How to Make Sure Your Home Business Is Legal

Here are a few recommended tips for new or prospective home business owners to make sure your home business opportunity is legal.

Slow Down – Take a Deep Breath

Our greed makes us prone to take action when we normally would behave more cautiously or rationally. Slow down when something sounds too good to be true, it usually is. The con artist usually wants you to take immediate action – resist the temptation.

If the business is legitimate and built for the long haul – a day or two won’t make a difference in your success. But, taking time to evaluate the company and the business can save you heartache and money.

Check with the Better Business Bureau (BBB)

Check with the BBB Better Business Bureau is your town and the city where the main business office is located for the company you are investigating. Any legitimate business will have a verifiable business address. Make sure the address is a physical building and not just a mail drop box. This is easily accomplished with a Google search.

Get References

We are more likely to be approached about a home business by a family member or friend than by any other method – though internet advertising has greatly increased our exposure to this market. Either way, ask for at least five references from the business and your sponsor.

Investment Required

Every business has a start-up cost whether the business is operated out of your home, on the internet or a more traditional brick- and-mortar. Always, make sure the initial investment is something you can live with losing because there can be no guarantees of success.

In addition to the initial investment, make a realistic determination about the recurring monthly costs, like business cards, advertising, monthly orders required by the company to remain active and conferences. Some of these are basic, but need to be included in your business budget.

Money Back Guarantee

Check to see if there is a money back guarantee for your initial investment. Many companies do offer a limited time guarantee – just make sure it is writing.

Legitimate companies that sell products are required to have policies for people to return unsold product to the company within a limited time. This is to prevent the “garage full of product” problems faced by many people who thought they could buy their way to success or just found the product did not sell. Again, get this in writing so you can return unused product for a refund.


After you perform your due diligence, take a self-assessment. This will prove to be extremely helpful for determining your success after you make sure your home business opportunity is legal.

What skills, talents and expertise do you have in the area of the business you are considering?

Are you willing to do what your mentor teaches you in order to reach a similar level of success?

Are you willing to learn the business?


There are many legitimate and legal home businesses available to you. The guiding phrase in this industry is captured in the old, old phrase “Caveat Emptor” or “Buyer Beware”. Protect yourself by following these few simple tips before laying down your money.

Wishing you the best of success.