If you've ever thought about starting a business out of your home, you're likely well aware of the great perks it would provide: flexible work hours, being your own boss and of course, skipping the dreaded commute. But before you put the final touches on your new business cards, it's important to understand the legal and financial realities of running a home-based business.
Below are some important considerations before opening the doors to customers:
• Are you able to deduct part of your home as an office expense?
• Will your neighbours be impacted by increased traffic, noise or parking?
• Do you have the appropriate insurance for both your home and business?
• What are the municipal bylaws surrounding customer parking?
• What are the rules around employees on the premises?
Consulting with a lawyer is a good first step when thinking about opening a home-based business.
"A lawyer can help you evaluate regulations you might not have considered," says Ray Leclair, vice president of public affairs at LAWPRO, the provider of professional liability insurance for lawyers in Ontario, and TitlePLUS title insurance for home owners and lenders across Canada.
"Will you need zoning permits for commercial use in a residential zone? Are there laws restricting visible advertising in your neighbourhood? Understanding the rules and regulations that may affect you can save you time and money in the long run, and set you up properly for success."
Starting your own business can be an exciting and fulfilling experience. With the right preparation and an experienced lawyer, you can give yourself the best shot at success.
