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Working From Home - Special Consideration
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Many of the same federal and state laws apply for both home-based businesses as well as other businesses. However, there are several special considerations for home-based businesses that you should be aware of.
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Zoning Regulations. It is important to research your city's zoning regulations. Certain areas within your city may have zoning restrictions which prohibit a small business owner from operating out of his or her home. If you violate these restrictions, you could be fined, shut down, or both.
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Product Restrictions. Home-based production of certain products such as fireworks, drugs, poisons, explosives, sanitary or medical products, and toys is illegal. Some states also prohibit the production of food, drink, and clothing in a person's home. Find out what product restrictions apply in your area.
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Work Certificates or Licenses. Some states require that you obtain a work certificate or license when working out of your home.
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Registration. Like other businesses, you will be required to register your business name and obtain a sales tax number before you can officially start operating your business.
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Employees. If you have any employees working for you, it is important that you comply with employee health and safety laws even though you are operating out of your home.
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