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Thursday, July 24, 2014

The Legalities of A Home Based Business

Home based businesses can be an exciting new endeavor that bring in significant profits. Of course, before you get started, you should know that home based businesses are still required to conform to some strict rules and regulations. Before you decide to open your own home based business, here are a few points you should carefully review.

1. There are restrictions on the sale of certain goods and these vary from state-to-state.
There are a variety of items that you cannot produce or sell in your home. Potentially dangerous products such as medications and sanitary products are illegal to manufacture and/or sell from home.

2. You need to register and obtain certain licenses to be legally able to do business.
Before you open up shop, make sure you register your business's name in the state that you're conducting business in. Additionally, you will also need to register for a sales tax number, since every business is required to collect sales tax.

3. You may need a Home Occupation Permit and Check Your Zoning Laws!
In some states, you will need to have a Home Occupation Permit in order to legally do business. You will need to check whether or not your home is zoned for the type of commercial activity you plan to do in your home.

4. There are additional health and safety measures you may have to take.
Certain industries require extra health and safety precautions to ensure that both the working environment and final product are safe for consumption. You should check with your State Environmental Protection Agency to ensure that your home based business is up to date with all safety standards.

5. You may want to look into sign permits.
If you have a business such as a home based daycare, you may want to place a sign in front of your home in order to advertise. If this is the case, you may want to look into whether or not you need a sign permit, since certain towns will restrict the size, type and/or location of signs.

Its important to be informed before you start any kind of business. If you have any questions or concerns about the legalities of starting your own business, its best to consult an attorney. This will ensure that your business is up to code in all areas and help you understand your legal responsibilities so that your business will get off to a great and productive start. Good luck with your new business!

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