How to Start a Business

residential neighborhood and vice versa, unless there is a change in zoning ordinances. Other considerations also come into play such as how you intend to use your facility, the nature of any renovations and so on.

odors, glare) • Prohibit use or storage of hazardous materials Business Activities – Many zoning codes prohibit certain types of businesses in residential areas. LEASING COMMERCIAL SPACE Leasing commercial office space is one of the largest expenses incurred by new and expanding businesses, so it is important to do your due diligence. Here are some tips for negotiating a commercial lease for your small business. Lease term and rent are your first negotiation points. It is generally recommended that small businesses negotiate one- to two-year leases with the option to renew. You will also want to factor in rent increases over the term and renewal options so you are not charged with an unexpected rent increase without warning. Consider working with a broker to help you negotiate with the landlord. It is also important to consult a knowledgeable real estate lawyer; they can often recommend the right choice for you and protect your interests as you negotiate your lease through the broker. In addition to your monthly lease payment, find out what expenses you may incur beyond rent. Commercial real estate landlords often incorporate extra expenses into the lease such as maintenance fees, upkeep for shared facilities (Common Area Maintenance or CAM), etc. Other expenses to consider are utilities. These charges are usually the responsibility of the tenant, so find out how these are measured. Are they individually metered or apportioned by square footage? Ask to see these “hidden fees” and policies as well as examples of costs that are typically incurred by tenants. Lease Agreement Expenses

Finding out How Property is Zoned

You can find out how property is zoned by contacting your local planning agency. One way to determine your local planning agency is to perform an internet search using the name of your community or city, your state and the term “planning.” Before getting too involved in a zoning issue, consider hiring a local land use attorney to help you through the process and ensure you are compliant. HOME-BASED BUSINESS ZONING LAWS Home-based business owners are subject to many of the laws and regulations that apply to other business owners. While home-based business zoning laws have loosened up heavily over the years, there are still some restrictions that you need to be aware of. Check with your local planning office if you are unsure whether any of the following restrictions apply to you: Restrictions on Physical Changes to the Appearance of Your Home – Most zoning codes: • Prohibit exterior physical changes to the home for the purposes of conducting business • Prohibit outside business activities, storage, or displays • Restrict or prohibit signage or commercial vehicles • Restrict the numbers of visitors to a home-based business • Restrict the number of employees working in the home or prohibit employees altogether • Restrict business parking or require that additional parking be provided External Effects or Nuisances – Most zoning codes: • Restrict or prohibit nuisance impacts (e.g., noise, Traffic Restrictions – Most zoning codes:

Maintenance and Repair

While residential leasing often places the burden of maintenance and upkeep on the shoulders of the landlord, commercial leases are different. Commercial 41