When Establishing a Home Office, Should You Buy New or Remodel?
When you have dreams of running your own business from home, your first reaction is likely to evaluate your current space. Is it big enough? Can you actually run a business from home without violating zoning regulations? How can you ensure your business’s success in this space? These are all fair questions, and ones you should answer before you decide on whether to buy a new home or remodel your existing space to fit your professional plans.
Buying a new home makes a lot of sense if you have equity in your current property and need a larger space. Determine the value of your current property and your remaining mortgage, which will give you an idea of how much cash you have to work with to put down on another. You should also confirm that your city or county will allow your type of business to operate in a residential zone. Chances are, if you simply need a home office and don’t plan to meet with clients, you can more or less relocate anywhere.
Next, you’ll want to take preemptive steps to separate your personal finances from your business’s cash flow. Do this by forming an LLC, which also has tax advantages and reduces your personal financial liability if your business begins to struggle. Forming an LLC is not complicated, and you can typically use a formation service and file on your own. Zen Business outlines the steps required to form an LLC in Washington and explains that this will start by registering a business entity name.
In some cases, staying where you are is the most family and budget-friendly option. This is especially true when you already have space, such as a garage or walk-in attic, that you don’t use. Remodeling a garage or other unfinished area can be expensive, and you can expect to invest thousands of dollars to make it right. That being said, it is still less expensive than spending hundreds of thousands of dollars on a new home.
Before you begin such a large undertaking, consult with numerous contractors for quotes. You’ll also want to confirm that their license is up to date and verify that they carry liability insurance.
With doing over 50 transactions a year and helping her clients remodel homes, Kari Haas is an excellent person to support you in a remodel. Whether it is bouncing around ideas or providing trusted referrals, Kari Haas is there to help you.
Many of us simply don’t have the funds to buy a new home or renovate an existing space when we are also starting a business. This doesn’t mean that you can’t work from the comfort of home and have a creative and productive space from which to do so. Look around at your current setup. A spare bedroom, bonus room, or even large walk-in closet can easily be turned into a home office. A desk and chair, overhead lighting, and a strong internet connection may be all you need to get started.
When you’re ready to make your move to home-based entrepreneurship, you have options. Whether you choose to buy a new home, renovate your existing space, or stay put, you are getting ready to start a brand-new adventure. No matter the choice, be prepared, plan your budget, and get ready to get to work.
This post was originally submitted by Tina Martin and has been edited by the Kari Haas Team. Tina is the creator of Ideaspired.com, where she helps people follow their dreams and be their own inspiration.