Buy the Right House

Boost Your Home-Based Business by Buying the Right House

Guest article from Tina Martin of Ideaspired.

According to the Small Business Association, more than half of businesses in the United States are based in the home of the business owner. While it’s a popular option, running a business out of your home can be a challenge. One way to make that challenge a little easier is to shop for a home with your business in mind. Sherry & Co. wants to help you start out on the right foot, so read on!

Make a Business Plan

Before you can pick the perfect house for your business, you need to have a good idea of what the requirements of your business will be. A business plan will help you clarify your business goals and the steps you are going to need to take to achieve them. The type of business you decide to run will play a big role in the type of home you will need to purchase to accommodate your business.

Choose Your Business Structure

Most home businesses are organized as either sole proprietorships or limited liability corporations. Sole proprietorships are easy to form but, as Lumen Learning explains, they leave your personal assets at risk should your business go under or you become liable for damages to another party.

An LLC protects your personal assets. This protection exists for as long as you operate your business legally and keep your personal and business finances separate. In addition to liability protection, LLCs provide some tax advantages. Profits from an LLC pass through the LLC to you without being taxed on the company level the way some types of corporate profits are.

LLCs are relatively easy to set up. They do not require much paperwork, though most states charge taxes and fees. The rules vary by state. If you are unsure how to get started and do not want to do all the legwork yourself, consider using a formation service to save on lawyer fees.

Research State and Local Restrictions

As Bloomberg CityLab explains, most cities and counties have zoning laws that govern what types of businesses, if any, can be located in specific parts of a city or county. Some places may require that you secure a business license. Others may completely ban any kind of home-based business from being operated within a zone, city or county. If you are unsure of the zoning laws in the area where you are considering purchasing, you may want to consult with a local attorney to see if any restrictions apply:

• Ban on altering the exterior of your home for business use
• Sign restrictions
• Rules against conducting business outside your house
• Noise or odor prohibitions
• Parking restrictions
• Prohibited use of hazardous materials

Set Your Budget

You do not want to waste your time or your agent’s time tracking down the perfect property in the perfect location, only to discover that you cannot afford to buy it. Before you start shopping, it is a good idea to set your budget. You might even do some looking at telltale statistics, which will help you learn things like how long properties typically take to sell in your area. 

Choose a Property

Since you will be both living in and running a business out of your new home, you need to make sure you choose a property that meets both of these needs. Your real estate agent can be an excellent resource to help you buy or sell a home and determine all of the functions your home needs to fill:

• Dedicated office space
• Storage for products and supplies
• A place for customers and clients
• Privacy for your family and clients

If customers or clients will be coming to your home, it is particularly important to make sure you have a way to separate your living area from your business area so that both your family and your clients feel safe and comfortable.

Running a small business from home can be an extremely rewarding endeavor. The commute time is hard to beat! However, it requires careful planning to succeed. Purchasing a new home with your business in mind is a great way to set yourself up for success right from the start, and if that is part of your plan, be sure to partner with the knowledgeable and experienced real estate agency Sherry & Co.