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Startup Rules
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Article 1: Be Legal
Before hanging out your Open For Business sign, determine whether you can legally conduct business out of a residence.
Many localities were late recognizing the burgeoning growth of home-based businesses. Some jurisdictions still greatly restrict, if not outright prohibit, running a business out of the home. It’s up to you to determine whether you may do what you intend to do without running afoul of the law.
Banning commercial activities in homes was based on the idea that business and residential uses are incompatible. Crowds of customers, parking demands, heavy delivery trucks and other intensive conditions associated with conventional businesses rightly were viewed as disruptive to residential neighborhoods.
But as more inventive entrepreneurs found non-intrusive means of conducting businesses from home, many municipalities began to accommodate reasonable uses. The rub is that what is reasonable and accommodated may vary greatly from one jurisdiction to another.
Tip: Find out upfront if your business conforms to local codes. Don’t wait for the zoning board to say you are noncompliant, or for a neighbor to complain to City Hall.
Find out all of this at your local jurisdiction – City Hall or the county or parish if you live in an unincorporated community. Business license and zoning departments can tell you whether your type of business is permitted and what conditions apply, if any.
Once your home-based business gets the green light, your next step is to acquire whatever licenses may be required. Again check with your city or county seat.
Some jurisdictions don’t require business licenses at all. Others require them only for certain types of businesses. Some jurisdictions require licenses for conducting business within their boundaries, while others only if your business is physically located within their boundaries. It’s up to you to know what you need. And you can know simply by asking.
Typically, there are nominal fees for business licenses, although the exact amount may be geared to the size or gross revenue of your business. Nevertheless, don’t be pennywise and pound-foolish. Pay the fee upfront and avoid potential complications like penalties and fines later.
Note: Homeowner associations can be more restrictive and bureaucratic than governments. Be sure your business complies with your association’s rules.
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