Steps to legal steps to take before starting a home based business

Written By Steps To Faculty Published September 17th, 2010

Starting your own business requires time and effort. It also requires careful attention to detail. One of these finite details is the law. Like any other endeavor you may pursue in your life, starting your own business requires a procession of legal steps that everyone should take. By avoiding these necessary steps, you will run the high risk of litigation and even violating certain employment and business laws, which not only could close your business but also destroy your own life. The following list is the legal steps that are necessary to take before starting a home based business.

Step 1 Visit Nolo press

Nolo Press ( is a comprehensive online legal resources with legal information for home based business. The site offers free e-books, audios and other pertinent information about the legal ramifications of entering a home based business and how to set up your business to avoid any legal problems during the course of your home based business. The site hosts a special section on small businesses and makes available the necessary legal documents for any legal issue related to home and small businesses.

Step 2 Incorporate

Although your home business may be a start up or even if it is already established you want to limit your liability should any litigation be filed against your business. Form a limited liability corporation or a S corporation to protect yourself. Remember that an S corporation must have no more than 100 employees, be US based, and there is a double taxation as each member of the S corporation pays taxes as well as the corporation itself.

Step 3 Get a business license

Although you home based business may not appear to be making a lot of money, you still need to ensure that your particular state does not require a license. Some states do not require licensure, while others adhere to it and shut down business without licensure. Check with your state and local business office to be on the safe side.

Step 4 Protect yourself

Even if you run your business from home, accidents and natural disasters occur and you need to protect your business. Consider getting insurance at or find the cheapest rates at

Step 5 Check zoning laws

Each locale has different zoning laws, which can limit your capacity to operate your business at home. Check with your local officials so as not to violate any local zoning laws.

Remember, protecting yourself now will save your business later. Please visit for more great business advice.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

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