If I’m the owner of a home based LLC, are any liability concerns for my mother (the actual home owner) for allowing me to run my LLC from her home?

There is no foot traffic as it is internet sales and arts and crafts. She has concerns of property tax increases or being sued and losing her home. I advised her that hers is a homestead state so that should’nt be an issue.

Asked on August 11, 2015 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

1) While she would not be liable simply for being the "landlord" for your business for any business debts or obligations, she may need to at least deal with lawsuits: if you use her home address as your business address, then if your business is sued, the plaintiff may try to go after her home on the theory that it is a business asset. She'd win, but would have to spend time, effort, and possibly money responding to the suit.

2) If anyone does visit you (e.g.  you have someone from "Geek Squad" come over to maintain, repair, set-up, etc. your computer) for business reasons and is injured while on premises due to some unsafe condition (e.g. a loose stair or railing), she could be sued as the property owner who permitted an unsafe condition.

3) And while you are undoubtedly not planning on doing anything illegal or criminal while at your mother's home or in conjunction with your home-based business, in theory if you engage in criminal activity from her home, the home could be subject to forfeiture to the state.

4) If local zoning doesn't permit your business in a residential home, she'd be in violation of zoning rules and subject to fines.

5) She could lose her insurance coverage if she does not disclose that there is a business being run from her home to the insurer: her current policy is presumably a residential use only policy, and failure to disclose a different use is a violation of her obligations under the policy.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.