Operating a home-based business can give you the best of both worlds. Like all small business owners, you enjoy the satisfaction of being your own boss and being the person who makes the decisions.
But if you run your business out of your home, you also enjoy the benefits of being able to work flexible hours, of not having to commute, and certain tax advantages. In theory, you can run a successful business out of your home and have the flexibility to be there for your family, spending more time with your children or arranging your work schedule around your family's needs.
No wonder so many Canadians are attracted to operating a home-based business. But is operating a home-based business right for you?
Starting any business requires planning and soul-searching, but there are particular aspects of your business' operations that need to be considered carefully before you start a home-based business. This article assumes that you already know what you want to do and how you're going to do it; it provides guidelines for deciding whether to run your business out of your home or not.
Legalities - Like any other business person, you need to set up your business legally. You will have to choose a form of business (such as a sole proprietorship, partnership or corporation), and register your business name, if your business has a name other than your own. (You can find links to articles outlining the forms of business and business registration procedures in my Starting A Small Business Library.)
You may also need a business license, depending on the type of business you're running. And you have to run your business according to provincial and federal laws, which means you may need to register for Workers' Compensation insurance with your province, or collect GST/HST and/or PST.
But you have to do all of these things no matter where your business is located, so let's look at factors specific to home-based businesses that you need to consider before you turn a room of your home into an office and start selling your products or services.
One important consideration before you start a home-based business will be your house and your neighbourhood. Continue on to the next page to learn how to determine how well your house and neighbourhood will suit starting a home-based business.
