Work From Home Business

Written by Adam Blau
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There are several ways you can set up a work from home business. The first and easiest way is to gain employment with an established company that can set you up to work for them from your home. This way, you will be considered a traditional employee of that company and will garner all or many of the same benefits as employees in their brick-and-mortar operations.

If, instead, you plan to operate or create your own work from home business, there are many other factors to consider. Running a business from your home can be significantly more rewarding, but there are a number of time-consuming legalities that you should address if you are to succeed. The most important of these comes in the form of protection for yourself, either as an LLC or an S-corporation.

Protection for the Work from Home Business

Imagine a worst-case scenario in which someone sues your work from home business for some reason. Now imagine that you haven't set the business up in such a way as to protect your personal assets from that case. If all goes dreadfully wrong, you may have a scenario in which your own personal finances, house, car, and other valuables are put in jeopardy because of something that has gone awry in your business.

This is where the LLC and S-corporation come into play. These are structures that essentially set your business up as a separate identity and protect your own personal finances from any undue harm. The LLC ("Limited Liability Company") and S-corporation (a specific type of corporation frequently used by small businesses) operate differently, and each has its own unique tax advantages and government requirements. It is recommended that you thoroughly research each of these and consult an accountant and attorney as you begin your endeavor into these business realms.

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