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

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  3. Small And Midsize Enterprises - ...

    A business that maintains revenues or a number of employees below ...
  4. Home Office Expense

    Expenses incurred from the operation of a business or the performance ...
  5. Business

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

    An individual who, rather than working as an employee, runs a ...
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  2. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  3. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  4. Are dividends considered an expense?

    Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock ... Read Full Answer >>
  5. Do dividends go on the balance sheet?

    The only account recorded on the balance sheet, when dividends are declared and before they are paid out to a company's shareholders, ... Read Full Answer >>
  6. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>

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