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You will want to do a thorough investigation of the zoning laws in your community before you start or buy a retail business. Zoning ordinances and regulations are laws that define and restrict how you can use your property. Typically, zoning restricts land use by type of use, height of the structures on the property and position of the structures on the property.

If you're starting a new retail business, check the zoning laws on what kind of businesses can be located in the area that you have chosen. Your local zoning commission can give you the latest mapping of the retail location and surrounding areas that you are considering.

Location

The location of your retail business may mean the difference between success and failure so choose it carefully. A retail business needs to be where the customers are. Additional factors to consider are state sales taxes, city regulations and economic incentives, commute, image, visibility, accessibility, type of space required, cost, convenience and zoning.

Zoning

Most often, zoning is carried out by an ordinance that is adopted by a city or county under the authority of a state enabling act. The governing body, with the advice of a planning commission, divides the community into districts, or zones, and adopts land use regulations that vary by district but that are uniform within each district. Typical districting schemes divide the community by basic use types (agricultural, residential, commercial and industrial). Within those use types, district regulations establish varying intensities.

If you are planning on purchasing or expanding an existing retail business, you will want to contact your local zoning department to determine if the business is operating under a conditional or special use and what the terms and conditions of the allowed use are. A special or conditional use is a right granted by a local zoning authority to conduct certain activities within a zoning district. Such activities are considered conditional uses, which are permitted within the zone only upon special approval of the zoning authority.

Research Local Zoning Laws

If you are planning on starting or buying an existing retail business then you will want to research your city's zoning laws first to make sure that the business is in compliance. Find out which government body maintains your zoning laws and familiarize yourself with them so you will be prepared to deal with any issues that may arise. Zoning laws may be determined by your city or your county, depending on where you live.

Zoning Considerations

Here are some zoning related issues that you may want to consider before you start or buy a retail business:

• Restrictions that may limit your operations
• Construction or changes in traffic or new highways that may present barriers to your store
• Competitive advantages at the current location that may be diminished by zoning changes that may be advantageous for competitors

Home-based Retail Business

Although there are several benefits to running a business from home, including low overhead, no commute and technology options that make it easy to project a professional image, a retail business is one of the few businesses that is difficult to run from home. Problems arise from the conflict between needing customers to come to your place of business and the penalties of having customers visiting your home.

Most residential zoning excludes retail, so your neighbors can report you to city or county officials if your business creates noticeable traffic, noise or parking problems. Some communities prohibit commercial vehicles or cars and trucks with signs on them from parking on the street.

One option for retailers who want to work out of their home is to sell their goods and services at craft fairs, expositions, by mail order, at flea markets or on the Internet.

Related Resources on Lawyers.com ^sm

- Small Business Law articles and information
- Zoning Ordinances and Regulations
- Visit our Business - General Matters Message Board for more help

Related Web Links

- Small Business Administration - Zoning Overview