In today’s world, with the advent of digitalization, the concept of home office working has become increasingly popular. Many people have started working freelance or online, solidifying the home-based work model. With this in mind, those looking to establish their own business are also turning to home offices to set up their operations. Recently, the idea of establishing a home office has gained popularity, aligning well with the home-working concept. The sole proprietorship is a practical process for individuals who wish to step into the business world with lower costs without the need for a physical office. However, a common question among those looking to take such a step is how to establish a home office sole proprietorship. In this article, we have explored the details of the topic for you.
What is a Home Office Set Up?
Before addressing the sole proprietorship of a home office, let’s answer the question: what is a home office? A home office, also known as remote work, is one of the work models that has become popular with digitalization. This working style is used by individuals who run their own businesses or work for any company without the obligation to go to a physical workplace. Those working from a home office convert a part of their home into an office or create a workspace. According to this working principle, almost all business processes are managed from home. In this context, individuals who want to establish their own business and have business processes that can be managed from home can open a sole proprietorship to officially carry out their processes. This situation, also referred to as a home office sole proprietorship model, means that the tax office allows the establishment of a company at home. These are generally small-scale operations and can be easily established as a home-based sole proprietorship, as they are not considered within the scope of taxpayers. Due to their low costs, they are preferred by entrepreneurs who wish to run small-scale businesses. In this context, individuals who establish a home-based sole proprietorship must fulfill obligations such as issuing invoices and submitting necessary declarations at certain intervals.
How to Establish a Home Office Company?
One of the questions that small entrepreneurs and those wishing to start a business from home frequently ask is how to establish a home office company. The answer is quite simple. The steps required to establish a home office sole proprietorship are straightforward, and by paying attention to the points we have researched below, you can create your sole proprietorship.
- You Must Have a Business Plan To establish a home office company, you must first have a business plan. At this point, you should determine what service or product you will offer, know your target audience, and conduct market research within the sector you will be involved in. Creating a revenue model at this point is also important. A detailed business plan can serve as a roadmap for you and will guide you while managing your company.
- You Must Register with the Tax Office To manage a sole proprietorship as a home office, you need to formalize your setup. To do this, you must register with the tax office that you are a sole proprietor. Since you need to be a taxpayer to manage your business processes appropriately, you should inform the tax office that you want to establish a sole proprietorship. You need to visit a nearby tax office, complete the required documents, and finalize your sole proprietorship application. The necessary documents to open a home office include:
- Copy of identity card
- Residence certificate
- Home rental agreement (business rental agreement)
- Tax office application form
- Signature declaration obtained from a notary
- Power of attorney to be submitted to the accountant
- 2 passport-sized photos
- Get Support from a Financial Advisor To easily manage the accounting work for your home office business, you may need to get support from a financial advisor. They will assist you in organizing processes such as tax declarations, financial reports, and accounting transactions. They will also guide you during the process of establishing your sole proprietorship.
- Create a Workspace for Yourself After completing the necessary legal procedures for your home office sole proprietorship, all that’s left is to set up your workspace. You can prepare a room or a corner of your home as your working area. By creating a home office, you can establish a comfortable working environment. An ergonomic office chair and a desk of ideal height will help you carry out your tasks comfortably. Creating a comfortable workspace will enhance your productivity and allow you to perform better at your job.
Advantages of a Home Office Sole Proprietorship
When we look at the advantages of a home office sole proprietorship, we see that it affects many financial and emotional aspects. These can be listed as follows:
- The expenses of a home office sole proprietorship are significantly lower compared to establishing a normal company. Additionally, these companies can be set up quickly, eliminating the need to allocate costs for extra expenses such as rent, electricity, or water bills.
- You can enjoy a comfortable working environment with a home office. You can create a relaxing workspace suitable for your working style at home.
- Finding a quiet working environment is not difficult with a home office. The noise from shared workspaces can hinder your productivity. With the home office working principle, you can escape this noise and work more effectively.
- Since you can prepare your own working plan, you can create flexibility in your working hours. As you are your own boss, you can establish your own working principles as you see fit.
- By avoiding external company costs, you will not have to incur excessive expenses during the day.
If you wish, you can also check out our blog post titled What is Remote Work and How Should Furniture Be Selected? to gain more detailed information about remote working and learn how to create an efficient workspace.