This is a work by a guest blogger, Lance Cody-Valdez.
Working from Home
Working from home has become an incredibly popular business model for modern-day entrepreneurs. But if you’ve been taking advantage of the flexibility and convenience of running a home-based business, you know it’s not all sunshine and rainbows. Storage problems, household distractions, and in-home client meetings can all pose a challenge to the home-based entrepreneur. At some point, you might consider upsizing into a bigger living space. Here are some tips to help you navigate this transition as you give your business some room to grow!
Work with an Experienced Brokerage
Buying a home that will double your place of work requires careful consideration. You’ll need to think about the needs of both your family and your business as you explore different locations, home layouts, neighborhood amenities, and other important elements in the home-buying process.
A reputable brokerage such as Miami Beach Brokers® will provide valuable insights and guidance throughout the entire process. They can also help you navigate any potential roadblocks that may arise during the process, such as legal issues, financing challenges, or unforeseen property defects. And perhaps the best part, working with a broker will save you time and mental bandwidth so you can focus on your business!
Consider Additional Insurance
Before upsizing your home, consider how this move will impact your home insurance coverage. Depending on the type of business you run, you may need to purchase additional coverage to protect against liability claims or property damage related to business activities that take place at your home. You may also need additional coverage if your business operates out of a separate structure on your new property, such as a detached garage or workshop.
Keep in mind that typical home insurance policies only cover damage to the home’s structure. If a home system or appliance requires repair or replacement, you’ll be on the hook for these costs unless you have a home warranty. A home warranty could be a great investment if you’re buying an older home with appliances and systems that are likely to break down or require repairs. Check this out to learn more and determine if a home warranty is right for you.
Review Zoning Laws and Regulations
Your local zoning laws and regulations dictate how your property can be used and what types of businesses are allowed to operate there. Be sure to research the county and municipality zoning laws where you want to buy a home to ensure your planned business activities are permitted. For example, Chron explains that some areas restrict the amount of space that can be used for business purposes and may require special permits or licenses. Working with a real estate agent or attorney who has experience with home-based businesses can be helpful in navigating these regulations and ensuring that your business is operating legally.
Take Care of Home Business Fundamentals
As your home-based business grows and requires more space, it becomes increasingly important to establish an appropriate legal structure to protect your personal assets. According to Due.com, forming an LLC is a popular option for home-based business owners.
Beyond shielding your personal assets, an LLC will offer tax flexibility, which can help you optimize savings at tax time, as well as business credibility, which can make your home business appear more professional to potential clients, suppliers, and partners. To save some money, take advantage of online business formation tools to get your LLC underway instead of hiring a lawyer. You can find plenty of information about your state’s LLC rules and regulations online!
If your business has grown so substantially that it’s time to upsize your home, this can be a very exciting time. Approach this process with careful planning and consideration to ensure you make the right choice! By working with experienced professionals, obtaining the necessary insurance coverage, and shielding your assets with an LLC, you’ll be setting up your new home office in no time!
Disclosure:
This post is for informational purposes only and is NOT to be considered or taken as tax advice, legal advice, or financial advice. Miami Beach Brokers®, Christopher Lazaro, and Metro International Investments are not registered financial advisors, nor are they licensed lawyers, nor are they certified public accountants (although, we can refer you to some of the best in each profession!).
When considering taking doing ANYTHING legal, tax, or finance related it is highly recommended you seek out licensed professionals in good standing with their respective licensing authorities and trade organizations.
Are you looking for a home in Southeast Florida? Specializing in the Miami and Miami Beach real estate markets, Miami Beach Brokers® (now Brokered by eXp Realty) can help you find the perfect home for your family and business! Call 305-871-9728 today!
