10 Steps Before You Start a Home Business

You'll want to research this issue carefully now, because your decision will affect your startup costs. It will also affect your tax situation and your personal liability for the actions and debts of the business. Leverage the IRS for free tax information on the various types of business entities.

Finally, your decision will largely determine what steps you need to take in order to set up your business when you're ready to do so.

More on legal issues for home business.

Index: 10 Steps Before You Start a Home Business

1. Step 1: Decide What Products You Will Sell or Services You Will Provide
2. Step 2: Know Your Market and Your Competition
3. Step 3: Make Sure You Can Perform the Tasks Needed to Run Your Business
4. Step 4: Make a List of What Needs to be Done to Prepare Your Home for Business
5. Step 5: What Restrictions Might Prevent You from Starting Your Home Business
6. Step 6: Plan to Protect Yourself, Your Home and Your Family
7. Step 7: Learn the Risks and Benefits of Each Type of Legal Business Entity
8. Step 8: Determine Your Startup Costs
9. Step 9: Consider Your Breakeven, Your Cash Flow and Your Funding Options
10. Step 10: Gauge Your Family's Support for Your Home Business