Your small business is a wild success; in fact, it’s doing so well that you’re running out of room in your home office. Paperwork consumes your desk, and packing containers are threatening to swallow your dining room table whole. Now what? There are far worse problems to have than a business that’s become so successful you no longer have sufficient space for it in your current home. When this happens, there are two items that should sit atop your to-do list as a small business owner.
Expand Your Base of Operations
Time is money for virtually any business. If your home office has become cramped due to increased products, paperwork, packaging materials, or even people, consider expanding your physical space to meet the needs of your work. An overstuffed office is an inefficient one. It may be time to buy a bigger house.
A burgeoning business is one of many reasons why people move, but it carries its own set of considerations. Before you meet with a professional from Texas’s premier real estate agency, ask yourself the following questions to improve your home search:
How much square footage do you need for your home-based business right now? Do you anticipate that increasing in the future?
Do you need storage areas, such as for manufacturing or shipping materials?
How many people do you employ? If you don’t employ anyone at present, will you in the future?
What’s your home buying budget? How much of a down payment can you afford?
Are you willing to make repairs to a property? What’s your budget for that?
Your answers to these questions can help you narrow your search before you and your Realtor at the Jones Team start the property-viewing process.
In addition to streamlining your home search, taking stock of your needs, wants, and finances can also help you be realistic during this exciting transition. If you’re open to repairing a house that piques your interest, for example, it’s imperative that you’re clear on what “as-is” means when you purchase that charming old ranch-style home. A leaky roof and other structural defects, mold, and pest infestations are all concerns that might be tucked under an “as is” disclaimer. A Realtor can help you negotiate proposed repairs as part of your contract.
Form an LLC
Working with a realtor and being both specific and realistic about your home business expansion are two wise ways to protect yourself as an owner. Forming a limited liability corporation is another.
An LLC establishes you and your business as separate entities and protects you from having to personally cover losses incurred by your business. It also reduces the amount of paperwork you have to do. While LLCs share many of the same benefits that corporations do, one crop of obligations you don’t get with an LLC is paperwork-heavy tasks such as annual reports, shareholder meetings, and various fees.
Forming an LLC also imparts a handful of tax advantages, including specific small business deductions and pass-through taxation. The latter allows small business owners to be taxed on their business’s profits as individuals, without the double taxation that corporations typically face.
These tax advantages and other regulations governing the formation of an LLC (or another business structure, such as a corporation or partnership), vary by state, so do your homework before committing. Skip lawyer fees by filing yourself or enlisting the help of one of the many LLC formation services available online.
Owning a small business means making decisions and reacting from moment to moment. When it’s clear that your operations have outgrown your office, consider investing in the future of both your business and your family by creating ample room to protect your assets.