By ECommerce Guide Staff
If your e-business is one that will be developed and operated from your home (often referred to as SOHO — small office, home office), you'll need to explore what startup paperwork may be involved. Depending on the size and type of your future business, you should be able to begin your home-based venture fairly easily if you've made the necessary preparations and done some research.
Contact your local town hall or government offices to determine whether permits or business licenses are required. Also inquire as to whether there are any restrictions that may become evident as your business grows. For instance, there may not be any paperwork involved if you operate the business independently but that may change if you hire employees.
Housing developments, such as condominiums and co-ops, may have their own rules for home-based businesses. Prepare an unrestricted path by making all inquiries and appearances before the housing board before embarking on any startup activities.
If you find that there are zoning barriers to your SOHO, apply for variances or conditional use permits if possible. Sometimes if there is no conflict or objection from neighbors, you may be able to get an exception to an ordinance.
Be sure that all your tax collection documents are in good order before you begin doing business. A sole proprietor or a company operating as a domestic limited liability company (LLC) may use their own social security number as their taxpayer identification number (TIN). However, if you hire employees or attain partners you'll have to obtain an employer identification number (EIN). Additionally, if your business requires sales tax collection, you'll have to apply for a seller's permit.
Once all the necessary documentation is in place, you can run your home-based business as if you were leasing office space. In fact, your company may be able to pay a portion of your housing expenses — a charge that can be written off as overhead.
In the event that you will need to meet with clients or conduct presentations, arrange to go to meet somewhere other than your office premises. Check conference/meeting room availability at libraries or rent per diem space from a local business.
A good indicator that your home-based business has become a success is when you are able to lease corporate office space. In the meantime, create a comfortable and semi-separate workspace from your living space and establish yourself as a legitimate professional organization with business cards, letterhead, business phone line and basic office equipment.
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