Wednesday, April 04, 2007

Is Your Home Business Legal?
Copyright © Rahimah Sultan

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To ensure that your home business is legal, there are several things that you must do besides hanging out your shingle to advertise you’ve opened. There are stringent state and local rules and regulations with respect to the formation of a business, and failure to follow these legal guidelines could result in a variety of problems that could be costly.

For example, while you know that you are required by law to observe important health and safety codes when opening a home beauty salon, did you know that you need to obtain specific licensure from the state and county to do so? Beauticians must be well qualified and licensed by the agency that oversees this type of business before they can work in a large salon or for themselves as part of their home business. Make sure you have the required licenses and that they are displayed in the manner directed by the agencies.

Another area that many home business owners don’t understand or neglect is insurance. While you most likely carry some homeowner’s insurance, do you also have insurance for your business? Do not think that your homeowner’s policy will cover the fall of a customer. As a matter of fact, many policies specifically exclude home businesses from their homeowner coverage. Thus, it is imperative that you not only read your policy and understand its limitations, but that you also understand what kind of coverage you will need to protect yourself and your clients.

For notaries public, bonding is another tricky question that many home business owners may not understand. The same could be said for any other kind of business that carries the risk of making errors that could result in extreme legal consequences. To safeguard your personal assets and those of your business, it is wise to have the proper protection, in case of a lawsuit.

Another home business legality to be considered is the one of signage. If you live in a covenant controlled community, you will already be familiar with the regulations regarding what is or is not permitted. However, the city and county may also have rules and regulations regarding the size, color, and number of signs advertising your home business. Failure to comply with these rules could result in costly fines and a loss of your signs! So, before hanging out your shingle for business, be sure you’ve checked out all the legalities and that you’re in compliance so that your home business is legal.

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