Can You Start a Business From Home?

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Crucial Information You Should Know Before Starting a Business

Over the past few years, the number of new businesses starting up has reached an all time high. Just in 2021, the American public applied to launch 5.4 million. These new companies come in all different shapes and sizes, some run by single entrepreneurs and some with numerous employees already. One concern that most, if not all, of these new businesses share is where they elect to run their business. Some immediately search the market for available office space near them and some decide to run their business out of their home.

The issue with physical office space is that it can be expensive and could lack the flexibility that many business owners desire. With this, and other concerns in mind, many new businesses opt to run their company from their home, but what are the steps to take to ensure that the business can grow and thrive, even from home? Below are some of the main considerations an entrepreneur or business owner should know before working from home.

Is your home ready to run a business?

One of the first questions you should ask yourself when considering starting a home based business is if your house is even suitable for you to work out of. When starting up, you need a dedicated space where you can solely focus on your business, whether it be a basement, separate room, or computer station. You also need to ensure that you can limit distractions in this space, as in no interruptions from kids, pets, or anything that can disrupt your flow of business.

Another question you should ask yourself is if you are simply disciplined enough to work from home. When you know that a bed, food, TV, and other distractions are just a few steps away from you, it can be quite troublesome to focus on your craft. Branching from that point, will you be able to separate your work and personal life while working from home? All people should keep a good work-personal life balance, and this becomes much more difficult when working from home.

Home-Specific Issues

There are many potential issues that can arise from running a business out of your home, many stemming from the need of a business address. When filing legal documents or renewing licenses for your business, you need to list a business address. You are able to list your home address, but there are many issues that can come as a result of this. Once you list your address, it immediately becomes public for anyone to view, which can lead to many unwanted visits and guests showing up unexpectedly. This is obviously both a privacy and safety concern as you may never know who could show up at your doorstep while trying to work and live peacefully.

Another risk associated with listing your home address as your business address is an increase in cyber security threats. As we are constantly becoming more and more of a virtual world, cybercrime is becoming a larger issue. When you have your home address listed for your business, you are making it easier for criminals to access your personal information as they can link it to your business.

Lastly, the use of a home address as a business address is prohibited in certain situations. You need to become familiar with local housing and renting regulations in order to ensure that it is even legal for you to start a business at home.

Our Recommendation

Now that we have listed some information about if you should start a business from home, we can offer some suggestions on ways to get around many of the problems previously addressed. If you decide that you will not be able to focus or separate your work and personal life while working from home, then we would recommend looking into a local office or coworking space. Although it may not be cheap, if you are determined to start your own business and want to see it grow, then a separate space where you can exclusively focus on work is a highly recommended option.

Next, if you decide that you CAN work from home but are worried about the privacy and legal issues that may come from registering your home as a business address, then we would recommend that you register a virtual office. A virtual office is part of the flexible workspace industry that provides businesses with any combination of services, space and/or technology, without those businesses bearing the capital expenses of owning or leasing a traditional office. Almost always, these services will give you a business address so you do not have to register your home address. Virtual offices are also much less expensive than any physical office or coworking space so it may be the perfect option for you!

All American Business Centers offer all three of these office types at prices you cannot find anywhere else, so if you are looking to start a business and need any type of office space, allow us to be your partner to success!


All American Business Centers is located in Bellagio of Lakeside (13854 Lakeside Circle, Sterling Heights, Michigan). To reserve your workspace or find more information, call (586) 580-4977 or visit

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