Small Office/Home Office - SOHO


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.

BREAKING DOWN '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).

  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. Home Office Expense

    Expenses incurred from the operation of a business or the performance ...
  4. Small And Midsize Enterprises - ...

    A business that maintains revenues or a number of employees below ...
  5. Entrepreneur

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

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