Legal Issues

Are You in the Right Zone?

Home-based businesses may face legal problems stemming from both their location and type of business. Local communities worry that home-based businesses will increase traffic, noise, or fumes in a residential area. Other concerns are the use of signs and parking for customers.

There are four main categories of zoning: agricultural, commercial, residential and industrial. Different restrictions regarding home-based businesses apply to each. In addition, each category is usually broken down into subsections, such as light industrial or single-family residential. Before deciding on a location, it is best to check out zoning regulations. There are federal, state, country, and city laws. Federal laws also cover types of products you can manufacture in a home. For instance, federal laws don’t permit the production in a private home of toys for resale.

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