As you prepare to run your business from home, you must know that every business must be legally recognized by laws that govern the running of a business. This process of legalizing a home business can be challenging. Because most business laws do not cover businesses run from a home or entirely on the internet. However, there are a number of steps that you should follow to try to legalize your business. These are:
a) Check local business laws in your locality to see whether companies run from home are covered or not. Most states and countries do not have rules and regulations in place for such companies. But mat have a generalize category of businesses that do not fit preexisting categories.
b) Apply for a business license if necessary. The license is your legal permission to operate your business. The fees and regulations of a home business vary depending on state and country. And you must find the specific fees and procedures for your kind of business from the local government agents.
c) Get a sales ID number depending on the business you are running. This ID can be obtained from a local tax office once you have the business registration certificate or a business license. This ID will also assist you not to pay taxes for products you purchase through the internet for company use.
d) Be certain on the space that you are allowed to use. In most cases, a home based business will need only a small desk space to run everything. As long as it can accommodate most required hardware including a computer, printers, scanners and telephone handsets.
e) Property tax is another issue that you must pay close attention to. Any property that you consider a business property like computers and other accessories must be duly registered and any taxes paid on them.
f) Remember that for home based business. The city council will not allow vendors and clients to come to your home for business. Most cities and councils have rules in place that prohibits this. If you need to meet clients, you can choose to meet at a hotel or a public place. As for the company property, you will only be allowed to have a certain number of property e.g. cars registered under your business at your home.
g) Conflicts also arise when it comes to business signs and erecting business boards at your home. Some cities and towns do not allow people to have signs in the residential areas advertising the businesses they run in their homes. You will need to check this with your local business laws to avoid unnecessary clashes with the law.
h) Before you are granted a business license, an inspection may be required. Prepare for this inspection in advance. And be sure that what you put on paper is the same as what the city inspectors will find at your business base. When you get a license, have it framed and hung on the wall in case of inspections. It will be easy to notice.