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GWarren For Business & Nonprofits
GWarren For Business & Nonprofits, Attorney
Category: Business Law
Satisfied Customers: 355
Experience:  30 yrs Counsel, AVP Corp Governance Fortune 100 finance/ins, Nonprofit Bds, law firm. OH NJ license
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hi, I operate a online retail business from maryland. My home

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hi, I operate a online retail business from maryland. My home is legally designated as our administrative location but I need to have a commercially zoned location for our stock. Can I use a storage facility such as "extra space storage" as this location? We have very little on-hand stock and it would fit in a closet or extra small storage space. I've tried contacting our local zoning office but they are not much help. Thanks for your help!
Thank you for contacting just answer.

Your sensitivity to the local zoning requirements is admirable. Home based businesses are usually permitted for online sales under most zoning and residential building codes as long as you do not have public traffic (customers visiting the home) and there is no significant stock inventory in the residence. The IRS will also typically permit deductions based on the allocated space exclusively for home based businesses.

Your approach to use a commercially zoned storage location appears appropriate and is similar to many online sellers' use of drop shippers for storage and delivery of stock from inventory. The small amount of stock you retain in the home appears de minimis (not significant to cause an issue) and if you have any concern (based on the value of that on-hand stock) you could contact your home insurer agent or broker to determine whether you need any coverage to protect your off-site storage by an insurance rider (the storage unit may also offer insurance protection from hazards).

I hope this is responsive to your question and concern, however, if you would like further clarification, please reply and I will attempt to address any further questioning.
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