Small Office/Home Office - SOHO

AAA

DEFINITION of 'Small Office/Home Office - SOHO'

A business that is operated out of a business owner's residence and can be located in an established office within the residence. A small office/home office is considered a microenterprise since it typically has fewer than ten employees and is categorized one notch below a "small business." Traditionally, SOHOs are focused on white-collar jobs.

INVESTOPEDIA EXPLAINS 'Small Office/Home Office - SOHO'

Prior to the proliferation of larger-scale businesses during the 19th century, most businesses would be categorized as SOHO. Entrepreneurs running this type of office include lawyers, consultants and freelancers who might not require a formal office to meet clients. Because a SOHO operates out of a home, some tax issues are treated differently by the Internal Revenue Service (IRS).

RELATED TERMS
  1. Principal Place Of Business

    The primary location where a taxpayer's business is performed. ...
  2. Home Office

    An office located inside the taxpayer's home that serves as the ...
  3. Small And Midsize Enterprises - ...

    A business that maintains revenues or a number of employees below ...
  4. Business

    1. An organization or enterprising entity engaged in commercial, ...
  5. Entrepreneur

    An individual who, rather than working as an employee, runs a ...
  6. White Collar

    A working class that is known for earning high average salaries ...
Related Articles
  1. Personal Finance

    Recognize And Avoid "Work At Home" Scams

    From pyramid schemes to envelope stuffing, there are a lot of scams masquerading as legitimate part-time work.
  2. Taxes

    How To Qualify For The Home-Office Tax Deduction

    Homebodies can save big on their tax bill. Learn how to get in on the action.
  3. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  4. Entrepreneurship

    Top 10 Home Business Tax Tips

    If you work for yourself, make sure you are getting the most for your tax dollars.
  5. Options & Futures

    Returning To Work: Is It Right For You And Your Family?

    Returning to the workplace can create some unique stresses. In the end, does the additional income justify the extra expenses?
  6. Entrepreneurship

    Creating A Home Business Work Space

    Your work environment can make or break your career as an entrepreneur.
  7. Fundamental Analysis

    How do I calculate dividend payout ratio from a balance sheet?

    Understand what the dividend payout ratio indicates and learn how it can be calculated using the figures from a company's balance sheet statement.
  8. Credit & Loans

    When is it necessary to get a letter of credit?

    Capitalize on assets and negate risks by using a letter of credit. Letters of credit are often requested for buying, selling or trading.
  9. Fundamental Analysis

    Can entities other than banks issue letters of credit?

    Obtaining a letter of credit from a non-bank is legally acceptable according to the ICC, but companies tend to prefer to receive them from banks.
  10. Investing Basics

    What is the difference between tangible and intangible assets?

    Discover the difference between tangible assets and intangible assets and the types of assets that are in each. Additionally, learn where these are recorded.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center