-•- HomeOfficeDigest.com Newsletter - Issue 152 -•-
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THE HOME OFFICE DIGEST NEWSLETTER
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WORDS OF THE WEALTHY
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FEATURED ARTICLE
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Are There Laws For Running A Homebased Business? 
October 2002 
By Bob Brolhorst 

The answer is no, but there are some things that you need to know
before you get started. 

1) Check with the city in which you will be starting your business. 
If your business will be home-based, you may not need a license, but 
only a permit or a home occupation permit. In some cities, you don't 
even need a permit. 

2) Then check with your county, as the county requirements generally 
over rule that of the city. 

3) Finally check with your state. If you hire anyone or give yourself 
a paycheck, you need a Federal Employer ID number (FEIN). 

4) Always start with the zoning department. If you live in a 
residential area, a home-based business may not even be allowed, 
or only certain types of home-based businesses may be allowed. 

5) Ask the experts by making a few phone calls. Don't rely on 
answers from others in your area who have businesses. Ignorance 
of the law doesn't hold up in court. And the fines can be pretty 
large. 

6) Another piece of advice, even if your city doesn't require a 
permit or license, your insurance company may require registration 
of some sort before issuing a liability policy for you. Liability 
insurance is something you can not be without. 

7) Obtain the services of a good attorney. They will be able to 
advise you on such issues as whether to incorporate or not, or 
whether being a sole proprietor would be better. Also you may need to 
have legal contracts drawn up so keep a lawyer on retainer, it will be 
money well spent. 

8) Trademarks for your business may also be necessary, but this is 
something that your attorney can help you with. 

---------------------------------------------------------------
Bob Brolhorst 
Wave 5 Marketing 
bbrolhorst@wave5marketing.com 
http://www.wave5marketing.com 


Treasure Tip 
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An advisor once told me that at least 50 percent of every business 
expense dollar should be spent on marketing and advertising during 
the first few years of business. His advice helped me increase my 
gross income more than 100 percent per year for the first four years.


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