Here are some general areas to watch out for, but be sure to consult an attorney and the state department of labor to find out which laws and regulations will affect your business. Be aware of your city's zoning regulations. If your business operates in violation of them, you could be fined or closed down. Certain products cannot be produced in the home. Most states outlaw the home production of fireworks, drugs, poisons, explosives, sanitary or medical products and toys.
Some states also prohibit home-based businesses from making food, drink or clothing.
In addition, there are registration and accounting requirements to consider. Your business's name may need to be registered with the state. Usually, a sales tax number must be obtained. A separate business telephone and bank account normally are required. Complying with minimum wage and employee health and safety laws.