This is the first installment in a new weekly series here at Home Office Warrior, where I (Andrew Flusche) will answer your legal questions about running a home business.
I am a business attorney who works out of my home office in Fredericksburg, Virginia. Which certainly makes my understanding of the legal issues of a Home Office Warrior unique. I regularly assists clients with business formation, licensing, zoning, intellectual property, litigation, and other issues. I has been blogging himself since 2006, and I love the giant online conversation!
If you have questions about trademark registration, be sure to sign up for the free webinar Andrew is hosting on August 18th: Trademark Registration Basics.
Now, here’s the first question for Legal Andrew:
Q:
Do I need a zoning permit to work from home?
A:
Most likely, yes. Most local governments have enacted zoning ordinances that regulate the specific things you can do out of your residence. Since a business can disrupt the quiet enjoyment of your neighbors’ homes, municipalities commonly enact special rules regarding home businesses.
The easiest way to find out what you need is to call your local zoning or code compliance department. The employees there should be able to tell you if your home business requires a special permit, commonly known as a “home occupation permit.”
Obtaining a permit is usually a simple matter of filling out the application and paying a small fee (maybe $30). But if your intended use runs afoul of the zoning ordinance, you might have difficulty with your permit. That’s when you could have to make a hard decision about changing your business, moving it elsewhere, or finding a new place to live.
Even with a permit, you will likely be limited as to specific business activities that you can do at home. Common limitations include: no outside business signs, no non-resident employees, and only one commercial vehicle allowed on the premises.
Disclaimer: Andrew Flusche is a licensed Virginia attorney, but these posts do not constitute legal advice, nor do they create an attorney client relationship. For legal advice, consult an attorney licensed in your jurisdiction.
Well, what about the Elmer Fudd Rule? “Be verwee, verwee quiet”.
I think zoning boards and governmental agencies have not kept up well with the work at home movement.
In this regard, I tend to think that there is a difference if you are running a retail practice out of your home in which you invite clients in to your home, and allow them to park in the neighborhood, or if, like me, you simply operate from your home and hardly (if every) meet anybody at your home.
The biggest problem, in Texas anyway, is not the issue of zoning. It is Home Owners Associations (HOAs). Most have covenants about not working from home. The master planned community in which I live just absolutely forbids it. Of course these rules were written in the mid 1970s when such things were not heard of. I have spoken to the HOA people over time and they assure me it does not apply to people like me, but the restrictive covenant does not seem to make that distinction. They indicate it is intended for people who want to run retail or substantive businesses out of their homes in which employees are required, such as beauty shops, auto repair, gift shops and the like. But, again where is that distinction made? Besides, when did I not become a substantive business? And, the thing is that The Woodlands, Texas has a huge work-at-home population.
And, as to zoning, I think it also makes a difference if you incorporate or file assumed name certificates, as lawyers just love to do because they hate operating as “John Smith”, Attorney when they operate under some all powerful name like “Smith & Associates”. Again, in Texas if zoning will not get you, taxation will get you for doing these things. There is no income tax in Texas, but there is a franchise tax for certain incorporations and LLCs and Partnerships, and if your file an assumed name certificate the taxing authorities will estimate your business equipment and tax that.
Like the column.
Tip: Double check the exceptions to the rules!
I went down to see if I needed a permit to run my law office out of my home. Because of the type of business, I qualified for a home-based business “loophole” and do not need a permit…as long as I don’t erect a billboard on my front lawn, cause an unreasonable amount of traffic in my neighborhood,use my neighborhood as a parking lot, etc.
Andrew,
Our township (and many others, based on my research) stipulate home occupations must be conducted within the house, not in an accessory structure. At my previous house I worked from a detached, converted shed and it was wonderful. Now my new township wants to forbid it. Have you heard of this, and do you have any ideas on how I can work from my shed again? It’s a completely zero-impact business — web programming and that’s it. Help!
@Missing my shed - Your best bet in this case is to talk with a local land use or real estate attorney. They might be able to help you find a way to use the shed under the existing zoning ordinances. Or you might be able to get a variance for your shed, depending upon the specific situation. Good luck!
Andrew Flusche’s last blog post..Stafford County Traffic Court Lawyers