{"id":5487,"date":"2024-10-04T15:21:33","date_gmt":"2024-10-04T20:21:33","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/operating-a-home-based-business.html"},"modified":"2025-06-30T13:45:00","modified_gmt":"2025-06-30T18:45:00","slug":"operating-a-home-based-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/operating-a-home-based-business.html","title":{"rendered":"Operating a Home-Based Business"},"content":{"rendered":"\n<section data-testid=\"fl-simple-hero\"  class=\"fl-simple-hero\">\n    <div class=\"fl-simple-hero-container fl-container fl-flex fl-items-center\">\n                <div class=\"fl-simple-hero-title\" data-testid=\"fl-simple-hero-title\">Operating a Home-Based Business<\/div>\n            <\/div>\n<\/section>\n    <div class=\"fl-container\">\n        <div class=\"updated-breadcrumb-list\">\n            <ol>\n                        <li>\n                <a href=\"https:\/\/www.findlaw.com\">FindLaw <\/a>\n                <span class=\"breadcrumb-separator\" aria-hidden=\"true\">\/<\/span>\n            <\/li>\n                                <li aria-current=\"page\">Operating a Home-Based Business<\/li>\n            <\/ol>\n\n        <\/div>\n    <\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Operating a Home-Based Business<\/h1>\n\n\n<figure class=\"wp-block-image fl-no-margin\"><img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/image\/upload\/ability-law\/wp-prod\/content-original-images-work_from_home.jpg\" alt=\"\"\/><\/figure>\n\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw Staff<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/robert-rafii-esq\/\">Robert Rafii, Esq.<\/a>\n                | Last reviewed\n        <time>\n                            June 30, 2025\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Operating a <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_28842300\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"28842300\">home-based business<\/span> involves many factors including space and personal discipline. First, assess if your home is suitable for the business type and if you can separate work from family life. Ensure compliance with <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_28842335\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"28842335\">zoning<\/span><span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_28842335\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"28842335\"> ordinances<\/span>, HOA rules, and acquire necessary licenses. Plan logistics like parking, deliveries, and workspace for potential employees. Consider insurance, taxes, and legal advice to ensure a successful and compliant business operation from home.<\/p>\n\n    <\/div>\n\n\n\n<p><b><i>Form your LLC with confidence. <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=home-based-businesses-overview-in-content\" target=\"_blank\" rel=\"noopener\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n\n\n<div class=\"tableOfContent\">\n    <div class=\"table-of-contents\">\n        <span role=\"heading\" aria-level=\"2\" class=\"table-of-contents__title\">Operating a Home-Based Business<\/span>\n                <ul class=\"table-of-contents__list\">\n                        <li><a href=\"#Starting\" title=\"1. Questions About Starting a Business at Home\">1. Questions About Starting a Business at Home<\/a><\/li>\n                        <li><a href=\"#Operating\" title=\"2. Questions About Operating a Home-Based Business\">2. Questions About Operating a Home-Based Business<\/a><\/li>\n                        <li><a href=\"#Zoning\" title=\"3. Zoning Ordinances and Other Land Use Restrictions\">3. Zoning Ordinances and Other Land Use Restrictions<\/a><\/li>\n                        <li><a href=\"#Plan\" title=\"4. Planning Your Home-Based Business Workday\">4. Planning Your Home-Based Business Workday<\/a><\/li>\n                    <\/ul>\n            <\/div>\n<\/div>\n\n\n<p>Thinking about starting a home-based business? Before diving in, it\u2019s important to ensure that it\u2019s the right fit for you. This guide educates entrepreneurs and small business owners about the key things to consider when running a home-based business. An honest assessment of the questions below should help you answer the big question: \u201cShould I operate a small business out of my home?&#8221;<\/p>\n\n\n<div class=\"general-step-component\">\n    <div class=\"steps-container\">\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            1\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Starting\">Questions About Starting a Business at Home<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>The decision to house your <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/home-businesses.html\" title=\"Home Businesses\">startup business from home<\/a>&nbsp;may seem obvious: You want to save money. However, unless you have the right type of home, the right kind of business, and the right temperament, the cost to your personal and family life could be considerable.&nbsp;<\/p>\n<p>Start your decision-making process by taking an honest look at the reality of working from home. Consider these questions:<\/p>\n<ol>\n<li>Are you disciplined enough to be self-employed and work from home? Your business plan should account for distractions that could arise in a home setting.\n<\/li>\n<li>Will you be able to separate your work life from your private life? To maximize your federal tax returns, you need to separate your workspace from your home space.\n<\/li>\n<li>How much space does your business need? Do you have that much free space? Will taking that much space disrupt your family&#8217;s life?\n<\/li>\n<li>Do you need a space for customers\/clients?\n<ul>\n<li>Can that space be adequately separated from the noise and mess of family life?<\/li>\n<li>If it can&#8217;t, can you keep some public areas clean enough for customers to drop in?\n<\/li>\n<\/ul>\n<\/li>\n<li>How much storage space does your business need? Does storage space need to be in your home or could it be in a rental unit? Are there rental units nearby?<\/li>\n<\/ol>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            2\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Operating\">Questions About Operating a Home-Based Business<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>If your answers to the questions above provide a green light for starting a home-based business structure, let&#8217;s move on to the practical questions about operating your business. Answer as honestly as possible. These are issues over which you may have little control, and which can cause your business to fail quickly.<\/p>\n<ol>\n<li>If you rent your home or apartment, will your business activities conflict with your lease? Even if there are no specific lease conflicts, is it likely to create a problem with your neighbors or landlord that could impact your lease renewal?<\/li>\n<li>If you live in a condo or have a homeowners&#8217; association, will any of your business activities conflict with condo rules and regulations, or with HOA covenants? (See more on this below)<\/li>\n<li>Is your type of business well suited to being operated out of a home? You may want to meet with an advisor from the U.S. Small Business Administration (SBA) for help with some of these questions.<\/li>\n<li><a title=\"Licenses and Permits Overview\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/licenses-and-permits-overview.html\">Licenses and permits<\/a>: Will your new business need a general business<a title=\"License and Permit Checklist\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-business-license-and-permit-checklist.html\">\u00a0license or environmental permits<\/a>? Contact your Secretary of State&#8217;s office, or for permits at the local level, call your municipality. You can also check with your\u00a0<a title=\"State Business Licenses\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-business-licenses.html\">state&#8217;s bureau of business licenses<\/a>\u00a0if you are unsure what licenses or permits you may need.\n<p>Local governments may require that certain kinds of business activities be permitted. You may need a variance. Contact your municipality and ask them.<\/li>\n<li>If your business produces a product, does the production process produce anything hazardous? How will that be handled? Are there regulatory requirements?<\/li>\n<li>How much waste will the business produce? Can it be disposed of with regular household waste or does it need to be handled separately?<\/li>\n<li>Should the business name have exterior signage? If so, is that allowed by the property owner, HOA, municipality? (Check your municipal zoning code for rules about signage.)<\/li>\n<li>Hours of operation: If the business will have customers and deliveries, will these take place during daytime business hours, or at other times.<\/li>\n<li>Home business insurance: Check with your insurance agent. Can you get <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-business-insurance-.html?fli=latl_biz_howto:diy_biz_ins:txt\">business liability insurance<\/a> for your particular home-based business? Also, check with a landlord to see if any additional insurance is required.<\/li>\n<li>Will you be subject to local tax or sales taxes for your products and\/or services? Will you file taxes with a personal social security number, or will you obtain an employer identification number for a corporation or limited liability company? This may affect how your business tax is filed.<\/li>\n<li>Will suppliers deliver to a home address? Can they physically deliver to a home? Is the home accessible for that type of delivery?<\/li>\n<li>Is there adequate parking for clients\/customers? For employees?<\/li>\n<li>Will you need employees to help run the business? Is there adequate workspace for an employee?<\/li>\n<li>Will your home-based business run afoul of zoning restrictions?<\/li>\n<\/ol>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            3\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Zoning\">Zoning Ordinances and Other Land Use Restrictions<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Let&#8217;s look more closely at&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/land-use-laws\/types-of-zoning.html\" title=\"Types of Zoning\">zoning<\/a>&nbsp;restrictions that could affect a home-based business. While some municipal zoning laws prohibit operating a business from home, most jurisdictions allow home-based businesses. There may be some limitations.<\/p>\n<p>For example, there may be a limit on the number of parking spots that can be used, or on exterior signage for the business. There may be a requirement for handicapped parking spots. It&#8217;s important to check with your county or city&#8217;s zoning department to make sure you are following your local zoning laws.<\/p>\n<p>If your home is part of a &quot;common interest&quot; development (like a condominium or HOA community), there are rules and regulations in place to preserve a peaceful neighborhood and prevent conflicts among the neighbors.&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/ccrs\/\" title=\"Covenants, conditions, and restrictions\">Covenants, conditions, and restrictions<\/a>&nbsp;(CC&amp;Rs) dictate the types of activities that are permitted and prohibited.<\/p>\n<p>While neighbors may have a concern about increased noise and traffic from a business operating in a residential area, covenants that try to restrict unobtrusive home-based businesses can be legally challenged as unjustified restrictions on the right to be gainfully employed.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            4\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Plan\">Planning Your Home-Based Business Workday<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Think through your workday and your workweek. Exactly how will you spend your time?<\/p>\n<ul>\n<li>When will you start work?<\/li>\n<li>What exactly will you do during the workday?<\/li>\n<li>Will customers stop in? How will they get to your home? Where will they park? How will they get to your office? Will you offer them refreshments? Will they need to use a restroom?<\/li>\n<li>How will you receive mail and deliveries?<\/li>\n<li>Will you be receiving and storing cash at your home? How will you secure it? Is there a nearby bank where you can open a business bank account?<\/li>\n<li>How does the workday end? (Does it end?) Will children be present in the work premises, or will they be at a daycare center or at school until the workday ends?<\/li>\n<\/ul>\n<p>Visioning your workday in this way should help you identify potential problems or needs of your new home-based business.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>Getting Legal Advice for Your Own Business Startup<\/h2>\n<p>When You own a business, it&#8217;s important to comply will all the relevant laws and regulations. If you would like help to start your business, talk to an experienced\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business organizations attorney<\/a>.<\/p>\n<p>Looking to start your own business? You can let our\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=home-based-businesses-overview-custom-content\" target=\"_blank\" rel=\"noopener\">trusted partner LegalZoom<\/a>\u00a0handle your business formation filing for $99 plus filing fees.<\/p>\n<h3>Related Resources<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business.html\">Starting a Business<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/home-business-and-personal-conduct-restrictions.html\">Home Business and Personal Conduct Restrictions<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/home-based-businesses-overview.html\">Home-Based Business Overview<\/a><\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n  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Organization Attorneys<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/mergers-acquisitions\/\" target=\"_blank\" rel=\"noopener\"> Mergers &#038; Acquisitions Attorneys<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/antitrust-trade-regulation\/\" target=\"_blank\" rel=\"noopener\">Antitrust Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/banking-finance-law\/\" target=\"_blank\" rel=\"noopener\">Banking &#038; Finance Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/franchising\/\" target=\"_blank\" rel=\"noopener\">Franchising Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/\" target=\"_blank\" rel=\"noopener\">Business &#038; Commercial Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/employment-law-employer\/\" target=\"_blank\" rel=\"noopener\">Employment Lawyers<\/a><\/li>\n                            <\/ul>\n        <\/div>\n    <\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This FindLaw article explores considerations for running a home-based business. Is the business well suited to being operated out of the home? Am I disciplined enough to work out of my home? What will my hours be if I work out of my home? <\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":5123,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleDIYConversionController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-5487","page","type-page","status-publish","hentry","category-smallbusiness"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=5487"}],"version-history":[{"count":0,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5487\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/5123"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=5487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=5487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=5487"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=5487"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=5487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}