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?

UPDATED: Aug 11, 2015

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 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.

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