"In Home" Studio Laws

[Ursula]

Okay well soon I will be moving and I'm trying to figure out whether I'm getting a bigger place to pursue my indoor studio for the wintertime. However, my mother says there's laws about that. :evil: So I called the chamber of commerce but they were not very helpful at all. They told me to go to the tax place and fill out some forms. I just want my question answered...

Is it legal to operate a studio inside the home for profit?
(1 bedroom sized room with 3 lights and a computer)

And if it isn't who here does and hasn't gotten caught? lol! :p

If not, I think I'm going to just go to their home and do it with wireless strobes. Hmm..

[AussiePup]

More than likely that is a local ordiance, so yo are better off checking with the local municipal offices. Or possibly if you are moving to a place that has some sort of Homeowners Association it could be a by-law of the HOA. Most of the time those are put in place because they dont want to see the traffic associatied with an in-home business and the fact that they miss out on the business property taxes, which at least in Michigan are higher than residents.

Typically unless you are having high trafic volumes or nosey neighbors you should be ok.

[ducko]

yes, what aussie said is quite accurate. If you live in a town or city you need to check with the local government business laws. You also need to get a business license if you don't already have one. Then you can check with your HOA and see if they have anything about it. Typically they don't like to see you working on cars (eye sore) or making food for a profit (health department issue). I can put in a studio and profit from it, if I got a license.

[Rubi Jane]

There's also the insurance issue. You need to check with your home owners policy and see if such business activity is covered, or can be added for a reasonable premium cost. You'd want to make sure you have liability coverage at the least, and ideally equipment loss & replacement.

[ducko]

There's also the insurance issue. You need to check with your home owners policy and see if such business activity is covered, or can be added for a reasonable premium cost. You'd want to make sure you have liability coverage at the least, and ideally equipment loss & replacement.

Man! I didn't even think about that. Good point.

[Ursula]

Yeah I think I'll just be taking the shooting at their location route instead for now. Because my plan was to live in a "nice home community" type area I'm sure there's plenty of nosey neighbors there. No matter the fact that I would be advertising my business on my car and probably passing out magnets/cards around the block.

Well thank you all :)

[sandpiper]

Man! I didn't even think about that. Good point.

All sorts of things need to be considered. I'm not sure about the US, but here in England all sorts of problems can arise.

As part of your home will now be business premises, that part will have to comply with business health and safety rules (fire escapes etc.). In the UK, smoking in business premises (or adjacent rooms) is now banned, so those over here with a home studio are now banned from smoking in parts of their own home.

Also, if you move, your home is likely to have increased in value over time. As part of your home is business premises, you may find that a percentage of that increase becomes classed as business profit, which may well result in a fair bit of tax to pay.

[asysin2leads]

On an up-side, you can write off a portion of the business on your taxes. You need to check with your local zoning board about home-based businesses. Usually there aren't any issues. Someone mentioned the HOA. If you have one, they might require that you don't park cars on the street without their permission. They really don't have much to say about a home-based business. The HOA doesn't regulate that. They might, however, have regulations regarding signs in your yard (advertising) or things like that.

[MaDProFF]

I live in the UK, I think it is mostly common sense, you are entitled to conduct certain amount of business as a Self Employed Person at home, but of course if you have loads of people daily around, then you would be expected to declare. Neigbours are generally the biggest problem
as for Insurance that is a different matter, and certainly you need to look into liability insurance.

Good Luck

[Bursar]

You also need to check your mortgage, as their might be a clause or two in that about operating a business from the house.

[AB8ND]

I've been operating a tool and die design business, just me self employed, from by home in Michigan for 12 years. The thing my city wants is a piece of the pie in the form of personal property taxes on my equipment. I haven't let them know I also take pictures so they haven't come for my camera equipment yet. Technically one isn't supposed to operate a business in an area zoned residential, but as long as the traffic or noise isn't a problem and the local governments get some tax money they never complain. One big thing my cousin ran into with a dog grooming business was that she put a very small sign out, soon finding that this was a no no.

Jack

[John Mireles]

As others have pointed out, the ordinances pertaining to home based businesses will vary from city to city. Where I live, you can legally operate a business from home, but you cannot have employees and you can't have clients coming to your home. Any form of signage is a big no-no. As a practical matter, the law is not enforced unless someone complains.

Until we moved our business into our studio, we had two full-time employees and plenty of clients coming and going. We're in an older neighborhood though so things are a little looser around here. I could see people being a little more uptight in a new HOA type neighborhood.

We did get a little bit harassed by the code inspector who visited us in response to a fence that we built too high. He started asking questions - to which I played dumb - and then made us get a business license. No big deal - but we kept our employees hidden when he came by.

As far as the insurance requirement, you should just plan on getting commercial business insurance. That's as much a part of doing business as having a camera. In a homeowner's or renter's policy, there is an exclusion for any liability arising from the business pursuits of the insured. That means if a potential client comes over and trips on your doorstep, it might not be covered unless you have a commercial policy.

John

[Longwatcher]

First, just to mention that a large percentage of cities and towns have the ordinances posted on the web in a searchable form these days - start with google.

In my city the ordinances state I can have a home business but am limited to no more then 400 SQ FT of space desginated specifically for the business. On top of that no more then one additional car is allowed to be in front of or parked at my house on business related business. Also I specifically can not have a photography studio in my zoning area without a waiver. And lastly I have to have a business license and tax permit to be legal (which I do ) .

I get around the zoning, by not having a permanent studio and my living room is only my living room at least 50% of the year. Meanwhile I am still looking for a very cheap semi-permanent studio space - but only because it would look even more professional then using my living room.