Austin TX Business Law Blog

Sunday, October 31, 2021

Can You Run a Business from Home in Texas?

There are many benefits to running a business from home. Think about it. Starting a business out of your home will immediately cut down on your start-up costs. Office space can be expensive and working from home can be a great way to save. Plus, you get to work from the comfort of your own home! Think of the flexibility, not to mention the general creature comforts you can enjoy as well. If you have considered the benefits of working from home, you are likely wondering whether you are even allowed to run a business from home in Texas. We are here to answer this question for you.

Can You Run a Business from Home in Texas?

At the state level, there is no specific ban on running a business from home in Texas. It is, however, very important to check your local zoning laws to verify whether you are permitted from running a business from your home. The good news is that, most of the time, you can operate a business out of your home. The caveat being that your business activities cannot have adverse impacts on your neighbors. If that is the case or becomes the case, you may be prevented from continuing to run your home-based business pursuant to local zoning laws. To check to see if there are any specific types of business activities that are prohibited in your area, go to the city or county clerk’s office to check local ordinances.

Once you have verified that it is okay to run your business out of your home, it is time to set up your business. You will need to choose your business name and register that name with Texas. Many home-based businesses, however, are established and operated as sole proprietorships. This makes for an easy setup as there is no particular paperwork that must be filed. While there is ease in establishing a sole proprietorship, however, you also have personal liability exposure for business losses as you and the business are considered to be one and the same.

You will also need to obtain any necessary state licenses and local permits required of your business. There is no general requirement in Texas to obtain a business license. Certain regulatory agencies may, however, require certain licenses and permits for your business depending on your business type as well as what products or services your business intends to sell. There may also be county and city permits you need to obtain to run your home-based business. An occupational permit may be required. In fact, the Governor’s office makes it clear that it advises all Texas businesses to get in touch with local city and county governments to see if there are any other specific requirements that must be met to legitimately establish a home-based business, or any other type of business, for that matter.

In addition to all of this, you must be mindful of things that all business owners need to be aware. For instance, learn about the tax responsibilities you will have as a business owner. Develop a marketing plan, and much more. A marketing plan can be even more important for home-based businesses. The fact that businesses run out of the home lack a store front and, thus, lack this visibility, can mean that marketing efforts must be that much more robust.

Business Law Attorney

Are you planning to set up a business run out of your home? Let the Kumar Law Firm help set you up for success. Contact us today.

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