This story appears in the
May 2002 issue of
Startups.
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The regulations on needed licenses and permits vary from city to
city and state to state, so the best thing to do is go straight to
your local city hall or Chamber of Commerce office to ask about the
legal steps involved in starting your homebased business.
You'll also need to check with your city's zoning
department to find out about any zoning restrictions that would
prevent you from operating a business from your home. As for taxes,
this will depend on how you register your business--i.e., as a sole
proprietorship, a corporation, a partnership, for example. For more
information on setting up your business, see "Keep It
Legal."