It seems like more and more people are nowadays running a business from home.
Whether it's accounting services or bakery services, home businesses can be both successful and lucrative.
However, can you run a business from your home legally? And if so, how can you do that?
Can I Run A Business From My Home?
The answer to this is yes, and no.
You cannot run a business from your home when you have not registered your business or have acquired the appropriate license and authorization to do so.
Both federal and state legislatures across the advanced industrialized world place restrictions on the place and conditions under which a business can operate.
If your business does not meet these standards, something most home businesses do not, it is usually deemed illegal.
As a result, in this case, if you choose to run the business, you will be doing so illegally and will be prosecuted if caught.
On the other hand, if you acquire all the necessary permits and licenses you require for the type of business you want to run, then you can do it legally and with the necessary authorization.
Which Type Of License Will I Need For My Home Business?
There are 5 types of licenses available and, depending on the business you want to run and the place you want to run it in, you will need at least one of them.
General Business Licenses
General business licenses are required for all types of businesses, regardless of whether they are home-based or not.
They are required to conduct business within the regional municipalities, and you can find out more about them by contacting your area's tax office.
However, you also need to check to see if your business complies with existing zoning restrictions.
Check with the zoning division in your nation as several nearby local authorities might prohibit any home business activities when they do not meet community standards.
Professional federal or state licenses are essential for several types of home businesses, such as childcare facilities, home beauty salons, spas, solicitors, property investment advising, or accounting services.
These home-based businesses need these professional licenses to run, otherwise, they are not running legally.
Therefore, you need to go through the list of professions falling into the categories that require such a license and obtain one before you start running your business from home.
Health And Safety Licenses
Most people are aware of this type of license as it is the one most people are looking for as well when hiring a home business services.
If you are looking to run a home business and sell baked goods, homemade food, or even one where you can sell natural soaps and shampoos you make at home, you need to get a health and safety license.
These licenses are obtained after you and your working space go through a safety inspection, so make sure you check with the health department to see if you need one.
Businesses may require the installation of a public sign to promote their offerings.
Because each city has different sign regulations in terms of size, form, and placement, you must check with them to ensure you are complying.
Since every business pays taxes, sales tax permits are typically included in the general business licenses. However, this isn't always the case.
To run a business, you may need to obtain a separate sales tax permit, so, once again, you need to check with the tax department in your area to make sure you get all the permits you need.
Tips On How To Run A Business From Your Home
Now that we have explained what the necessary licenses are for all home businesses, it is time to offer you some tips on how you can move on with running your business from your home.
Here are a few pieces of advice:
Of course, we're not suggesting you move to a new place if you don't have the money to do so, but if you are serious about running a home business for the rest of your life, doing so while living in the far-away suburbs won't get you more clients as the years go by.
Set A Timetable For Yourself
Working from home can offer more flexible work schedules than working in a cubicle or for an employer.
Although you have the option of choosing your hours, try to adhere to a fixed schedule that's best for your performance. You can, for instance, go for the standard 9-to-5 routine or wait until 11 a.m. to start working.
This will also depend on the kind of business you are running, and the hours clients can visit you or use your services if you are using online communication at work.
Just because you are working from home, that doesn't mean you should work in your pajamas.
Even if your business involves sitting in your home office all day long and working online, you should still dress for work.
This will encourage you to work efficiently and help you trick yourself into thinking you are in an office.
Not only that but it will help you enjoy more at the end of the day when you can put your PJs back on and watch a Netflix series.
Set Up A Separate Office Space
Wearing your work clothes just to sit on the couch will only get you there halfway; to create a productive work routine for your home business, you will also need an office space or working area that is separate from the areas where you sit and relax.
Evaluate Your Operational Expenses
One of the reasons why people choose to run a business from home is its low operational expenses.
Even so, there are still some expenses there as working from home means you might need to spend money on creating that office/working space if you don't have one and buying the necessary equipment.
You can easily run a business from home so long as you get the right licenses and authorizations to do so.
Once you do that, then you should make sure to use our tips to build a successful business!
Connect with Aspiring Entrepreneurs:
