Hi, I have a rented apartment from where I run a home-based business specializing in eco-friendly products. Is it alright to do this? I have all the paperwork in place towards registration and stuff but I wanted to check and see if any of you have any ideas if its legal or not to run your own business from a rental space you pay for living in primarily. Pls advise!!
I`m not sure where you are located exactly so I can`t be specific. However generally it is alright as long as you don`t claim your entire rent as an expense. As you may only use 20-40% of your residence for your business - you can only claim that corrisponding amount as an expense. In terms of liability - if you are conducting business from your home - be it rented or owned - your insurance may be null/voided if you are conducting a commercial enterprise and don`t get insured accordingly. Ask your agent "by the way, I`m thinking of starting a business from home - am I still covered or do I need additional insurance". This way you can find out if a flood happens and you lose stock/items they are covered under insurance and if a client slips and falls at your property you are still covered.
Best of luck!
Octopus Business Solutions
Check your lease. There may be a clause that prohibits running a business from the property.
Just my thoughts
In my state, you may be required to get a business license. The statute states basically that any company that sells a "Tangible product" and does any thing to generate revenue within the state, must have a business license. This includes something as simple as running an ad for your product. If delivery of the product is to an in state customer, you may also have to assess sales tax.
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