a residence and the business | | | | information about how taxes are calculated and |
| activities don't negatively affect neighbors.You may | | | | collected in your state. The Internal Revenue Service |
| also be in breach of zoning laws if you post a sign for | | | | can be researched on-line at to learn about the tax |
| your business in your yard, and you should read up on | | | | laws you will be facing. The IRS Web site provides |
| signage laws in your area before you post a sign. You | | | | comprehensive information for small businesses and |
| may be able to find other business owners in the area | | | | also lists a toll-free number if you need more help. |
| who have similar zoning issues, and you can organize | | | | Spend some time at the IRS Web site until you feel |
| a local business campaign to try to change your zoning | | | | comfortable with the new.You can also get good |
| laws to make them more favorable to home-based | | | | information from the Small Business Association site |
| businesses.In many cities and counties, if a planning or | | | | on tax laws and other business issues. Another good |
| zoning board rejects your business, you can appeal or | | | | resource is Nolo Press that sells books, e-books, and |
| request a variance from the city council or county | | | | guides specifically about small business tax issues. |
| board of supervisors. You are more likely to suceed if | | | | Their Web site also offers free information. If you plan |
| you have the support of all affected neighbors and | | | | to hire employees, you need to be aware of |
| other businesses in the area. Because of the | | | | employment taxes and other issues that face |
| prevalance of home-based businesses, some | | | | business owners. You will need to set up a system for |
| communities are working to amend ordinances that | | | | federal withholding tax, state tax, and other |
| prohibit home-based businesses entirely to allow | | | | employment taxes, and you need to report and pay |
| "traditional home-based businesses" that are | | | | the taxes withheld to the appropriate government |
| unobtrusive.In an effort to protect residential property | | | | agency.Jo Ann Joy, Esq., MBA, CEO |
| values, most subdivisions, condos and planned-unit | | | | The future of your business starts here!You may |
| developments create special rules called Covenants, | | | | contact Jo Ann by phone at (602) 663-7007, by fax at |
| Conditions and Restrictions (CC&Rs) that govern | | | | (602) 324-7582, by email at joannjoy@Indigo Business |
| many aspects of property use. When you purchased | | | | Solutions.net, and by mail at 2313 East Ocotillo Rd., |
| your home, you received a copy of the CC&Rs, and | | | | Phoenix, AZ 85016. I have many published articles, and I |
| you should read them carefully to be sure that you are | | | | will send any article to you free of charge. Most |
| allowed to operate a business in your home. Rules | | | | consultations are free.For information about other |
| pertaining to home-based businesses are often | | | | important legal, tax, and business topics, free copies of |
| significantly stricter than those found in city ordinances | | | | articles, or EBooks, please visit our website at u> |
| and they are more zealously enforced. If you violate | | | | Copyright 2006. All rights reserved. Indigo Business |
| these homeowner's restrictions, the homeowner's | | | | Solutions is a registered trade name.Discover the |
| association or property management company could | | | | secrets to success and grow! |
| obtain an injunction to stop the business activities, and | | | | |