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There are certain times when you need the knowledge of an attorney: divorce when you’re being sued and (surprisingly) when you’re setting up shop. This is an aspect of small business ownership that isn’t as widely talked about.
However, if you’re just dipping your toes in the world of buying or renting property for small business use, it pays to consult with a zoning law expert. Otherwise, you might be in for a serious headache.
Zoning laws vary depending on county, city and state. Whether you work in workers’ comp or operate a budding florist business, finding the right place to start your business is critical.
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Remember that zoning laws exist to protect everyone, although it may seem like their only purpose is to make finding your dream location a nightmare. Re-zoning is often impossible, so don’t bother looking at properties that aren’t zoned for the purpose you’re intending.
Limit Your Property Shopping
You might think you’ve found the perfect renovated Queen Anne for your massage business, but it’s zoned as residential. A good real estate agent will only show you properties that fit your zoning needs.
However, things get blurry when you decide to blend business with pleasure (or home life with work life). A home business is easily the most complex when it comes to zoning laws.
A certain percentage of your home qualifies as home business space. You’re also restricted in terms of employees, income and the amount of traffic you generate. After all, you wouldn’t want your neighbor to suddenly open a nightclub in their basement. It’s important to abide by the laws of a home business in order to keep a symbiotic relationship with your neighbors and the IRS happy.
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Understanding the Basics
It’s no surprise that legal jargon is seemingly impossible to translate; however, knowing a little of what it means can be helpful. The major codes you need to know are R, C and RC. R is residential, C is commercial and RC is the dreaded residential-commercial combination of home businesses.
These letters come with numbers, and the lower the number the lower the allotted density. For example, R1 is a low-density, single-family zone that you likely live in if you own your own home.
Small business owners are probably dealing with low-number C or RC zones. A C1 business if your mom-and-pop dry cleaning shop down the street. However, a C16 business is that mega complex where the city’s biggest companies take care of business. It’s pretty tough to find a high-numbered RC zone, which is why so many home businesses stay small.
Don’t Go It Alone
You can learn a lot about zoning laws from a little research. However, it’s still best to have a zoning law attorney by your side. This is especially true if you’re considering a property that has never had a business similar to yours before. There might be a bundle of red tape you don’t see coming until it’s too late.
Enjoy the safest route by choosing a location that is properly zoned and has housed similar businesses. Understand the risks of a home business, and consider if that’s really the route you’d like to take. Leave the legal issues to the professionals and focus your efforts on opening shop.
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00When you make the decision to establish a business, you’ll quickly find that you have quite a task.
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Published on July 26, 2023
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