Legal Question in Business Law in New York

Home business for e-commerce

Hi:

I am thinking of creating a e-commerce web site and need (want) to create a LLC . I want to work out of home. However it seems that the zoning law does not permit business use of my home (only residential use).

1. From a legal point of view, what constitutes home business? In my case, my business activity would consist mainly in �intellectual� work (designing site and making decision for improvement later on) and communications with business relationships (mainly freelancers) over telephone/email. There will be NO clients/employees coming to my home, no shipment received/made, no physical activity etc.

2. When I file the paperwork to form my LLC, can I pick an official address for my company that is different from my home address (for instance address of private mail box or that of a registered agent)?

Any good clarification would be so appreciated. Thank you.


Asked on 4/22/06, 3:48 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Home business for e-commerce

1. If you are doing work from home in a zone that permits only residential use of your home, be ABSOLUTELY CERTAIN that no clients come to your home and that you aren't cluttering up your home or on the lands around your home with business-related materials (inventory, etc.). Meet clients elsewhere. You are, of course, free to use your computer, make your site plans, call anyone you please (although you may not be able to get your number listed as a business number which would knock you out of phone company advertising such as the Yellow Pages), and perform any other non-client-contact work from your home. Remember that the IRS allows you to write off any business use of your home, but keep your business use well documented and keep the workspace separate from the rest of the home.

2. Your LLC's address can be any address to which the Secretary of State can forward any process served (i.e., if someone sues you, the Secretary is routinely designated as an agent for service of process; the Dept. of State has to have an address to which to send the papers). A PO box is ok; a physical address is best. You may be able to use your attorney's office address for service of process; talk with him/her about whether s/he permits this.

Good luck with your new business!

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Answered on 4/23/06, 2:12 am


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