Understanding Start Up Home Based Business Laws
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Reference & Education > Legal
Jun 18, 2007
jamesmlowe
Understanding Start Up Home Based Business Laws
Starting an Internet home based business is a surprisingly small time consuming task when it comes to the legal details. It is frequently virtually effort free and very low cost. When it comes to complying with local business laws and regulations, such as licensing, you will find it to be a snap. The reason for this is that the main concern with so many municipalities is zoning. Why on Earth zoning you reasonably ask? The reason behind zoning regulations for businesses involves the amount of walk in and drive in traffic that a residential or semi residential community would have to endure with the addition of a home business in the neighborhood. To be honest with you what terrorizes many people, especially with children, is that they are afraid this will be a front for some kind of drug pushers. As in cold blooded criminals who care about money and not at all about you or your family. An online home based business seldom meets resistance by local authorities, because it is reasonable to assume and easy to prove that this type of business does not typically have client traffic. An Internet home business, just as the name indicates, is conducted on the Web and not the street or sidewalk. Clients are met and communicated with by Web, cell phone, traditional phone and fax. None of this would disturb the neighbors. This actually increases the intellectual quality of neighborhoods. Business owners tend to pay more taxes also. In fact, the major hurdle of having the business there is the outside noise, distraction and interruption problems experienced by the Internet business owner him or her self. The interruptions and noise of the neighbors. The opposite is seldom true. Internet home enterprise owners can be in business for years before, if ever, their neighbors even know they have a home business. Here are procedures typical of complying with local home business regulations. Each municipality, and particularly each state, will have different costs and compliance requirements. Virtually all of them vary very little. In Phoenix, for example, applications for local business licenses is $20 and the annual fee is $50. This is prorated for a portion of a calendar year the first year. The application is directly to the point and easy to complete. Cities will want to know the business name industry, and whether it is a sole proprietorship, partnership, LLC or corporation. The Internet home based business owner has to provide the full address, whether it is a rental property or owned and if the business records are stored there or elsewhere (and where that other location is) and whether it is a brand new business or one you just bought. In a lot of South Carolina, on the other hand, the additional question asked of an Internet business or any home business is how much, if any, client or vendor traffic is expected. They will also inquire as to what the product or products sold, type of business conducted in the course of the business day, and what type of business activities the proprietor and staff, if any, is engaged in during the course of that day. These questions are to determine if the business is going to be disruptive to the neighborhood which the police would not appreciate. The business license fee starts at $20 (no application fee) and the first year is based on anticipated gross revenue. Years after this, the owner is asked to divulge the gross profit of the prior year and from that the license fee is determined. Naturally the higher the gross profits the higher the business license fee. Before you start your Internet home based business in compliance with the laws, the first stop to make, either in person or online, is the office of the city clerk. Sometimes this will be located at your city county building.
James M. Lowe writes original articles about home business opportunities.
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