If you’re starting a home-based business, there are several important steps you’ll need to take before you’ll officially be ready to launch. A few of these steps include choosing a legal structure, understanding local zoning laws for home-based businesses, and finding or creating an office space for your business. Markets Herald shares some tips on launching your home-based business.
Your First Steps
As you get ready to start a business from home, you’ll first need to choose a legal structure and review local zoning laws for home-based businesses. Some cities and counties have zoning laws in place, and failing to comply with them could put you and your business at risk. For instance, your city or county of residence may prohibit you from placing a business sign in your yard — or you could run into issues if the size of your work area exceeds your living space (known as space percentage). Moreover, you’ll want to ensure that your home office space meets the requirements of the Internal Revenue Service (IRS).
In addition to these laws, you’ll need to choose a legal structure when forming a home-based business. A limited liability company (LLC) is one excellent option if you’re looking for tax advantages, flexibility in how profits are distributed between owners, a simple filing process, and protection from personal liability.
Find or Create the Perfect Office Space
After meeting the legal requirements of starting a home-based business in your city, county, and state, you’ll need to find or create an office space that can be used solely for your business. For most entrepreneurs, there are three ways to go about doing this. These include:
Buying a larger home. Buying a new house that’s large enough to meet your personal and professional needs is just one option to consider if you’re starting a business from home. In order to purchase a house that can be used for living and doing business, however, you’ll need to set your home buying budget, get preapproved for a mortgage, and connect with an expert real agent.
Building a home addition. If you have the time, budget, and patience to add to your existing home, you could build an office addition. An office addition increases your home’s square footage and gives you the opportunity to create a customized space for your home-based business. However, keep in mind that most home additions are costly, time-consuming projects.
Converting an existing space into an office. If you have a spare bedroom or another unused space that can be converted into a private home office, this will be the cheapest, quickest, and simplest option of the three. There are so many ways to personalize the space so that it feels fresh and new while helping you to stay productive and organized while working from home.
Revamp your furniture. If you’re meeting clients at your home office, add some new furniture and decor. Instead of purchasing new pieces, you can bring life to an older piece by having it reupholstered by a professional. Visit sites like Angi to find furniture upholsterers near you and read customer feedback. Costs will depend on the size of the piece, the fabric you’re using, and if you’re asking for any custom design options.
From meeting legal requirements to designing the ultimate office space, a great deal of time and energy goes into starting a home-based business — especially if you’ll be building an office addition or buying a larger home. But once you’ve chosen a legal structure, complied with any local rules and regulations, and designed the perfect office space for your business needs, you’ll be well on your way to enjoying the many advantages of running a business from home!