2) Home-based business that turns no profit - Regardless of the profitability of a business, in the United States (and most everywhere else in the world) you ha

2) Home-based business that turns no profit - Regardless of the profitability of a business, in the United States (and most everywhere else in the world) you have to pay the relevant city/state/county/federal licensing/inspection/regulatory/screw-you fees. 2) does not apply in India, at least. As a 'sole proprietor' you pay taxes on profits as per personal income tax. No profits, or profits under the minimum taxable limit: no taxes. Don't like it? Don't run a business out of your home. Not exactly cogent justification.