Location

Rules and regulations dictate what types of businesses may be run from a home depending on location. Access copies of local zoning regulations by visiting the public library, law library or city hall. Some areas may be zoned for home-based businesses not involving walk-in traffic; other neighborhoods may permit businesses to welcome customers to their homes. Depending on zoning rules, home-based businesses may be prohibited from producing certain types of goods because of noise, pollution or safety concerns due to chemicals. Condominium neighborhoods may have homeowner rules restricting home-based businesses, and some leases may contain rules restricting business activity in rental houses.

Licenses

Home-based businesses are subject to the same types of licensing rules and requirements as businesses run outside of the home. You’ll still need a business license, tax identification number and liability insurance. Some types of home-based businesses (for example, childcare facilities or auto repair) may require additional professional licensing from relevant state departments. Barbershops and beauty salons also require additional licensing.

Outfitting Home

Business rules for sanitation and safety apply to home-based businesses, so expect to invest some time and money gearing up your home to meet health standards. For example, home-based catering businesses may be required to install a separate oven and cooking area for catering cooking so that it remains separate from meals prepared for the resident family. Childcare businesses are subject to regulations for fencing, play area footage per child and other safety concerns.

Other Regulations

Home-based businesses face additional regulations. Some rules strictly limit the number of employees to a small handful to reduce traffic or business size within the neighborhood. Other rules may prohibit vendors from delivering goods to your home-based business, since this can also be disruptive or dangerous. Rules may restrict your hours of operation to avoid disturbing neighbors. You may also be prohibited from hanging distracting signage from your home. Businesses run from home are also affected by tax rules; certain items may be tax-deductible depending on use while other home improvements or parts of the house may be considered irrelevant to business.