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Home Based Business

Why am I starting a home 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

Finding Your Niche

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?

Legal Requirements

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.  Contact the Town of Lakeview planning office if you're located in city limits 541.947.4957 and if you're outside city limits call the county planning office 541.947.6036.
  • 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. If you're working with food products you must be licensed with the Board of Health Department.

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.  For information about developing a Business Plan contact Klamath Community College Small Business Development Center at 541-205-5404 or visit their website at www.bizcenter.org/kcc