Why Having a Local Business Address is Important

Many small businesses, particularly sole proprietors with service businesses, do not have a professional business address but instead use their home address. However, there are some downsides and potential legal issues when doing so. Intuit spells out some of the more prevalent ones in a QuickBooks posting:

  1. Lease and HOA Rules.

    Apartment and condo complexes restrict the ability for residents to run a business out of their home (or in this case apartment or condo). Check your lease and home owners’ association (HOA) rules to confirm if there are any restrictions.

 

  1. Zoning Restrictions.

    Local municipality codes (zoning regulations) in some cities may restrict or prohibit home owners from running a commercial operation out of their homes.

 

  1. Liability Issues.

    LLCs and corporations may negate the benefits they received by forming a limited liability company or corporation. Those protections only apply if business and personal activities are kept separate. If the courts deem the two are intertwined, then you could be personally liable for business debts and obligations.

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