Question about running a business from you home (Round Rock, San Diego: lease, insurance)

[shaxs]

Hello,

I have a quick question about running a business from your home. I have an internet based company providing business based web tools to small companies. This is all done virtually and I work from my house. Hence why I am moving to Texas from Cali since I can run it anywhere. Anyways, the company was funded and I am thinking about hiring one employee. Is it against city laws (I know this depends on a specific city, but lets talk in generalities here) to have a home office and also have an employee come work in that office? There will be no clients coming by or anything like that, just one employee coming to the house to work.

I would like to do this until we grow to the point of needing a real office as office space in Texas is not cheap like housing. Why is that by the way?

[Synopsis]

That's a good question. I wouldn't think it would be a problem as you are "under the radar" so to speak about being a business that falls under these guidelines. I think the number 14 comes to mind. However, you may want to be careful about who you bring into your home as someone may be able to sue you for sexual harassment or such if there is ever an incident. If it's a trusted friend or colleague I don't see a problem. But, I'm not any kind of expert on the matter.

[shaxs]

Thanks Synopsis! I'm thinking about hiring my best friend. I was the best man in his wedding. He told me if I can match his salary, he and the wife would move to Texas in a heartbeat. Luckily He doesn't make that much His wife is originally from Texas and wants to move back. So, it would really be a family thing.

I totally have thought about liability. I do have liability insurance, but I guess I would need to get that changed to the new place. Because I am funded, the startup pays for office space, so the house might be leased to the company name so I can continue to use funds to pay for part of the house. Here in San Diego I have a live /work condo with retail on the first floor and a 2 bedroom condo on the second and third. It only costs $2100 a month....OUCH. Hence why I want to move to Texas to find something more affordable.

[changeofpace]

Have you ever heard the phrase "It is easier to ask for forgiveness than to ask for permission"? Don't tell anyone and make sure your employees care is in your driveway and not on the street. If it is not obvious, it will be fine more than likely. Jealousy rears its ugly head more often than not, so anyone complaining will be more than likely jealous that you "get to work from home".

[shaxs]

No, but that is a good phrase

[teatime]

I don't think you'll have a problem. I used to work as a private contractor for a newspaper from my home. Sometimes I would conduct interviews at my home but I mostly was out and about and would just type my stories and edit from home. The newspaper provided me with a computer and phone hookup that transmitted the stories right to the editors.

Where the problems lie -- and what cities care about -- are parking and traffic. They don't want cars piled up and parked in a residential area and an increase in traffic. But your business doesn't have those issues.

Don't forget that you can deduct the percentage of the house you use for business on your taxes!

[texasdreamin]

The general rule for most municipalities is a person with a home occupation cannot have employees coming to the home. It's that way in the city I reside, as well. Only members of the household are allowed to work in the business, at the home. You need to check the municipal code for the city or county you are in. It will spell out all of the rules. You should be able to find it under the Title section for "Zoning" and then search for "Home "occupations" The URL, below, is a copy of the Home Occupation brochure for Round Rock. I didn't know where you live, otherwise I would have searched for your area. Just google municipal codes for home occupations in Texas. Good luck.

http://www.roundrocktexas.gov/docs/h...onbrochure.pdf

PS...no one would even know this person visiting your residence was an employee, nor would they know you have a home occupation...unless you tell them. Keep your business to yourself and do not impact the neighborhood and you probably won't have any problems. You should be able to carry it off until you get the funds for an office.

[Talia62]

If you can work from home, why can't this guy you're wanting to hire work from his home too? Solves your problem.

[shaxs]

He definitely could. Maybe we will just have "meetings" at my house. I just prefer working next to employees so we can bounce ideas off each other and be creative.

[Poltracker]

Be careful about putting the house under the business name though, it has serious tax implications. Check with a Texas CPA before you do anything like that. I don't believe you can take your homestead exemption if you do that and that adds up to $$$. There are other issues with that as well.