Principal Place Of Business


DEFINITION of 'Principal Place Of Business'

The primary location where a taxpayer's business is performed. The principal place of business is generally where the business's books and records are kept and is often where the head of the firm – or at least upper management – is located. Corporations are usually required to report their principal place of business to the Secretary of State.

BREAKING DOWN 'Principal Place Of Business'

Taxpayers who work from home must be able to prove that their residence is their principal place of business. Two criteria must be met in order for this to be true:

•The designated place of business within the home must be used exclusively and regularly for the performance and administration of the taxpayer's business.
•There can be no other location where the taxpayer substantially performs these operations.

  1. Small Office/Home Office - SOHO

    A business that is operated out of a business owner's residence ...
  2. Home Office

    An office located inside the taxpayer's home that serves as the ...
  3. Home Office Expense

    Expenses incurred from the operation of a business or the performance ...
  4. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  5. Self-Employed Person

    An independent contractor or sole proprietor who reports income ...
  6. Operating Cost

    Expenses associated with the maintenance and administration of ...
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