Due to recent events, there are many people who may be looking to set up their own business or start working for themselves so that they are the ones in control. Starting a business from home can offer a number of benefits like flexibility, but you need to make sure that if you are starting out working from home, that you are doing so in a legal way. So here are some of the things that you need to be thinking about and planning for, if you think working for yourself and from home, will be in your future.
Picking your business name
When you start out, you need to have a business name that isn’t taken by anyone else, so that if required, you could establish a trademark on the name. If you find that someone else is using the name that you plan on, then it is a good idea to consider paying for a comprehensive name search so that you don’t impinge on anyone else’s trademark. You won’t want to have to change the name right after getting your business and the name established.
Choose a business structure
It can be a good idea to speak to an accountant or expert in tax before you decide on the business structure, as there are differences that can vary. There can be some tax advantages to starting a limited liability company (LLC) or an S-Corporation. However, if things are going to be quite small, you could run it as a sole trader and be self-employed that way. For any legal documents, such as contracts, using a site like Legal Scrolls could be a good idea to make sure that you’re keeping things legal. Look into the different kinds of legal business structures that you can choose from, and then decide what will fit your business best.
Permits or licenses
When you work for yourself and work from home, it is up to you to check what kind of permits you need. You might need to obtain a business license in order to do business. You might need other licenses or permits, depending on what kind of business you have. For someone who cooks or bakes, you are likely to need to have a health inspection before you can go ahead. Get it all right from the start, rather than having to deal with them down the line, and it will make a difference.
Get a tax ID
If you are a sole trader, then you can get a social security number for clients and customers for their records. But you are likely to not want your details being used by a number of people. Which is why it is a good idea to get a tax ID. It is a must for anyone trading as an LLC or a corporation, but can be helpful as a sole trader too.
If you are planning on starting a home-based business in the coming months, then ignorance can’t be an excuse. Research and plan, and you’ll get the business off to a good start.