These include things like not having to commute, wearing what you want, and setting your own schedule. If you've spent much of your life working for an employer outside of your home, you'll likely enjoy the lifestyle advantages of running your work at-home business. If you regularly meet customers at your home, or if you use a separate building located on your property to conduct your business (provided you use it regularly and exclusively) then you will also meet the principal place of business requirement. If your home doesn't meet this specific principal place of business criteria, there are two alternatives to the criteria. To be a principal place of business, you must conduct administrative or management duties related to your business at your home and you must not have any other fixed location where you also perform these tasks. The second criteria requires your home to be your principal place of business for your home-based LLC. But if you use your dining table as a work table and it never sees personal use-you and your family use your kitchen table instead-it would qualify as exclusive use. Exclusive use means you cannot allow the space to be used for anything personal.įor example, if you use your kitchen table as a work station during the day but at night you and your family eat there, it wouldn't qualify as exclusive use. Regular use means you use it consistently for work. How do you qualify for the home office tax deduction? First, the part of your home you're using for your home-based LLC must be used regularly and exclusively for your business. This includes a portion of your rent or mortgage interest and other home-related costs, such as utilities. If you meet certain requirements for the home office tax deduction, you'll also be able to deduct a percentage of the costs of running your home as a business expense. You're paying for your home anyway, so if there's room for you to operate a home office as well, running a home-based business may well be the answer, especially when you're just starting out. It's much easier to start your business without the burden of a high lease payment looming over you each month. This cost factor is an important consideration especially for start-ups.

Low Costįor most business owners, the main attraction of running a home-based business is the low cost.

Here are a few more ways that starting your business from your home makes sense - especially in the beginning. When starting something new, it's always a good idea to take advantage of resources you have at your disposal. Have you registered an LLC and are now considering running your new business out of your home?Īs with any home-based business, there are both advantages and disadvantages to running an LLC from your home.

Using office home for business