The first
thing you need to do is contact the municipality in which you
live and find out if it has a Home-Based Business By-law that
affects your business. For example there are very specific
rules if you are living on land that is zoned
"agricultural". Save yourself time and money. Don't
make any decisions or purchases until you find out if you can
operate the business at your intended location. Check with
your municipal office first! Of course there are some types of
business that are not suited to be operated out of the home.
In the City of Peterborough these businesses are not
permitted to be a home based business:
- a
restaurant
- a
home day care which is required to be licensed pursuant
to the Day Nurseries Act
- an
office of a veterinarian
- a
taxi service
- a
public garage
- a dog
boarding kennel
- a
commercial dog kennel
- a
salvage yard
Please be
aware that the Canada Customs and Revenue Agency (Revenue
Canada) is cracking down on Home Based Businesses as far as
allowable deductions are concerned. Your office or place of
business must be located within it's own separate area that is
not used for any other purpose-a computer in the family room
does not qualify as a home based business for deduction
purposes. In fact the amount of time you spend in that office
is now a factor in the allowable deductions calculation. If
you have any questions or concerns check with C.C.R.A or a
chartered accountant.
At the
Business Advisory Centre most of the Home Based Businesses
that we deal with are service providers such as professional
consulting or if they are selling a product, the product sales
are generated "off-site" through mail order, the
Internet or craft shows. The customer does not come to the
business owner's home. If the business expands or employees
are hired it may become necessary to lease a larger space. For
other home-based businesses "Home Sweet Home" is the
only place they will ever need. Just remember not to answer
the door in your pajamas if you have clients or delivery
persons stopping by!
 Tip:
If you do not have a separate phone line for your business
at the very least change your answering machine message to
reflect that it is a business for a more professional
appearance. Friends and family will know that it's you!
For more
information regarding Home Based Business or other business
related questions please contact:
Business Advisory Centre
210 Wolfe Street
Peterborough, ON K9J2K9
(705) 743-0777 ext. 225
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