If you have a home-based business, or want to soon have one, then it can really mean a freedom like no other. But as well as nailing the business idea and making sure that it is going to be a way to make money, there are a few other things that you need to do. You need to ‘do the i’s and cross the t’s’, so to speak; you need to make sure that you are running a business that is trading legally and adhering to all of the legislation and industry regulations.
If you’re not sure exactly what you should be doing, then first of all, it can be a good idea to speak to a small business attorney or think about looking up a site like epcgroup.net, for example. Companies like that can talk you through data compliance and regulations, to make sure that you’re up to date and understand all that is going on. Take the recent data protection changes in Europe, for instance. You may think that the laws and changes only apply to businesses in Europe. But in reality, if you have European customers or site visitors from over there, you need to be adhering to the guidelines. Just one aspect that you might not have been aware of. However, ignorance is not an excuse.
So here are some other aspects that you should be thinking about to make sure that your home-based business is trading legally.
Choose the Right Business Name
You may know of pop bands that have had to change their name after a while, as it turns out there is already someone called that. The same can happen in business, although it can be a costly mistake. So search for company names online, to make sure that what you want isn’t already taken. Then you should check brand names and any copyrights that there are on names. You could even add a trademark to your name once you’ve chosen one that is available, so others can’t take it off you.
Be Registered For Tax
If you own a business, even if you are making losses and won’t owe tax, you still need to be registered to be able to complete a tax return. It is illegal to not be registered and to not pay taxes that you owe. So make sure that you get a tax ID or unique taxpayer reference, depending where in the world you are living and working.
Permits and Licenses
Even if you are running a small cake baking business from home, you will need a permit to do so. A local inspector needs to check where you are baking from, to check that you are going to be selling cakes that have been made in a healthy and safe environment. A site like sba.gov/ can give you more information, but even if you bake once a month, if you are selling it as part of your business, you need to have a permit. So check if there are any licenses or permits that you need to have in place for your home-based business.
Chris,
This is really sound advice. Being a new entrepreneur and wanting to create a legit and legal business takes time and requires my due diligence. Thank you for sharing.
Yolanda