THESE ARE THE FIVE STEPS YOU SHOULD CONSIDER BEFORE YOU CAN SET UP A HOME BASED BUSINESS ANY WHERE IN THE WORLD

       THESE ARE THE FIVE STEPS YOU SHOULD CONSIDER BEFORE YOU CAN SET UP A HOME BASED BUSINESS ANY WHERE IN THE WORLD .

• What Legal Structure Will You Use To Operate Your Business? I have discussed this in other articles, but you must decide if you are going to operate as a sole proprietorship, partnership, limited liability company (LLC) or corporation. This decision will be affected by your need for liability protection, the number of people involved in your business, and the amount of paperwork you can tolerate.


• What Is Your Business Name? This will be determined in part by the legal structure of your business as described above. In any case, it is likely that you will need to first choose, then register your business name with your state and local governments in some way.


• Do You Need a Separate Tax Identification Number? In the United States this is also referred to as an EIN (employer identification number). If you are a sole proprietor and have no employees, it may be permissible for you to use your social security number as your tax ID number. Otherwise, you will probably need to obtain a separate tax identification number for your home based business.


• What Are Your State and Local Tax Requirements? The tax identification number referred to above is a federal identification number. You will also need to contact the appropriate agency of your state and local governments to find out what tax identification numbers they require, and what their other requirements are for such things as workers' compensation, unemployment insurance, sales taxes, etc.


• What Permits and Licenses Are Required? You will need to consider what permits and licenses you will need. This will vary based upon your location and the type of business you are engaged in. Many local governments require you to have a business or occupational license before you can operate legally within their boundaries. Certain types of businesses (health care, food service, etc.) require special licensing and permitting and this may be true at the local, state and federal levels.

Conclusion
Starting a home based business is a popular and effective way to get into business while at the same time keeping your initial overhead low. If you choose this route just be sure that you adhere to the required formalities and don't fall into the common error of ignoring these required steps for operating a business - home based or otherwise.