What if I want to start a home-based business and I live in a condo or co-op?

The United States supports free enterprise, which means that anyone has the right to start a freestanding business or home-based business on his or her own without owning a piece of property. The law states that as long as your business isn’t disruptive to peace or unsanitary in nature, all businesses, including your home-based business, are legally protected. However, you must comply with zoning laws and/or with the rules and regulations of your condo or multi-family housing unit when starting a home-based business.

The Rules for Home-Based Businesses

If you live in a multi-family housing unit such as a condominium or in a co-op situation where other people are co-owners of the property you inhabit, you may not have the same opportunities for a home-based business as those who live in single family houses. Condominium housing units usually have bylaws and rules, much like a homeowners association, and these bylaws are all legally upheld. In other words, if you moved into a condo and you knew the rules and signed the deed anyway, the courts are going to enforce any obligations created by the bylaws or association rules. This means if the bylaws in your condominium unit’s association state that no home based businesses may exist, you may not have the option of keeping your business in your home.

Other Considerations for Home-Based Businesses

In addition to being aware of all condo bylaws, you also need to be aware of any and all city ordinances where you live regarding the types of businesses that must be placed in commercial or industrial zoning areas. You could very well lose your business if you move forward with your business plans in an unauthorized area, so don't act without being informed.