Operating a home-based business? Keeping you and your business safe should be a top priority.
There are some personal protections that are a must, and taking these precautions should be considered if you want to keep yourself safe and ensure your privacy.
Obtain an EIN
The first is obtaining an EIN — a federal employer identification number. And yes, you should still obtain this even if you do not have any employees. As a business owner, you are required to utilize your Social Security number on a variety of different forms unless you have an EIN. An EIN can be utilized in lieu of your Social Security number.
Getting a free EIN is very fast, easy, and you can click here to learn how to obtain one. This will allows you to avoid using your Social Security number on forms that go to the government, individuals and businesses.
Setting Up a Virtual Office
The next thing that you should consider is having a separate business address. Not everyone will be able to afford a separate office space and you might not even have the need for that expense. So how do you protect your home based business from using your personal address?
Businesses need to have a registered, tangible, brick and mortar address on file — you cannot utilize a P.O. box on things such as your business license, secretary of state filing, or other important legal documents. Virtual offices are a service that you pay for in order to have your business registered and listed on that brick and mortar store. Once you purchase a subscription for a virtual office, you can legally list their address as your business address on legal and government documents.
Setting Up a Google Phone Number
Consider utilizing a Google phone number for your business. This service allows you to simply re-route that phone number to ring to any phone that you want it to ring.
Ensure You Are Protected Legally
Ensure you have proper contracts in place for all of the customers and clients you are working with. It is well worth it to have a formal attorney review your contracts to prevent any potential incidents.
Obtaining a VPN
A VPN stands for Virtual Private Network, which is a service that protects your internet connection and privacy online. It creates an encrypted tunnel for your data which allows you to send and receive data across shared or public networks.
Purchasing Liability Insurance
Next is obtaining general liability insurance. If you are a service-based business who works with clients in person, or if you’re someone that has customers coming into a shop or into your home, you need to make sure you have liability insurance for your business.
You can obtain general liability insurance from most insurance providers provider s— minus through State Farm. For my business, I have a $1 million general liability insurance policy that covers my business wherever I go. Anytime that I work off site or I go to a remote location, I’m able to get my insurance agent to create and issue a specific certificate that covers my business at the address where I am working.
Want to learn more about how to protect your business? Watch the video here!