Zoning Laws and the Home--Based Accountant.

• Author: Seipel, Cindy

While more accountants than ever are working out of their homes, many of these home-based accountants are unaware that they may be in violation of the local zoning laws. The following actually happened to a CPA with a local practice. It was mid-March and the CPA was busy preparing tax returns in her home. Business was very good, and her home-based business was growing rapidly. In fact, it was growing so rapidly that she had to hire two employees, one full-time and one part-time, to help prepare returns. More and more clients were coming by the CPA's home to pick up tax returns or to drop off information. One day the doorbell rang and the CPA answered the door, expecting a client. Instead, the man at the door said, "I am with the City. I have a cease-and-desist order stating that you have two weeks to end the business you have been conducting in your house. We have received complaints from one of your neighbors about the traffic generated by your business. Check the city zoning laws-home businesses must meet certain requirements." Despite the looming tax return deadline and all the related demands on her time, the accountant was forced to find a new location from which to conduct business within the two weeks she was allowed by law.

Many home-based accountants may unknowingly be in danger of encountering situations such as the one above. The zoning laws in a number of cities are very restrictive, having been written before the recent boom in the number of home-based businesses. In addition, the laws vary greatly from city to city. Therefore, any laws that the home-based accountant may have encountered in another city will probably be different from those that he or she is currently subject to.

Some zoning restrictions that the home-based worker might find are as follows.

Limit on number of employees. The number of employees allowed ranges from no nonresident employees allowed to an unlimited number of employees. Most commonly, though, cities limit the number of employees, other than residents of the premises, to one or two. When a city's laws are at the most restrictive end of the spectrum, the home-based accountant who employs any type of nonresident helper, even during the busiest months, may be in violation of the zoning laws of the community.

Limit on noise or traffic. Another type of zoning restriction that may affect a home-based business is a restriction against offensive noises or traffic. A provision such as one allowing no more...