A home business is a business that is managed and operated mostly from the owner’s home residence. In such situations, a section of the home is usually designated as the principle location for the business operations and decisions to occur. This is usually a room or a section of the home that has been converted into a business office.

There are many laws and local ordinances that govern home-based businesses. This is to prevent various conflicts and issues such as noise violations; parking and traffic congestion; health and safety issues; and preserving the overall "residential feel" of a neighborhood community.

What Are Some Advantages of Home-Based Businesses?

Home-based businesses may offer several advantages for persons seeking to engage in business operations. These may include:

  • Saving costs on business space and commercial real estate leases
  • Presents an ideal method for many small business start-up companies
  • In some cases, there may be a home office tax deduction available

Many smaller businesses begin as home-based operations, and then expand to a dedicated office space when operations increase in scope and size.

Are There Any Restrictions on Home-Based Businesses?

There are many restrictions on home-based businesses. Local zoning laws may restrict business activity in a residential area according to many factors, such as which sections of a home may be used. Also, some cities may issue a list of what types of professions can be maintained as a home-based business. You may need to check your local laws to determine what types of business activities are allowed.

Also, there may be private restrictions on home-based businesses, such as those associated with homeowner’s associations and deed/lease contract terms.

What Types of Permits and Licenses Are Needed to Operate a Home Business?

Like any business, a home-based business owner may need to obtain and secure various licenses, including general business licenses, industry or profession-specific licenses, and permits for commercial signs and other business-related activities. These are necessary to help the owner avoid liability for business violations and ordinance citations.

Do I Need a Lawyer for Help with a Home Based Business?

Running a home business can often provide many advantages for a business owner or operator. You may need to hire a business lawyer in your area if you need assistance or information regarding the home business laws in your county. Your attorney can help you secure the necessary permits and paperwork that are required for home business operations. Also, if you are facing any legal claims or conflicts regarding home business laws, your attorney can represent you in court and can help you file a lawsuit if needed.