We all try to avoid red tape whenever possible, but it seems to follow us around where ever we go.
Establishing a Home Based Business is no different.
In fact, making sure you have been successful in meeting all the red tape requirements before you open your doors for business is going to be less of a headache in the long run.
The first thing you need to do is to determine the format of your business.
Are you going to be the sole proprietor? Or would some other option like a partnership, a limited partnership, or even a corporation serve you best? Each of these business options have their pros and cons.
Make sure to take the time to review each of them and determine which one will suit your interests best.
For example, a sole proprietorship is the quickest business to set up, but it also has comes with greater personal liability.
Incorporating will separate your personal interests from your business interests, but this will require legal oversight that may be time consuming or expensive.
So be sure to take the time to review the different options and how they will affect your home based business.
The next step in establishing your home based business is to check with your local government about laws pertaining to home based businesses.
Most local governments require you to purchase a business license or reseller certificate.
They certainly aren't going to pass up any opportunity to get their hand into your tax pocket.
So make sure you are properly licensed and certified to do business out of your home.
While you are taking care of the licensing business, you should probably step over to the zoning office to make sure your home business will not violate any zoning laws.
It would be a shame to find out after spending time and money in setting up a home based business that you do not live in an area that permits business to be carried out in residential areas.
Now, you will need to check into insurance options.
You need to face the fact that we live in a litigious society and liability insurance is probably a good idea.
Not every home based business will encounter the same degree of liability, so not every home based business needs the same level of insurance.
But it is always wise to check into the possibilities.
You don't want to find yourself in a mess down the road because you thought you could skip this step in the beginning.
And finally, you need to purchase equipment and tools that will allow your business to function.
Don't skimp here thinking you can wait a couple months for profits to start pouring in before equipping your office.
You need to be able to satisfy your customers from day one, and if you are lacking an important piece of equipment like a copier or fax machine, they will find that an annoyance, and look elsewhere.
So take the time to fully outfit your home office before you open your doors on the first day.
Remember that while red tape is annoying and it slows things down in the beginning, cutting through it in the beginning is going to save you headaches in the long run.
Establishing a Home Based Business is no different.
In fact, making sure you have been successful in meeting all the red tape requirements before you open your doors for business is going to be less of a headache in the long run.
The first thing you need to do is to determine the format of your business.
Are you going to be the sole proprietor? Or would some other option like a partnership, a limited partnership, or even a corporation serve you best? Each of these business options have their pros and cons.
Make sure to take the time to review each of them and determine which one will suit your interests best.
For example, a sole proprietorship is the quickest business to set up, but it also has comes with greater personal liability.
Incorporating will separate your personal interests from your business interests, but this will require legal oversight that may be time consuming or expensive.
So be sure to take the time to review the different options and how they will affect your home based business.
The next step in establishing your home based business is to check with your local government about laws pertaining to home based businesses.
Most local governments require you to purchase a business license or reseller certificate.
They certainly aren't going to pass up any opportunity to get their hand into your tax pocket.
So make sure you are properly licensed and certified to do business out of your home.
While you are taking care of the licensing business, you should probably step over to the zoning office to make sure your home business will not violate any zoning laws.
It would be a shame to find out after spending time and money in setting up a home based business that you do not live in an area that permits business to be carried out in residential areas.
Now, you will need to check into insurance options.
You need to face the fact that we live in a litigious society and liability insurance is probably a good idea.
Not every home based business will encounter the same degree of liability, so not every home based business needs the same level of insurance.
But it is always wise to check into the possibilities.
You don't want to find yourself in a mess down the road because you thought you could skip this step in the beginning.
And finally, you need to purchase equipment and tools that will allow your business to function.
Don't skimp here thinking you can wait a couple months for profits to start pouring in before equipping your office.
You need to be able to satisfy your customers from day one, and if you are lacking an important piece of equipment like a copier or fax machine, they will find that an annoyance, and look elsewhere.
So take the time to fully outfit your home office before you open your doors on the first day.
Remember that while red tape is annoying and it slows things down in the beginning, cutting through it in the beginning is going to save you headaches in the long run.
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