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Legal Considerations of Owning and Operating a Coworking Space

Legal Considerations of Owning and Operating a Coworking Space

A coworking space is an arrangement where workers from a variety of companies share a common office space. Usually, a coworking space is attractive to upstart businesses, independent contractors, and those who travel frequently due to the nature of their work. San Francisco and other Bay Area cities are largely considered the first to implement this in the United States, however it has rapidly grown in popularity across the nation, even to Indiana. One of the reasons why coworking spaces have grown in popularity is that these spaces allow small companies or individuals to cost save through the use of common infrastructures.

If you want to start and operate a coworking space, there are some legal aspects that you may want to consider. Choosing a legal form for your new business would be your first consideration. Specifically, someone who wants to begin a coworking space will have to consider whether they want the business to be a Limited Liability Company (LLC), or another corporate form. You can read more about the various Indiana business entities in our previous post here.

Another necessary legal step would be to determine what permits you may need. There may be local licenses/permits that must be obtained in order to set up the coworking space. There might also be zoning considerations depending on the location in which you want to start the coworking space.

A legal contract should be developed to lay out the terms of the services of the coworking space and how the space will operate. This contract should include a list of all the services your space provides, all renewal and termination terms, and a section where the responsibilities of those using the workspace are explained clearly. The contract should also describe thoroughly the payment terms and methods so that there are no payment issues. Lastly, obtaining an insurance policy for the upstart coworking space is important, along with mandating anyone who wants to use your coworking space that they obtain their own liability insurance for any personal injury or property damage that may occur.

While these are the basic considerations for starting a coworking space, this list is by no means exhaustive. If you are considering starting a coworking space, contact the Indiana small business attorneys at McNeely Law today.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.

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