Business Law Advisor

[#1]

 

Starting a home-based business is a rewarding and flexible option for thousands of small business owners.  However, starting up is not as simple as hanging an “Open for Business” sign on the front door.  Understanding the required permits you’ll need to legally operate your business can save you from big head-aches (and big fines) down the road.

 

Regulations vary based on industry and location, and while there is no one-size-fits-all permit checklist for home-based businesses, there are general guidelines home-based business owners should be aware of:

1.  General Business Licenses

Most home-based businesses owners will be required to file an application for a general business permit from their city or county to legally operate in that area.  County registrations may apply to you if your home-based business is outside the jurisdiction of a town/city.

2.  Professional and Trade Licenses

Some industries may have to obtain professional/occupational licenses, such as a nursing certificate or a real estate license, at the state government level.  You can contact your state's business license office for a complete list of the occupations that require licensing in your area. 

3.  Home Occupation Permit

Many city and county zoning and planning agencies require all home-based businesses to get a Home Occupation Permit.  If a permit is not required in your city, the zoning office should tell if your neighborhood is zoned for the business activity you plan to conduct from your home. If your area is not zoned for your type of business, you may need to file for an additional variance or conditional-use permit. Visit the Zoning Laws for Home Based Businesses page for more information about zoning laws for home-based businesses.

4.  Sales Tax Permit

If your home-based business sells taxable goods or services, you may be required collect state and local sales taxes from your customers. If you sell your products in a state that charges a sales tax; or levies a gross receipts or excise tax on businesses you may have to apply for a tax permit or otherwise register with your state revenue agency. If you plan to run an online business, visit Collecting Sales Tax Over the Internet.

5.  Health and Safety Permits

Depending on your location and industry, you may need either a permit or inspections from your local fire department, especially if your business requires the use of flammable materials or assembling of people in one location (such as a child care service)

Air and water pollution by businesses are monitored in some communities. You can check with your state environmental protection agency to see if these regulations are applicable.

Health Department permits are typically issued by your county government, pending an inspection of the business premises, if you plan to sell food to the public or to other businesses.  Additional permits may be required for food-service or food-preparation depending on your state.

6.  Sign Permits

Some cities and town have sign ordinances in effect that restrict the type, size, or location of signs placed on your property.

7.  Construction Permits

Environmental and building permits may be required for construction.  It’s a good idea to check your local government’s building and planning department before undergoing any construction efforts.

8.  Tools and Resources

• The Licenses and Permits Tool on Business.gov allows you to get a listing of federal, state and local permits, licenses, and registrations you’ll need to run a business.
• Home-based business resources for starting up, financing, and marketing your business

Message Edited by NicoleD on 03-17-2009 09:48 AM

Message Edited by NicoleD on 03-17-2009 09:52 AM

[#2]

Curious here Nicole...are you here to encourage small business owners and entreprenuers, or too make sure all of us know what our duties and responsibilites to BIG BROTHER are?  Perhaps we could JUMP START our economy by passing a law that eliminates all this various and assorted licenses, permits and their FEES, but then that would DOWNSIZE GOVERNMENT now wouldn't it? Can't have that...after all, you and people like you are paid (on average) 40 percent more for your job duties than you would be paid if you were a moderator on a private non governmental web site.  There is a new idea for you...ONE PERMIT FITS ALL, a one stop shop for all your license needs. 

[#3]

One of the site’s goals is to save business owners time by providing a "one-stop shop" where they can easily find and navigate the information that will help them run their business -so they can focus on operations instead of figuring out how to comply with regulations.

And though we don't create policy, we do try to help small business owners understand all the regulations that will impact their business, including environmental regulations, labor laws, and yes, even permits and taxes.

[#4]

Nicole, 100% you are right! the most expensive that we have it is  time. Through this site, we will save our time! And here described all rules so as not to violate the law.

_________________

Custom essay writing

Message Edited by NicoleD on 08-27-2009 09:52 AM

[#5]

My business is run out of home, and I have several contractors that work from their own home - so this is a great resource. Thanks you guys.

Joel McLaughlin

Dataflurry search engine optimization

Message Edited by NicoleD on 08-27-2009 09:52 AM

[#6]

I think there's a lot more red tape than necessary just to run a business out of your own home. I'm currently registered as an LLC with New Jersey, but I need to go register for the home business permit now.

Omer A.

MMORPG and Game Music Site Owner

VG Alliance LLC (New Jersey)

Message Edited by NicoleD on 08-10-2009 09:50 AM

Message Edited by NicoleD on 08-27-2009 09:51 AM

[#7]

Thanks for your feedback - we're so glad that you find this helpful!

JoeGamer - you might want to check out this page http://business.gov/start/home-based/ for details on zoning laws and other home-based business resources

[#8]

This is a great resource for people to go when opening a business. I am currently operating online so I don't need most of those permits. - Josh the LOCKSMITH

Message Edited by NicoleD on 08-27-2009 09:51 AM

[#9]

Sign Permits can sometimes be the trickiest to optain - although that they are not too often reinforced (or at least in my town) - Jennifer of Financial Marketing.

Message Edited by NicoleD on 08-27-2009 09:49 AM

[#10]

It is interesting that although home based businesses need so much paper work but online businesses need so little. - Michael Pillsbury

Message Edited by NicoleD on 08-27-2009 09:51 AM

[#11]

Apotik -

Application costs and fees vary depending on the location of your business.   You can contact your state's business licensing office for details (scroll). 

[#12]

Let's make the lisencing requirements easy. Home businesses are not that strong to start with complicated lisencing, although they are more recession-proof than big businesses.
Financial Spread Betting

Message Edited by NicoleD on 08-27-2009 09:53 AM

[#13]

I believe the lisencing requirement should be made more simple. Home businesses are just too small to manage the complicated administration and high expense. Concrete Sealer

Message Edited by NicoleD on 09-01-2009 05:50 PM