A home-based business is subject to many of the same laws and regulations affecting other businesses. Be sure to consult an attorney and your state department of labor to find out which laws and regulations will affect your business. For instance,, be aware of your city’s zoning regulations. Also, keep in mind, there are certain products that are prohibited from being produced in a home environment.
Most states prohibit home production of fireworks, drugs of any kind, poisons, explosives, sanitary or medical products or toys.
There are also registration and accounting requirements. You might also need a work certificate or license from the state (depending upon what type of business you are starting), a sales tax number, and a separate bank account.
If your business has employees, you are responsible for withholding income and social security taxes, and for complying with minimum wage and employee health and safety laws.
Susan A. Comko CPA LLC can help you with all of these.