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Small Office - Home Office

What Is a Small Office/Home Office (SOHO)?

The term small office/home office (SOHO) refers to a small business that is often run out of small office spaces, homes, or even virtually. These businesses are commonly considered microenterprises. Their owners are commonly self-employed who don't need large office spaces to conduct their day-to-day operations. Most use small office spaces or run their businesses from home. As such, SOHOs generally employ fewer than 10 people.


  • A small office/home office is a small business
  • SOHOs are often run out of small office spaces, homes, or virtually
  • Business owners are usually self-employed individuals who hire fewer than 10 people
  • SOHOs cut out or reduce costs related to expenses like rent and leases, equipment, and utilities
  • Half of the firms in the U.S. are home-based while the majority of the workforce teleworks on a regular basis
Small Office Home Office - SOHO

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