Can You Run a Business From Home? The Legal Facts You Need to Know


Sixty-nine percent of entrepreneurs in the United States start their businesses at home, according to a study by Small Business Trends. If you have a great idea and want to create your own small business, you have probably considered the benefits of using your home.

Of course, starting a business requires researching all of the different legal processes involved, even if it’s going to be in your home. So, can you run a business from home? The answer may not be as simple as you had hoped, but it is possible to do. Keep reading to learn how you can run your own business out of your home.

Consider Zoning Laws

Zoning laws and town bylaws are the first things to consider when running a business from home legally. Some neighborhoods make it illegal for businesses to be run there, no matter what type of business you have.

However, others may hold a town hall for your neighbors to vote if they would like to allow your business to be in the neighborhood. Consider the amount of traffic you’ll be bringing in, the parking spaces, noise, and trash.

If your town does refuse to let your business run, you can apply for a variance that would allow you to operate in the neighborhood. This may require that you accept certain changes, such as no traffic after 8 pm, or no shipments on certain days. Some variances can be hard to obtain, but you should always apply to see what you could be granted.

Look Into Licenses

If you know you’re following all your zoning laws, licenses and permits are the next steps. You will need a general business license and a sales tax license, as all business owners do. A professional license is required for specific occupations, so you should research if you would be required to obtain that as well.

Health and safety permits are required if you’ll have customers in your house, but not if you will be only selling things online. You will need a sign permit to advertise your business, knowing that you’re following all guidelines.

Getting Started

After obtaining all the previous information, you’ll need a few more things to get started. If you have employees, you’ll need to learn how to pay them. A paycheck stub creator is your best bet, as they make it easy and take the work out of it for you.

You’ll need to make a budget and see what materials you’ll need first to start. You’ll also have to make sure you have the time and space to make running a business from home lucrative.

Can You Run a Business From Home?

After pondering this information, can you run a business from home? The short answer is: probably. Research your zoning laws and town bylaws before you start making too many plans.

Running a business from home legally may seem complex, but once you have it all figured out, you’ll be glad you took the time to do it right. Now, check out more of our articles for all of your lifestyle needs.


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