In residential only areas that are zoned specifically residential could put your proposed business into illegal status. For much of the US, zoning restrictions rule out home businesses which involve coming and going of foot traffic customers or employees. Many businesses that sell or even store anything for sale on the premises also fall into this category.

While you're in the planning stages, check with your local zoning authority to see how the ordinances in your particular locality may affect your business plans. You may need a special permit to operate your business from your home, and you may find that making small changes in your plan will put you into the position of meeting zoning standards.

Many local city or small communities grant home business permits for businesses that involve Online or teaching, but disapprove requests from photographers, interior decorators and home improvement businesses to be run from the home. More frequently, even if you are permitted to use your home for a given business, there will be restrictions that you may need to take into consideration. The most important is to work with your zoning commission and save yourself a lot of time and money.

One of the first requirements imposed might be off street parking for your customers. And, signs are generally forbidden in residential districts. For example, you want to teach from your home, there are limits on the number of students you may have at any one time.

To get a quick zoning approval for your business could be as simple as filling out an application, or it could involve a public hearing. The zoning officials will want to know the following:

- How your business will affect the neighborhood?

- Will it increase the traffic noticeably on your street?

- Will there be a substantial increase in noise?

- How will your neighbors feel about this business alongside their homes?

It is highly recommended you check into the zoning restrictions, and then check again to determine if you will need a city license. If you're selling something, you may need a vendor's license, and be required to collect sales taxes on your transactions. The sale tax requirement would result in the need for careful record keeping.

Licensing can be a lengthy process, and depending upon the type of business, it could even require the inspection of your home to determine if it meets with local health, building and fire codes. If your business shifts into this category, you will need to bring your facilities up to the local standards. And you may want to contact your insurance agent to make sure your policy covers the property and liability in your new business.