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).

RELATED TERMS
  1. Microenterprise

    A small business that employs a small number of employees. A ...
  2. Virtual Office

    A business location that exists only in cyberspace. A virtual ...
  3. Satellite Operation

    A small office in a different location from a company or government ...
  4. Middle Office

    The group of employees in a financial services company that manages ...
  5. Front Office

    The sales personnel and corporate finance employees in a financial ...
  6. Branch Office

    A location, other than the main office, where business is conducted. ...
Related Articles
  1. Investing

    How Zhang Xin Built a Real Estate Empire

    An overview of how Zhang Xin built a multi-billion dollar real estate empire from the ground up.
  2. Professionals

    MEMBER OFFICES

    Member Offices The NYSE requires that the main office of a member firm be open for business during every NYSE full trading day. As a member’s business grows, they will often wish to open ...
  3. Economics

    What Does the Back Office Do?

    A financial services company’s back office provides administrative and personnel support.
  4. Home & Auto

    The Most Expensive Neighborhoods in Manhattan

    Understand why Manhattan has some of the priciest residential real estate in the world. Learn about the top four most expensive neighborhoods in Manhattan.
  5. Professionals

    Zhang Xin

    Find out how these leading ladies made their way to the top.
  6. Entrepreneurship

    The 4 Most Common Reasons a Small Business Fails

    Discover the most common reasons small businesses fail, including capital formation, management concerns, planning issues and marketing missteps.
  7. Entrepreneurship

    Want to Open a Small Business? Beware of These

    While all small businesses face long odds, these four types are even less likely to succeed.
  8. Entrepreneurship

    5 Warnings Signs of Risk for a Small Business

    Learn how to keep on the lookout for these five potential warning signs of risk that your small business is stalling out or failing.
  9. Home & Auto

    Cover Office Equipment Separately

    Earthquakes, floods, tsunamis, hail, hurricanes, tornadoes and lightning strikes are just a few of the nasty surprises that nature can whip up.
  10. Entrepreneurship

    5 Biggest Challenges Facing Your Small Business

    Thinking about starting your own business? Read this article to get a leg up on what you could face.
RELATED FAQS
  1. Do companies have to pay back their paid-up capital?

    Learn what business structures are available to entrepreneurs, and learn the process for making the most appropriate selection ... Read Answer >>
  2. How much working capital does a small business need?

    Learn about the three primary factors that determine how much working capital is needed by a small business, including business ... Read Answer >>
  3. What's the average salary of a compliance officer?

    Learn about compliance officers, the locations and industries in which compliance officers work and how much they earn on ... Read Answer >>
  4. What are some good resources to help entrepreneurs develop a business model?

    Find out what resources are available for developing a small business model; learn what websites contain useful information ... Read Answer >>
  5. What is the point of developing a business model?

    Learn some of the benefits of developing a business model and how business models are used. Consider an example of business ... Read Answer >>
  6. What are the most common business deductions and expenses for small businesses?

    Learn about some of the most common business tax deductions available to small businesses that can reduce net business expenses. Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center