Is there anything illegal about operating a legitimate retail business out of my home?

Question

I sell homemade furniture and typically advertise it locally in the classifieds and on craigslist and people purchase it from me at my home. Are there any ordinances or restrictions on this that I should be aware of?

Answer 1

zoning laws, tax laws, licensing laws..

check with the county and state.

sounds wonderful what you do actually.

Answer 2

There are certain rules set forth for operating home businesses.

Basically...don't do anything to annoy your neighbors (i.e. - draw extra traffic to your street, have people constantly going in and out of your house, etc. -- as long as you have a person showing up here and there, you should be OK).

You should be able to find these on the web page for your local city or county. Look under business licenses. It will list the rules.

You do need to get a business license though at a cost of about $100 a year. I have a home run business and there are very few restrictions other than the ones I mentioned. Mine doesn't involve having people come to my house though.

Here is the info for my city, for example:

http://www.citrusheights.net/home/index....

Answer 3

Make sure you have adequate insurance.  If someone comes to your home and is injured they will sue you and your homeowners insurance will not cover the liability claim unless they have endorsed the policy to show you have a home based business.

Also your materials/tools/equipment would not be covered under your homeowners policy.  If you do any sort of painting/staining you could have a problem as well.  

Answer 4

Check your local zoning laws

Answer 5

You've already received alot of really good answers. I just wanted to add, that since you have a business, you need to go through all the proper legal steps for that business - to protect yourself and your business.  You'll need to establish a business entity - typically that will mean incorporating your business, setting up a business checking account.  Needing to keep track of all costs and what you bring in and set up separate taxes for your business.  (can also set up as sole proprietor - which you may have already done.)

Most towns have alot of restrictions on home businesses and like others said, if you have people coming to your home for a business, you could face huge liability issues.    First, check with your local zoning ordinances to make sure it is ok in your town to have people coming to your house,  second make sure your business is actually set up as a business - also get liability insurance or you will be leaving yourself wide open to problems.   It's a hassle to set up a business properly, but it is absolutely vital to do so.

Answer 6

~~There is in the city I live in. You would need to contact your city or county to find out the zoning requirements. You would also need to have a business license.~~