Business & Finance Corporations

How To Operate A Home-based Business

Do you have a business idea or concept and wish to make it into a viable home-based business? Do you already have a business with a separate office but are now considering operating that business from home? If you answered yes to either question and you live in Gwinnett County, Georgia, you need to what is involved in setting up and operating a business out of your home in Gwinnett. This article provides you with the information you need to set-up and maintain a home-based business. However, most of the actions below apply to any home-based business but the examples are specific to Gwinnett County, Georgia.

Register your business with the Secretary of State.
Unless you intend to operate your business as a partnership or sole proprietorship and use you (or your partners) social security number for the business, you must first register your business with the Georgia Secretary of State. You can operate a sole proprietorship or partnership without registering, but you leave yourself open to liability and a host of other issues when you do not operate your business as a completely separate entity. You can register as a limited liability company (LLC) or as a corporation. On the Secretary of State site, search existing names to make sure the name you want is not already taken. Then complete the online registration process for either an LLC or corporation and remit payment. You should hear back in a few days. If there is a problem with the registration, you will receive a letter in the mail telling you what steps you need to take to correct the problem. Otherwise, you'll receive your Certificate of Incorporation (corporation) or Certificate of Organization (LLC) in the mail.

Obtain a tax identification number from the IRS.
Go to www.irs.gov and follow the directions for obtaining an Employee Identification Number (EIN). The IRS will provide you with a temporary EIN as soon as you complete and submit the online form. The IRS will send the permanent EIN confirmation in the mail. In almost all cases, the permanent EIN equals the temporary EIN. You can use the temporary EIN to register the business.

Obtain a Gwinnett County business license.
In order to operate your business in Gwinnett County, you must be licensed. The initial licensing is more of a registration. Download the business license application form, Gwinnett County Initial Business /Occupation Tax Application, from the Gwinnett County website. Alternatively, you can call or visit the Licensing & Revenue office located in Lawrenceville, Georgia. As the home-based business owner/partner/member/officer, your home address MUST match the address on your Georgia drivers license or identification card. You MUST include a copy of your drivers license or id card with your application. The instructions are clear and easy-to-follow. Complete and sign the application. If you submit the application in person, you will be told how much you owe. Otherwise, you will be billed. Once you pay, you will be issued a Business/Occupation Tax Certificate. This is your license.

Check the zoning laws in your area.
Gwinnett County generally allows you to operate a business out of your home if you have traffic flow that does not disrupt your neighbors. A small beauty or barber shop, daycare center, and similar entities are allowed. If you have an internet-based business or always meet your customers at Starbucks, do not worry about zoning. If you do have large numbers of vendors or customers or a number of employees who work out of your home, make sure that the traffic flow and activity are not disruptive. Otherwise you may run afoul of the zoning laws. If it becomes a nuisance to your neighbors, you'll need to meet these individuals off-site or rent office space elsewhere. If you are concerned about receiving numerous or large packages, you can rent space at a UPS Store or PakMail or similar mail facility that uses suite numbers instead of P.O. boxes. (FedEx and UPS do NOT deliver to P.O. boxes.)

Obtain liability insurance.
If you have employees, customers, and/or vendors come to your home, make sure you and your business have sufficient liability insurance coverage to cover any accidents or incidents.

If you have a limited liability company or corporation, renew your company registration with the Georgia Secretary of State annually. You can do so online. Make sure that you file for your business license annually and remit any tax payments according to your business earnings. Notify Gwinnett County if you move. If your business grows, ensure you are still compliant with the zoning laws in your area. If not, seek out options like those identified above.

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