Read This Before Using Your Address for Your Home Business

Read This Before Using Your Address for Your Home Business

Many entrepreneurs and small business owners in Florida, especially those running a home business, have taken to using their personal address for their business as it saves on time and money. However, this might not always be the best idea. Be sure to read into these issues before writing off the idea of a unique business address entirely!

Interested in starting a home business? Why not read our blog on starting your own freelance business on a budget here?

Lease and Homeowner Restrictions

If you rent an apartment or condominium, then you should check your lease to see if there are already any prohibitions in place against operating a home business. Condo owners, too, would do well to review their homeowner association’s covenants, codes, and restrictions for similar constraints. However, even if you do live in a complex with such restrictions, you shouldn’t give up hope just yet. Depending on how understanding your landlord or HOA is (or isn’t), you might be able to get an exemption from these rules if your planned business won’t interfere with or otherwise upset your fellow residents.

Zoning Restrictions

What do you know about your city’s zoning laws? Do you know if your local municipal code considers home-based businesses to be residential or commercial in nature? If not, get in touch with your city officials and inquire about any codes or ordinances that would prevent you from using your home as the address for your small business.

Liability Protection

If you structured your business as an LLC or a corporation, then you might want to reconsider using your home address as its principal location. A major component in liability protection is the fact that, from a legal standpoint, corporations and LLCs separate the assets of a business from its owner. This means that, for example, debtors cannot go after an owner’s personal finances should the business go under. However, this protection will be invalidated if you fail to keep said assets independent of one another. Simply put, using a personal address for your business could leave you personally liable and, if you are the owner of a corporation, pierce the corporate veil.

Privacy Protection

Privacy has become a greater concern as our society moves further into the digital age. Your home business address will be a matter of public record, so if you want to keep it safe from prying eyes then it might be worth your time to invest in a registered agent. You will need to give out your address to any vendors or customers who want to get in touch with you as well. In this case, using your personal address can mean unhappy visitors showing up at your doorstep – something just about all of us would like to avoid.

What Are Your Options?

Don’t worry – there are more ways to get another address for your home business than by purchasing real estate. The United States Postal Service offers P.O. boxes for business mail going to sole proprietors or general partnerships, as well as physical addresses for LLCs and corporations. UPS offers similar services, too. But perhaps the best option is to hire a registered agent. A registered agent can provide you with a business address and handle your business mail, too.

Working from home is a lot more different than people think. You have to earn how to be productive in an environment that you probably think of as relaxing. That’s why we have a guide on productivity for home business owners and freelancers here.

Looking to start a business or grow your current business? Contact FL Patel Law today by visiting our website or calling 727-279-5037.