A principal place of business is where the head office of a business is and where the books and records are kept and/or management works. The principal place of business is required to be filed with the Secretary of State of most states. A principal place of business in your home may qualify you for a tax deduction for the business expenses for the use of your home. If there is more than one business location, determine your principal place of business based on the following factors.
(a)The relative importance of the activities performed at each location and (b)If the relative importance factor does not determine your principal place of business, the time spent at each location.
