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Running a business from home - implications?

  • 08-09-2010 03:20PM
    #1
    iMax
    Closed Accounts Posts: 3,489 ✭✭✭


    Hi guys,

    Currently starting up & for the first couple of months/year I will be working from home.

    What implications will this have for the family home ?

    Do I need commercial insurance (there will be stock in the house but only during the day while being packaged & shipped)?

    Do I have to pay rates on the property ?

    Do I have to inform anyone ?

    Can I claim anything in terms of electricity/heat/broadband/phone & pay "the household" from the company ?

    Thanks in advance.


Comments

  • #2
    JonJoeDali
    Closed Accounts Posts: 537 ✭✭✭JonJoeDali


    iMax wrote: »
    Hi guys,

    Currently starting up & for the first couple of months/year I will be working from home.

    What implications will this have for the family home ?

    Do I need commercial insurance (there will be stock in the house but only during the day while being packaged & shipped)?

    Do I have to pay rates on the property ?

    Do I have to inform anyone ?

    Can I claim anything in terms of electricity/heat/broadband/phone & pay "the household" from the company ?

    Thanks in advance.

    Do you fancy health and safety inspectors showing up at your house? Or having to install "emergency lighting"/fire extinguishers?

    Not only that, there are very serious tax implications when you go to sell your house.

    It's very messy. Some people do it. Personally, I prefer a clean break between home and office. There's also the psychological factor.


  • #3
    J_Wholesale
    Closed Accounts Posts: 245 ✭✭J_Wholesale


    You need to provide more information. A business that involves employees working from your home and clients visiting your home is very different from you working for yourself via a PC and a telephone.


  • #4
    Fergal C
    Registered Users, Registered Users 2 Posts: 298 ✭✭Fergal C


    JonJoeDali wrote: »
    Do you fancy health and safety inspectors showing up at your house? Or having to install "emergency lighting"/fire extinguishers?

    Not only that, there are very serious tax implications when you go to sell your house....

    Personally I wouldn't let those factors put me off without investigating if they would affect the particular business in mind. Lots of people start businesses from home without running into any of those problems.

    iMax what type of business would you be running from home? E.g. would you be holding stock, having clients visiting, making noise, etc, etc?


  • #5
    Acoshla
    Closed Accounts Posts: 5,729 ✭✭✭Acoshla


    JonJoeDali there are loads of varying businesses operating from people's homes with little or no problems, someone is trying to start a new business, and the first thing you do is shoot down everything they say? Without knowing what kind of business it is none of us know what regulations the OP would face.

    OP if you go to your Local Enterprise Board they will advise you as best they can and give you information or point you in the right direction for the info you're looking for.

    Myself and a friend are both running businesses from home, two entirely different businesses, and the different rules etc that we face are incomparable, so don't let anyone put you off (or give you false hope) until you've spoken to someone who knows about the area you would be working in.


  • #6
    CCfiles
    Closed Accounts Posts: 8 ✭CCfiles


    Hi Imax,

    I am an insurance underwriter so I will answer that segment of your query.

    If you do not take out commercial insurance any equipment or stock directly related to your business is not covered under your standard home insurance.

    You also face liability issues. This relates to customer/suppiers/delivery staff visiting your home/office on a commercial level, again this is not covered. If someone injures themselves you could face a hefty claim.

    Product liability also may an issue depending on the line of business your in.


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  • #7
    J_Wholesale
    Closed Accounts Posts: 245 ✭✭J_Wholesale


    CCfiles wrote: »
    Hi Imax,

    If you do not take out commercial insurance any equipment or stock directly related to your business is not covered under your standard home insurance.

    But a 'home office' is covered by most home insurance policies. I checked this out in detail when I bought my policy. The coverage is usually enough to cover whatever computer equipment a single worker might need - PC, lap top, netbook, printer, scanner, router, etc.

    The difference between a home office and an 'office office' is almost non existent these days.


  • #8
    iMax
    Closed Accounts Posts: 3,489 ✭✭✭iMax


    Thanks for the replies so far. OK, for clarification, I'm going into online retail. I will not be holding stock (or very much stock) overnight.

    I will primarily be using a "Home Office" to run the business & intend on packaging orders in the house before posting that evening. Right now there will only be me employed in the company & it will be me "delivering" & "shipping" the orders. As soon as time/success would allow, I intend on moving it into a more permanant "space". My objective is to keep costs low initially.


  • #9
    J_Wholesale
    Closed Accounts Posts: 245 ✭✭J_Wholesale


    iMax wrote: »
    Thanks for the replies so far. OK, for clarification, I'm going into online retail. I will not be holding stock (or very much stock) overnight.

    I will primarily be using a "Home Office" to run the business & intend on packaging orders in the house before posting that evening. Right now there will only be me employed in the company & it will be me "delivering" & "shipping" the orders. As soon as time/success would allow, I intend on moving it into a more permanant "space". My objective is to keep costs low initially.

    My advice would be to jump in and not worry about anything like insurance, rates, etc. for now. Chances are you won't even break even to start with, and you might shut up shop before you ever do, in which case, worrying about business rates and electricity bills would be moot. This actually happens a lot: small businesses starting and folding without anyone being any the wiser.

    Keep all your bills, and go see a local accountant in January (if you're still in business). Time enough to worry about breaking down those bills and paying tax at that point.


  • #10
    Fergal C
    Registered Users, Registered Users 2 Posts: 298 ✭✭Fergal C


    J_Wholesale wrote: »
    My advice would be to jump in and not worry about anything like insurance, rates, etc. for now.....

    I like that advice. Figuring out who your customers are and how you can satisfy them profitably should be your primary concern at this time.

    Good luck with it!


  • #11
    mneylon
    Registered Users, Registered Users 2 Posts: 7,740 ✭✭✭mneylon


    Be careful with the zoning. Some housing estates are zoned in such a manner that ANY commercial activity is not allowed, so you could get headaches if you're taking deliveries etc.,

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  • #12
    BnB
    Registered Users, Registered Users 2 Posts: 1,091 ✭✭✭BnB


    J_Wholesale wrote: »
    My advice would be to jump in and not worry about anything like insurance, rates, etc. for now. Chances are you won't even break even to start with, and you might shut up shop before you ever do, in which case, worrying about business rates and electricity bills would be moot. This actually happens a lot: small businesses starting and folding without anyone being any the wiser.

    Keep all your bills, and go see a local accountant in January (if you're still in business). Time enough to worry about breaking down those bills and paying tax at that point.
    Very good advice there IMO.

    Just put all your time and effort into getting the sales in for now and finding out if this business is a serious runner. No need to be creating costs where they don't need to be. After a few months, you can review the situation.


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