Business Management News

The latest news relating to Business Management
Business Management

Ask The Experts: Home Office Transition

Q: I've been a licensed professional counselor and marriage and family therapist for 21 years, and I've been in solo private practice since 1999 and have always rented office space. My wife and I are in the beginning stages of looking into arranging for me to work out of our home. Could you please provide us with any ideas or issues we need to be paying attention to in this endeavor?

A:Your question breaks down into three areas: technical
considerations, effect on your family, and practice identity (image). As for the technical side, you need to look into local ordinance and/or registration, effect on your home owner’s insurance, construction, operating costs, tax considerations, etc.

The second, the effect on your family, is yet to be revealed. While operating a business from the home has some sound basis and sounds good on the surface, some people do not do well being so close to the home. It depends on personal relationships, kids, neighbors, and other factors. Having been in an outside office atmosphere for 21 years and making a considerable financial investment into the project, it will be very important that you do everything you can to be sure that operating your practice out of your home is a workable situation. Locating the business in an area of the home that is only used for that purpose and setting rules about work hours and family interactions during work hours are also important.

The third component is actually the most important—your clientele. Particularly in a professional position such as yours, some clients may place an image value on you by operating out of your home. If it is a common practice in your area it probably is not an issue. However, if the professional population operating out of their homes is small in your area, you could see reluctance of clients to accept it. A lot depends on the neighborhood you will live in, your existing clientele, where you get new clients from, and numerous other issues.

Gene Fairbrother, Business Strategy Expert


Get More Answers

The NASE’s small-business experts are here to help
you understand the ins and outs of operating a successful small business. And access to these professionals is free with your NASE Membership!

Just go online to the NASE’s Business Learning Center where you can ask the experts questions about:

  • Taxes                                  
  • Marketing
  • Financial issues                
  • Employee relations
  • Accounting rules             
  • And much more

The experts are available 24/7 and ready to help!

I’m getting ready to do my self-employment taxes—what should I do first?
Can I hire my child?
What can I do to avoid being audited?
Should I take the home office deduction?

Everyone has a lot of questions during tax time.

Get the answers to yours and other tax tips from the NASE’s tax experts during live webinars.

Spaces are limited - register today!

Share This Page...

Related Videos...

  • NASE Benefits At A Glance

    As a NASE member you have access to MANY benefits designed to help you with your business needs. In this video John Hearrell talks about how to quickly see just what is available to you.
    Posted on Mar 28, 2018 by John K. Hearrell
  • How to Deduct the Business Use of Your Vehicle

    Will you be prepared at the end of the year to take your vehicle tax deduction? Are you keeping a mileage log in case of audit?
    Posted on Jan 10, 2018
  • NASE Business Benefit Overview

    Through your NASE membership, you will unlock countless doors that lead directly to one goal: Providing you the tools and resources needed to have a true business advantage in the marketplace.
    Posted on Jan 10, 2018
  • New Business - What Tax forms do I need?

    Now that you have started a new business, what additional tax forms do you need to have? Keith explains the differences in various tax forms.
    Posted on Jan 10, 2018
  • New Business - Different Types Explained

    What type of operating structure and entity form will you use; Sole Proprietorship, Partnership, Limited Liability Company or Corporation. Remember, the decision you make will not make a material difference in your overall tax liability.
    Posted on Jan 10, 2018
Want to see more related videos?  Click here 

Related Blog Posts...

Want to see more blog posts?  Click here 

Still Have Questions?

Ask The Expert