Home Based Business

Home Based Businesses Advantages of Home Based Businesses More efficient use of land Lower fixed costs (no commercial office space) Business owners save money and time since they don’t have to commute This also benefits the environment It also minimizes child care costs since owners don’t need to hire a babysitter Disadvantages of Home Based Businesses Difficult to separate household areas from work area Do not have friendship/camaraderie of office environment Difficult to stay informed if not in contact with peer group

Home Based Businesses Zoning Home based businesses are normally allowed in multiple dwelling and residential detached units Municipalities will not allow interruption or taking away from overall residential environment in neighborhood Zoning by-laws govern use of home as an office Bi-laws include: Maximum floor area that can be used for business Operations such as: No exterior alterations No outside storage of business equipment No delivery through large trucks Employees only permanent residents of area

Home Based Businesses Special Rules Type of business restrictions Municipalities can enact rules related to health professions such as doctors and dentists that let them run an office in a detached home They must provide for signage, separate entrance, parking facilities etc. Type of business restrictions Preventing certain types of enterprises that cannot operate as home based businesses such as fabrication, food preparation, manufacturing etc. that are not consistent with residential areas

Home Based Businesses Insuring Home Based Businesses Permits Owners should check with insurance broker to find out extent to which home based businesses are covered Most home insurances do not cover: Personal liability for injuries sustained by employers, clients, customers, maintenance people and suppliers Business-related inventory and supplies as well as any separate structures used to store such items Business equipment and related improvements to the property Permits Permits necessary for alternations/renovations, including building permits and electrical installations permit