Starting a business at home - Do I need a Business License? (Austin: sales, rental)

[Shredding_Gnar78]

After talking with a friend who received a large inheritance, we are thinking about hiring a few people and starting a home based business. We're toying with the notion of having a few workstations at my house, and will hire about 5 people or so to start.

Do we need to have some sort of business permit to do this? I know at my other jobs, I've seen posters that display labor laws and regulations. We don't want to get in trouble with the city/state.

[Austin97]

Originally Posted by Shredding_Gnar78

After talking with a friend who received a large inheritance, we are thinking about hiring a few people and starting a home based business. We're toying with the notion of having a few workstations at my house, and will hire about 5 people or so to start.

Do we need to have some sort of business permit to do this? I know at my other jobs, I've seen posters that display labor laws and regulations. We don't want to get in trouble with the city/state.

if you have an HOA you are probably prohibited from running a business from your house.

How can you make a small fortune starting your own business? Start with a large one.

I would recommend not hiring any people to start out with.

[jbiggs]

Most all businesses will require some form of licensing whether it is a local license/registration and/or a State license/registration. One good place to start is the Texas Secretary of State WEB site Texas Secretary of State. Here they will provide various information on starting a business here in Texas. You should also check with your local city and county regarding the need for any type of licensing/registration they might require.

Without more information on the type of business you want to start it really would be difficult to give more specific information.

[Shredding_Gnar78]

Its going to be a sales lead generation model. We have a rough sketch for our plan and are trying to figure out costs, hence the question of if we can save money by not having an office space.

[Austin97]

Originally Posted by Shredding_Gnar78

Its going to be a sales lead generation model. We have a rough sketch for our plan and are trying to figure out costs, hence the question of if we can save money by not having an office space.

You might want to look at VOIP systems that let people work from home (or from anywhere)

You can record the calls. When we used a service like that it was great to have a website where we could log in and actually hear the calls linked to the online record of the opportunity. You can also do things like get automatic transcriptions of the call so clients can do text search or read transcript of the call.

[Lunawink]

You should also check out tax information with an attorney and accountant regarding employees/independant contractors - there could be huge implications depending on how you desire to construct your business plan. Also, make sure you and your friend have a clear agreement in writing on your goals/plan - that way in case all the money is lost and the business is not successful, there are no issues and everyone is on the same page.

[CptnRn]

See these City of Austin zoning requirements for a Home Business.

City of Austin - Zoning Frequently Asked Questions

14) What are the requirements to be considered a home occupation? [/SIZE]

Home occupations accessory to residential uses are subject to the following limitations:

1. The home occupation must be conducted entirely within a dwelling unit which is the bona fide residence of the practitioners, or entirely within only one accessory garage building (not to include a carport).
2. No person other than a family member who resides in the dwelling unit should participate in the home occupation on the premises.
3. The residential character of the lot and the dwelling unit must be maintained. Neither the interior nor the exterior of the dwelling should be structurally altered so as to require compliance with nonresidential construction codes to accommodate the home occupation. No additional buildings shall be added on the property to accommodate the home occupation.
4. The home occupation should not generate customer related vehicular traffic in excess of three vehicles per 24 hour day in the residential neighborhood.
5. No direct selling of merchandise is allowed to occur on the premises.
6. No equipment or materials associated with the home occupation can be displayed or stored where visible from anywhere off in the premises.
7. The occupation must not produce external noise, vibration, smoke, dust, odor, heat, glare, fumes, electrical interference or waste run-off outside the dwelling unit or in the property surrounding the dwelling unit.
8. No vehicle used in connection with the home occupation is allowed to be parked on the premises or on any street adjacent to the residentially zoned property.
9. The home occupation is not permitted to be advertised by any signs on the premises, nor shall the street address of the home occupation be advertised through signs, billboards, television, radio or newspapers.
10. No animal hospitals, animal breeding, clinics, hospitals, contractors' yards, dancing schools, junk yards, lodging house residential uses, massage parlors, restaurants, rental outlets or vehicle repair shops are permitted as home occupations.

[Don in Austin]

Originally Posted by Shredding_Gnar78

After talking with a friend who received a large inheritance, we are thinking about hiring a few people and starting a home based business. We're toying with the notion of having a few workstations at my house, and will hire about 5 people or so to start.

Do we need to have some sort of business permit to do this? I know at my other jobs, I've seen posters that display labor laws and regulations. We don't want to get in trouble with the city/state.

The very first question is: What is the home address zoned?

No way you can do this legally if zoned strictly residential. "Hiring a few people" requires commercial/office zoning. Some people get away with operating a business with employees out of a residence by virtue of the fact that zoning enforcement is complaint driven, but its pretty risky.

You can attempt to get a variance or get the zoning changed, but that is not easy.

Don

[BentBow]

If it is just you and your buddy and the checks to be written to you in your name, there is no reason to DBA. Your liability is going to be the big persuasion.

Now, as soon as you hire employees, everything changes.
It would be best to DBA and incorporate, as a LLC or a S1. An accountant can help you out which best serves your needs.


I run my business from my home, but I do not have walk-in business. I go to them.

No one even knows I have a profitable business from my home in the neighborhood, except close neighbors. My garage is my warehouse.


Give me Liberty, or give me Death!

[JayBrown80]

Originally Posted by Shredding_Gnar78

After talking with a friend who received a large inheritance, we are thinking about hiring a few people and starting a home based business. We're toying with the notion of having a few workstations at my house, and will hire about 5 people or so to start.

Do we need to have some sort of business permit to do this? I know at my other jobs, I've seen posters that display labor laws and regulations. We don't want to get in trouble with the city/state.

How are you planning on filing taxes for this buisness?

Does your friend wish to be able to protect his/her initial investment in the buisness, since it comes from his/her inheritance? Should your buisness fail, or you and your friend decide not to be friends anymore, are you willing to lose any say or ownership in said buisness, since it's your friend that is bankrolling it and basically "owns" everything?


Why would you start a buisness with someone else and not consult a lawyer to protect his/her investment and your ownership in said buisness?