Legal Issues to Consider With Home-Based Businesses

Home-based businesses have become more and more popular—a result of the 2020 COVID pandemic, which necessitated such businesses becoming more popular. Home based businesses are legal; pursuant to a 2022 state law, counties or cities are no longer allowed to completely outlaw them.

But that doesn’t mean there aren’t legal considerations when operating your home based business.

Zoning Problems

While home based businesses can’t be outlawed by a city or county in Florida, that doesn’t mean that zoning isn’t a consideration.

Counties can zone in ways that affect, but don’t completely outlaw, home based businesses (so long as the zoning laws apply to both home and non home based businesses). Some businesses you may not have to worry about, but other specialized or more controversial industries, or industries that may deal with chemicals or hazards, or those where there is a lot of foot/car traffic, may encounter issues in their home based businesses.

Note that some businesses can almost never be run as a home based business. As a general rule, professionals and professional services, small manufacturing and personal services all can be operated from a home based business.

Parking Problems

Businesses where parking is an issue can also be restricted. The parking at a home based business needs to be the same as other residences in the area, which have no business being run out of them. And local governments do have leeway to restrict on-street parking or the use and storage of larger vehicles or heavier machinery or equipment.

Insurance Problems

Insurance is a big issue—especially if you have foot traffic coming into your home. Your standard homeowners liability policy does not cover injuries or losses, for business traffic. That means that you’ll need to include it, or else, obtain a separate insurance policy.

Don’t Forget the HOA or Condo Association

Even if your home business is 100% legal in every way shape or form, you may be overlooking your HOA rules and regulations. These regulations remain in effect even despite the law change, and business owners need to review their HOA documents to ensure they aren’t in non-compliance.

Don’t Forget Your Neighbors

And of course, none of these legal issues, even if you attend to them, preclude lawsuits from neighbors. This would likely only happen if your business were to intrude on their rights—say, excess parking on their property, or damage to shared, common areas, or your customers or clients damaging your neighbor’s property—but it’s still a consideration for some.

Stay Within the Requirements

To truly be considered a home based business, your business must have no more than 2 employees or contractors (not counting the residents of the house itself). More than that, and you can be restricted from running a home based business. Remote employees don’t count—you can have as many as you like.

Let us help you establish, and keep legal, your home based business. Call the West Palm Beach business law attorneys at Pike & Lustig to help you with your business.

Source:

flsenate.gov/Laws/Statutes/2021/559.955