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Checklist on Requirements for Home Based Businesses

Mar 19th, 2009 by admin | 78

Starting a home-based business is a rewarding and flexible option for thousands of small business owners.(ask a business broker live)  However, starting up is not as simple as hanging an Open for Business sign on the front door.(ask a business broker live)  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.(ask a business broker live)

 

 

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.(ask a business broker live)  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.(ask a business broker live)  County registrations may apply to you if your home-based business is outside the jurisdiction of a town/city.(ask a business broker live)

 

 

2.(ask a business broker live)  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.(ask a business broker live)  You can contact your state’s business license office for a complete list of the occupations that require licensing in your area.(ask a business broker live) 

 

 

3.(ask a business broker live)  Home Occupation Permit

Many city and county zoning and planning agencies require all home-based businesses to get a Home Occupation Permit.(ask a business broker live)  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.(ask a business broker live) If your area is not zoned for your type of business, you may need to file for an additional variance or conditional-use permit.(ask a business broker live) Visit the Zoning Laws for Home Based Businesses page for more information about zoning laws for home-based businesses.(ask a business broker live)

 

 

4.(ask a business broker live)  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.(ask a business broker live) 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.(ask a business broker live) If you plan to run an online business, visit Collecting Sales Tax Over the Internet.(ask a business broker live)
 

5.(ask a business broker live)  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.(ask a business broker live) You can check with your state environmental protection agency to see if these regulations are applicable.(ask a business broker live)

 

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.(ask a business broker live)  Additional permits may be required for food-service or food-preparation depending on your state.(ask a business broker live)
 

6.(ask a business broker live)  Sign Permits

Some cities and town have sign ordinances in effect that restrict the type, size, or location of signs placed on your property.(ask a business broker live)
 

7.(ask a business broker live)  Construction Permits

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

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