There are definitely many startups in SF whose teams all live in the same house together, and work there, who seem to be doing just fine. Some (like http://thum

There are definitely many startups in SF whose teams all live in the same house together, and work there, who seem to be doing just fine. Some (like http://thumbtack.com http://thumbtack.com) even have an in-house chef and other perks. In my opinion, early-stage startups should live together. Yeah, sure, it'd be nice to have more of a distinction between home and work, but honestly 90% of your day in an early-stage startup is work. However, an office is definitely preferred during the later stages, which is not to say that a house is inappropriate. Key milestones which might be a good sign for getting an office space: - Not even two houses could hold all team members - You're on your third hiring wave (i.e. none of the new hires are considered part of the core, or even secondary, team) - Your advisors tell you to get a house - Increasing tension among workers