Dealing with Zoning Laws for Your Home-Based Business

Are you breaking the law simply by starting a home-based business? It is necessary to research your city's zoning laws or you could put your business at risk.

Here are some helpful hints that will help you determine if your business is complying with the applicable zoning laws.

Zoning laws may be determined by your city or your county, depending on where you live. Find out which government body maintains your zoning laws and familiarize yourself with these regulations. That way, you will be prepared to deal with any issues that may arise.

If you plan on running a home-based business that will have no employees and no walk-up trade, the zoning question may never arise. Problems with zoning laws commonly occur with home-based businesses that deal with the public or that have non-family-member employees who work out of your home.

More often than not, it's complaints from neighbors that bring home-based businesses to the attention of zoning boards. If employees and customers are seen going in and out of your home, making noise, or taking up parking spaces that would normally be used by residents, you can expect to be brought up before the zoning commission.

Your hours of operation may also be an issue. If you are open early in the morning or late at night, you may disturb your neighbors. Talking to your neighbors about your business ahead of time may help allay their fears. If you meet with some initial resistance, you may be able to avert disaster through negotiation.

In addition to neighbor complaints, you can also run into trouble if the amount of space your business takes up in your home is greater than the actual living area. This is referred to as “space percentage,” and while it can be difficult to determine exactly how much space your home business occupies, it can lead to a zoning issue.

The type of merchandise you are selling may also be restricted in a residential area. This commonly only applies to businesses dealing with chemicals, such as fertilizer, but it may affect other types of business as well.

Simply posting a sign for your business on your lawn may be a breach of zoning laws. Of course, this depends on your city or county's zoning regulations. Before you post a sign, read up on signage laws in your area.

If you are not happy with your current zoning laws, you may be able to find other business owners who have similar concerns. If there are changes that need to be made, try organizing your local businesses in a campaign to change your zoning laws to make them more favorable to home-based businesses.

Read "Legal Issues for Home-Based Businesses" and, if you own rental property, "Zoning Basics for Landlords."