What You Need to Consider When Starting a Home Based Business

If you are starting a home based business there are a variety of things to take into account. Will you incorporate? Do you need clearance from your local government to do business out of your home? How are you going to manage the paperwork and the accounting? Are there any legal issues to be dealt with? Do you need to be OSHA compliant? Do you need a license – as you would for many child care businesses? Have you arranged sufficient funding to see you through your first months and years of business?All these concerns have bearing when you are starting a home based business. The shift from home being a shelter, to home being a place of commerce is bigger than it looks. The options can be extremely variable, depending on the type of work you are doing, the scale on which you are doing it, and the laws of your region.Even the choice of neighborhood can alter certain answers: some homeowners associations are structured to forbid home based business. While in many cases such rules can be navigated to the satisfaction of all involved, in others the entire question of starting a home based business becomes a nightmare of red tape and legal rulings.The first thing to consider for your home based business is whether your work is going to place demands on your neighborhood. Increased traffic, construction sounds, appealing but dangerous aspects of the work that can lure in small children and alterations to the appearance of your home matter, and increase the likelihood that you will need clearance to operate.Incorporation can also automatically include a requirement to inform and gain consent as you transform yourself from a simple civilian to a corporate identity. If you are starting a home business that involves any overt changes in the neighborhood you must be prepared to explore the legal complications involved.If you are considering a home business dealing with children, or livestock, be particularly aware of the many similar regulations controlling these two very different businesses. Hygiene, oversight, health regulations all come into play, as do child protection and animal protection services.Zoning and licensing issues can become crucial for any home business that deals primarily with any kind of living creature as a major aspect of day to day care and maintenance.Low impact businesses may entail similar issues, but usually on a much lower level. Starting a home business in typing, or computer consulting will still present you with due diligence issues, but seldom involves the degree of legal regulation involved in more physically involved endeavors.Even then, you will need to consider basic business concerns. How are you funding your start up? Do you intend to proceed as an incorporated entity, or as an individual freelancer? The tax laws alone differ, and depending on the amount of money made and the terms you will need to make a choice at some point what basis you will proceed from.If you are planning on shifting from full time employment to self employment, be sure to make a business plan and have it reviewed by a business consultant. This document will be your road map for the short and long term goals.The lure of starting a home based business is real and valid. If you choose well, work hard, promote yourself appropriately, and have even a bit of luck, your new business opportunity can provide you with income and independence for a lifetime.Make it a great dayDarrell Lischka

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