Permits and Licenses

Starting a small business at home may require certain permits or licenses. Because local zoning laws vary, it would wise to check before you get started.

The local library is a good resource for zoning laws and local ordinances. Researching through the library also gives you a chance to peruse them without alerting local government officials of your plans.

Local industry associations, trade groups, Chambers of Commerce, and local planning or zoning departments are another source of information.

If you live in an apartment, management may impose certain restrictions. Read your rental agreement. Condominiums, co-ops or townhouses may also have restrictions. Read your tenant or homeowners' agreement. Homeowner's association restrictions may also apply.

If you live in a house and have a homeowner's association, check to see if small business regulations apply.

Starting a small business at home probably won't attract much attention from your neighbors, especially an Internet business. So it is unlikely you will run into zoning problems even if you are 'technically' in violation. Your relationship with your neighbors and how zoning laws are enforced will likely have greater influence than the letter of the law.

Nevertheless, before you take the plunge, be sure you know what is required of you before you go to the trouble and expense of starting a small business at home. It could save you a lot of grief later.

Business license

Depending on your local laws, you may be required to obtain a business license or some facsimile thereof. If required, the license fee is usually based on your annual receipts. Obviously if you are new in business, you don't have any receipts yet. In that case, the fee will be based on your estimated receipts.

Sales tax permits

If you are selling goods via the Internet, you may be required to obtain a sales tax permit. For example, California requires business owners to collect sales tax for the sale of certain types of goods sold to California residents.

Every state is different, so be sure to check. If you live outside of the United States, check your country's laws and regulations.

Shipping goods to a foreign country

If you aren't selling anything outside of your own country, you needn't worry about this. But if you ship any goods to customers in foreign countries, check with customs agents in the destination country. Restrictions may apply; you may also be required to obtain certain permits or documents ad pay import fees or tariffs before the shipment can clear customs.

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