Running a business from the comfort of your home means getting a home occupation permit. Home-based businesses must follow standards, restrictions, and regulations. Each needs this permit before they can establish and start company processes.
Depending on the business, industry, and premises, home occupation permit rules vary. Laws in most U.S. cities and towns limit sites and conditions where businesses can operate.
Home-based businesses (HBB) are often small and operate from a home office. They usually do not feature a front-shop area, customer parking, storage, or signage. Depending on residential use and location, some businesses cannot do certain “business-like†things.
As each state has its own rules and guidelines, owners need to research their area. Business owners need to learn about zoning and home occupation permit information.
Not all lines of work can be a home-based business. Yet, the most frequent home-based occupations include, but are not limited to:
Running a home-based business is not as simple as selling merchandise out of a house. Zoning districts and restrictions can cause some hiccups. Small business owners may need to make alterations and limit daily operations.
Examples of some restrictions:
No matter the business activity, all home-based businesses need a home occupation permit. Some home business operators may also need a business license to run a business from their house. Yet, it often depends on the use of the property.
Licenses and permits the company requires depends on business activity. Residential purposes or the line of work or services you offer changes the papers you need.
The cost of running a home business can range from paying a one-time fee to a percentage of the business income.
Apartment Living Business Activity
Entrepreneurs running home businesses from their apartment complex need to notify their landlords.
Informing the property owner about business activities is crucial to avoid any issues. Owners may have specific rules about running a business out of their building.
Yet, it is not unusual to hear about others doing business activities from their homes. (i.e., offering unofficial childcare services or baked goods). Trying to operate a business under the radar by not registering it poses many risks. Not only can the business owner get caught, but they can also lose their income.
With a home-based business, many owners find parking a challenge. Depending on business activities and growth, clientele and workers may need parking. The home’s location may have parking restrictions. Even off-street parking can be difficult when running a home business.
Not only can parking cause issues with neighbors, but the county, state, or town may prohibit it. The community may restrict certain types of vehicles. (i.e., commercial vehicles), or the number of cars that can park near your home.
3. Commercial Signage
Advertising is often a big part of owning a small business. Yet, owners run into some issues about commercial signage outside the home.
Some communities enforce strict codes. These codes are to prevent home-based businesses from putting up a sign.
Owners must consider this when it comes to their marketing strategy. Without the name of business sign on the outside, it may be finding the place a challenge.
The best method is to check with your local authorities. Find out whether a business can put a sign on the outside of your primary residence.
Noise and odor pollution can be other issues home-based businesses experience. Depending on the home business, it can create noise and odors, especially in small areas.
If the business makes a lot of noise, vibrations, dust, smoke, or fumes, it may upset the neighbors.
Whether you own a pet grooming or car garage business, owners risk producing noises and fumes. Anything that disrupts the neighborhood’s atmosphere can result in problems.
Small business owners must learn about local restrictions. Find out what your home-based business can and cannot generate.
Living in a private neighborhood with a Homeowner’s Association (HOA) has its own limits. Check the HOA documents and governing board to learn about what they allow.
As long as the business does not break HOA rules, they often allow home businesses. (i.e., traffic, parking, signage, etc.).
The purpose of homeowner associations is to prevent neighborhood havoc, nuisances, and trouble. If the HBB has many deliveries of materials, client visits, or staff traffic, it can cause issues. It may upset some neighbors and HOA board members.
The common concern private communities have with home businesses is an increase in traffic. To avoid problems in your neighborhood, check to see what the HOA prohibits.
Getting a home occupation permit may not be the same in all states. Yet, the application process is often the same.
Before starting a business from your home garage, basement or office, make sure to check off all the regulatory boxes to operate legally.
Get and fill out the local Home Occupation Permit Application for your home-based business.
Some other items to check before starting a business from home include:
In some circumstances, you may need these items as proof that the business is compliant.
Once you get the home occupation permit, you can start running your home-based business.
