Home Based Business
Operating a home business may be appealing for the following reasons:
- opportunity to be your own boss
- lower overheads
- flexibility and a sense of freedom
- family
- job satisfaction
- cost efficient
- health
- lifestyle
- increase income
- redundancy or retirement
- convenience
Choosing a home business must be approached carefully. Ask yourself:
- Does my home have the space for a business?
- Can I identify and describe the business I want to establish?
- Can I identify my business product or service?
- Is there a demand for that product or service?
- Can I successfully run the business from home?
A home-based business is subject to many of the same laws and regulations affecting other businesses.
Some general areas include:
- Zoning regulations. If your business operates in violation of them, you could be fined or shut down.
- Product restrictions. Certain products cannot be produced in the home. Most states outlaw home production of fireworks, drugs, poisons, explosives, sanitary or medical products and toys. Some states also prohibit home-based businesses from making food, drink or clothing.
Be sure to consult an attorney and your local, city and state departments of labor to find out which laws and regulations will affect your business. Additionally, check on registration and accounting requirements needed to open your home-based business.
You may need a work certificate or license from the state. Your business name may need to be registered with the state. A separate business telephone and bank account are good business practices.
Also remember, if you have employees you are responsible for withholding income and social-security taxes, and for complying with minimum wage and employee health and safety laws.
If you’re convinced that working from home is for you, it’s time to create your business plan. The SBA and its resource partners, such as SCORE, SBDCs and WBCs can help make the process easier.
