Are There Laws For Running A Homebased
Business? October
2001
By Bob Brolhorst
The answer is no,
but there are some
things that you need
to know before
you get started.
1) Check with the
city in which you
will be starting
your business. If
your
business will be
home-based, you may
not need a license,
but only a permit
or a home occupation
permit. In some
cities, you don't
even need a permit.
2) Then check
with your county, as
the county
requirements
generally over rule
that of the city.
3) Finally check
with your state. If
you hire anyone or
give yourself a
paycheck,
you need a Federal
Employer ID number
(FEIN).
4) Always start
with the zoning
department. If you
live in a
residential area,
a home-based
business may not
even be allowed, or
only certain types
of
home-based
businesses may be
allowed.
5) Ask the
experts by making a
few phone calls.
Don't rely on
answers from
others in your area
who have businesses.
Ignorance of the law
doesn't hold up
in court. And the
fines can be pretty
large.
6) Another piece
of advice, even if
your city doesn't
require a permit or
license,
your insurance
company may require
registration of some
sort before issuing
a
liability policy for
you. Liability
insurance is
something you can
not be without.
7) Obtain the
services of a good
attorney. They will
be able to advise
you on
such issues as
whether to
incorporate or not,
or whether being a
sole proprietor
would be better.
Also you may need to
have legal contracts
drawn up so keep a
lawyer on retainer,
it will be money
well spent.
8) Trademarks for
your business may
also be necessary,
but this is
something
that your attorney
can help you with.
Bob Brolhorst
Wave 5 Marketing
bbrolhorst@wave5marketing.com
http://www.wave5marketing.com