Home-Based Businesses: A Guide to Creating the Ideal Home Office Space
Whether your current home office could use an upgrade or you’re in the process of launching your first home-based business, having the right office space makes a world of difference when it comes to impressing your clients and customers, boosting your productivity, and qualifying for the home office deduction at tax time. As such, it’s important to design an office that fits your personality, meets your business needs, and improves your work-life balance.
However, creating the ideal home office space isn’t always easy — especially if you’re already short on space or live in an area where home-based businesses are prohibited. And in some cases, your only real options are to move into a larger house or renovate your current home.
Below, are some tips for creating the perfect office space for your home-based business — whether you choose to redesign your existing space, renovate your home, or buy a new home altogether.
Do you need to make renovations to accommodate your home business?
Review Legal Restrictions
Before investing any time or money into your new office space, it’s important to review your local zoning laws, as some cities and towns restrict residents from operating businesses out of their homes. You may also need to obtain one or more licenses and permits, such as the following:
- General business license
- Professional license
- Health and safety permit
- Sign permit
If home-based businesses are prohibited where you live, you’ll typically have two options to choose from. As one option, you could apply for a zoning variance through your local zoning department. Or, if this isn’t an option where you live, you could buy a new home in an area that permits home-based businesses.
Next, you’ll need to familiarize yourself with the home office tax deduction. The TaxAct Blog can help you to understand the qualifications you’ll need to meet in order to claim the home office deduction at tax time.
Redesign, Renovate, or Buy
After you’ve reviewed the zoning regulations in your area, you’ll need to decide whether to redesign your current office space, renovate your home, or search for a new home altogether. Here are a few things to keep in mind as you explore your options:
- Redesigning a room. To upgrade your current home office space, try hanging designer wallpaper and shelves, filling the room with plants and artwork, and incorporating productivity-boosting colors like blue and yellow. It may also help to upgrade your office furniture, including your desk and chair.
- Renovating your home. If you’ll be staying in your current home but need additional space for your home-based business, a renovation may be in order. When building your new home office space, make sure you’re working with the reliable professionals at 3Rs Construction.
- Buying a new home. Start by researching home selling prices and trends in your desired area, keeping your square footage and other business needs in mind as you do. Then, enlist the help of an experienced real estate agent.
3Rs's Construction is here to help you design your home office space. Contact us for a consultation.
Make Things Official in Your New Office Space
Once you’ve settled into your new office space, you’ll need to choose a legal structure for your home-based business. Popular options include corporations, sole proprietorships, partnerships, and limited liability companies (LLCs), but the right legal entity for your business depends largely on which benefits are most important to you.
By forming an LLC, you’ll receive tax advantages, management flexibility, and a simple, hassle-free filing process. Plus, you’ll avoid costly legal fees if you use an online formation service. Learn more about the process with this guide from Zen Business. In some cases, however, a sole proprietorship, partnership, or S, B, or C corp may be best for your business.
Design an Office to Fit Your Needs
When you run a home-based business, you spend the majority of your time in your home office space — and you may need to invite clients, vendors, and other guests into your home. As such, it’s important to design an office that fits your personal and professional needs — or buy a new home altogether if your current space won’t accommodate your home-based business.
Contact the experts at 3Rs Construction to get a quote and schedule an appointment! 503-363-1059