4 Tips on Making Your Home Business Legal

“A Guest Post by Alex Williams”

If you’re running a home-based business, you probably know that not all the rules and regulations that apply to large companies apply to you.

However, there still are some things you need to do in order to make sure you’re running your home business legally.

Luckily, with the power of the internet, doing this is much easier than it was before.

And in order to help you get into it, we’ve come up with 4 tips you’ll be guaranteed to find helpful.


1. Decide on the Form of Your Business

One of the most important things you’ll have to do when starting your home business chooses its form.

This is where most of the home business owners decide to operate as sole proprietors.

This seems to be a much better idea than going for some other options such as partnership, corporation or limited liability company (LLC).

The difference here is that when running a sole proprietorship, you don’t have to separate your business taxes from your personal taxes.

With all the other options, personal and business taxes must be split, which usually require you to hire an expert in tax preparation and cause your home business to spend more money.

However, there are scenarios in which options other than sole proprietorship might seem attractive.

For example, if you plan to grow your business a lot, registering at as a corporation right from the start might be a good idea. Also, if your new business involves another person, going for one of these options is recommended.


2. Choose a Name that’s not Currently in Use

Of course, when starting any kind of business, you have to choose a name for it.

And if you plan to use anything other than your own name, you’ll have to make sure that specific name isn’t already in use.

This is something you’ll definitely want to do since mistakes regarding your business name can turn out to be pretty expensive.

Not only that another company that uses the name you went for can press legal charges against you but you’ll also be forced to change your company’s identity, which can result in you losing a huge portion of your customers.

The best way to find out whether the name you’re interested in using has already been registered by someone else is to pick up your local phone book.

Besides this, you’ll also want to turn to some online directories that’ll help you which business names are currently in use.

When it comes to trademarks and patents, you’ll also want to do a research on what’s currently registered and what’s not.


3. Register Your Business Online

Once you know what business form you’ll go for and which name you’re going to choose, you can start thinking about registering your company.

Even though this used to be a pretty complex process, you can now register your company from the comfort of your home.

This is the case because there are experts in company registration who allow you to lodge your application on their website and receive your certificate and legal documents as soon as possible.

Moreover, companies that can help you register your website can also help you check which business names are available.

So, if you get stuck with the previous step, turning to experts might be a good idea.

Registering your company online is also a good idea if you’re still not ready to register but you want to complete the application. With most applications, you can just save it and resume once you’re ready to register.


4. Obtain any Necessary Permits and Licenses

Depending on what kind of work you want to do, you’ll need some permits or licenses that’ll allow your business to operate.

Since these usually depend from region to region, it’s always a good idea to turn to your local authorities when trying to obtain them.

They should be able to tell you exactly what you need to do in order to get all the permits and licenses you need.

They’ll also provide you with all the forms necessary for your application. As we’ve mentioned above, the permits and licenses your home business is going need depend quite a lot on what you plan to do.

For example, if you plan to become a cupcake baker, you’ll most certainly have to undergo a kitchen inspection. Moreover, you’ll also need to make sure you’re allowed to operate your kind of business from your home.

Most of the cities have zoning rules and taking a closer look at them before you apply for any permits and licenses can come in handy.


Final Word

Follow these 4 tips and getting your home business off the ground should be a real piece of cake.

Once your business start growing, you’ll need to start thinking about moving to a real office which is always a good sign.

“Now if you got any new tips feel free to share with us.”

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