All states and local areas have their own rules on what they allow and what they don't and what you need and what you don't. I would suggest this:  Find a SCORE or SBDC office in your area and take your business plan to them.  They will help you develop your plan as well as help you with all the questions you have here.  They are local and thus know your local rules.  Plus - they are sponsored by the SBA and are FREE to use - did I say FREE to use.  You might as well use them - they are there to help. Plus, they can also help you develop a marketing plan - which will be pivotal in the success of your business.

As the one poster indicated here, there are many laws, regulations and rules, or the absence of them, depending upon the state you live in.  This may be the first biggest initial factor.    Check with the local city or county first, then see if there are state regulations.      Find out if you can have employees or inventory.   Some states will not allow any inventory, by the letter of the law.     Some states do not require a business license, but the county may require a license, or the city may require a license.   Find out if there are any rules for noise, as stated by another poster.    Maybe there are not any and if a neighbor complains, you may be O.K. and will not have to worry about such issues while working.   Will you be allowed to operate machinery in the home?  What about any exhaust fumes, garbage, some of these issues have already been mentioned.   What about safety regulations?     The question of raw materials is important.   Raw materials are not inventory, but are those allowed?     All of these questions, will  have to be answered otherwise the home scenario may quickly prove problematic. 

Insuring your properties is essential. You should select best local property insuring company which have good acting records and old trusted company.

Hi tlofurniture, Review the Business.gov page on Business Insurance. Business insurance, although good to have, is not required by law if you do not employ others. I would also take a look at the Types of Business Insurance, paying special attention to Professional Liability Insurance. As far as licenses and permits, the our Permit Me Tool to find out if you need any permits for your state. Check out the 10 Steps to Starting Your Business, just to be sure you've covered all your bases. If you have any other questions, please feel free to post them! BriaS 01-24-2011 11:20 AM