Do You Need A License? Regulated Industries... Learn More About It...

I once knew a guy whose great idea for a home business was to run poker tournaments from his house. Needless to say, that didnt last long once the police heard about it.

If you think youve got an idea thats going to make you big money, there might be a reason why everyone else isnt doing it and that reason could be related to the law. Many types of businesses are strictly regulated and controlled by governments.

Gambling.

However fun and profitable it might be to put fruit machines in your house, run a mini card casino or just invite the local old people over to play bingo, its almost certainly illegal without a license. Gambling is an industry thats almost always strictly controlled it might be fine to gamble privately with your friends (or, depending on where you live, it might not be), but as soon as you start running it as a business youre on very dodgy ground. Youll also find that most places have laws against for-profit lotteries sorry. Applying for a license to turn your home into a gambling premises is unlikely to succeed. If you wonder why, consider what would happen if people in your area could do that. It wouldnt be pretty.

Alcohol.

Yes, it seems odd to some people that you need a license to serve alcohol after all, you can invite people round to your own house for a drink perfectly legally, cant you? As soon as you start charging them for those drinks, though, the nature of what youre doing changes drastically in the eyes of the law, and youre going to need a license. If you dont get one, then you could be heading off to jail for quite a while.

Again, youre going to have trouble getting an alcohol license for your home, unless youre holding some kind of event there and the drinking is just incidental. Alcohol licenses are usually subject to appeals from people who live near the premises being considered, and you can guarantee that your whole neighbourhood is going to turn out to say what a bad idea it would be.

Medics.

If you plan to do anything medical, then youll probably need a license. When I say medical, I mean doctors, dentists, opticians, and even vets. You might think itd be fine to turn your home into an animal hospital, but you need to be qualified and licensed. Of course, if youve previously been a doctor, dentist, or whatever, then you shouldnt have too much trouble getting licensed to do the same thing from home.

Children.

People get jumpy around children, and youre very unlikely to be able to look after any as part of your business without jumping through all sorts of hoops. Just to be a nanny, there are all sorts of courses to take and regular inspections to go through. If you ever wonder why theres a shortage of small-scale childcare, its because its so hard to keep within the rules while making any profit.

Food.

If youre going to sell food, you usually need to register, for hygiene and safety reasons imagine if just anyone could sell you food, without any checks! For various reasons most local government agencies are especially strict if you plan to handle raw meat. Its usually fine to sell cooked meat, but raw meat is considered more dangerous. Food licenses arent too hard to get, anyway, provided you have a relevant hygiene qualification and youre willing to have your kitchen and products inspected at regular intervals.

More.

This list is nowhere near exhaustive it just covers some of the most common kinds of businesses that people think of. If youre planning to do something more unusual, then you really need to check your local laws.

Should I Bother?

Most home business owners dont know about the rules that apply to them, and dont especially care either. Every day you operate in a regulated industry without a license, though, you risk being shut down, or worse. Its only going to take one upset customer or neighbour to get you into big trouble so unless you want to be worrying all the time, make sure youre properly licensed for whatever you want to do

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