If you are thinking about starting an Alabama business, basing it out of your home is often the most affordable option. In fact, more than half of all U.S. businesses are based out of an owner?s home. However, it is important to understand that you must still take certain steps to ensure that your home-based business complies with all applicable state and local regulations.
One of the most important concerns is zoning. Some Alabama municipalities have strict rules on the types of businesses permitted to operate out of a home, particularly in residential zones. Therefore, it is important to determine if you can legally operate out of your home.
For instance, many zoning laws:
- Prohibit exterior physical changes to the home for the purposes of conducting business;
- Prohibit outside business activities, storage, or displays, and/or restrict or prohibit signage or commercial vehicles;
- Restrict the numbers of visitors to a home-based business;
- Restrict the number of employees working in the home or prohibit employees altogether; and
- Restrict business parking or require that additional parking be provided.
Luckily, many local governments are becoming more willing to work with small business owners that seek to work out of their home.
Another significant concern is insurance. You should contact your insurance agent to determine if your homeowner?s insurance will cover the property and liability involved in your new business. Often, you will be able to obtain a rider on your existing policy, but it?s always best to find out before you invest any significant money into your home business.
Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.
In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.
To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.
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