Dear Sara:
The "wait and see" attitude could certainly cause problems down
the road, and it is not a suggested way to start a business. At the very
least, you need to make sure you can do what you want to do out of your
home....via city, county and state regulations. Some residential areas are not
zoned for home-based businesses and you could lose a lot if you were to begin
your business without making sure you are legal. I would make sure you have
approval from the local agencies by at least filing a d/b/a (doing business
as) form with your city/county offices. Additionally, I would never start a
business without consulting my attorney and my income tax advisor, as well as
my insurance agent. What if you were held legally liable for something you
did? You are at risk for losing your home, future income, etc. That is not a
recommended practice.
Marketing is a major factor in being successful. You can create and work a
contact list from the very beginning, but, I do not recommend performing
business tasks until your business was properly set up.
You need to find out if you must charge sales tax, in your
city/county/state for your services. Some states require it, even on
consulting. If that's the case, you will have to have that paperwork filed and
the forms at-the-ready to fill out.
You can always start with a d/b/a and move up and forward with
that...incorporating later on (or many other options).
Hope this helps!
Best,
About the PowerHomeBiz.com Guide:
Tammy Harrison is a successful
home-based working mom for over five years. She holds a degree from Mizzou in
Consumer Economics. Her business focuses on Marketing as well as numerous other small
businesses. For more information, you may contact her at