Your home business has taken off, and your realtor is helping you find a home that will accommodate more office space. If your dream home doesn’t already have a dedicated area for that purpose, don’t despair. With planning and a little creativity, you can consider several spaces for a home office. But you should start with some home and business owner basics. Read on for key tips.
Steps for Purchasing Your Home
First thing’s first: buying a new home to expand your business is exciting, however, it’s a process that should be taken carefully. Important steps include:
- Determining what you can realistically afford
- Obtaining loan pre-approval
- Working with a real estate agent
- Searching online for the home you want
Forming an LLC for Your Business
If you’re starting a new business, forming an LLC (limited liability company) is beneficial. It protects your home and other personal assets if your company were to be sued, it offers tax advantages and less paperwork than other entities, and there’s flexibility in sharing profits. You can avoid lawyer fees by filing on your own or using a formation service; check the rules in your state before proceeding, as regulations vary by state.
If you have a spare bedroom in your new home, it can be an ideal spot for your office. It has a door and probably a window for natural lighting, which, as Cherwell explains, makes a positive impact on your workday. Supplement natural light with well-chosen light sources that keep you energized on gloomy days.
Bedrooms have special advantages for home offices. You’ll be able to store inventory in the closet and add phone lines and outlets as needed. If you still want a spare bedroom, consider a Murphy bed to free up space.
The dining room is a popular choice for a home office. It’s an area that might be used only on occasion, especially if you have an eat-in kitchen. If you need to work where you can keep an eye on household members, its central location is convenient.
If you plan to use your dining room for eating, it can still serve as an office. Dining rooms tend to be fairly large spaces, so you should be able to set up a dedicated corner with a desk.
If your business requires more room than an office provides, the garage might be the best location. You’ll probably need to make renovations, such as adding insulation and lighting, but you will have space for production and inventory.
If you just want to use part of your garage for business storage, Investopedia notes you can mark off a designated area as part of your home office tax deduction.
If your real estate agent found you a home with a finished basement, you have a livable area that is probably big enough to hold your office. You may have enough room to spare for a play area, man cave or second living room.
If the basement is unfinished, you can consider remodeling it to your specifications and create a custom space for your business needs. Keep in mind that basements are susceptible to moisture, so any leaks need to be taken care of before you set up a work area.
An attic is out of the way of the main living area if you need privacy, and a home office is a good fit for this space that’s often not suited to other uses. Like basements or garages, attics may need to be insulated or weatherproofed before they’re suitable for working. You’ll also need to consider the structural integrity of the attic before adding the weight of drywall, subfloor and other elements of remodeling.
Finding a new home for you and your business is a big step forward, but it doesn’t have to be overwhelming. A local realtor can help you through the process as you continue your journey to success.