Nope, no zoning issues. I checked before I even pulled in my first mill and started as a hobby. Trust me, my step father is the township trustee or something like that, if I was doing something illegal, he would have my ass! Believe me! Besides that the former mayor is a used machine dealer and I buy parts from him. 1 mile north of me, no! In the village, absolutly not, you will get shut down immediatly.
I apologize that I did not realize that you could get an ISO cert working out of a gargage. I worked at a shop while they were getting ISO certified and I saw just a bit of what they had to go through, the inspector was a nervous wreck. And I have never heard of anyone working out of a garage on residential property getting an ISO cert, but I stand corrected.
As far as hiring my friends, I should clarify that they only deburr, oil and pack parts. Is there still liability, sure. And I am very aware and concious of that.
The one problem that I might have in home-owners insurance as mentioned. As far as workers comp, I had it for a while, had to have it for doing "on site repairs" for a shop that I sub-contracted for, it was part of the contract. As far as myself being the only employee, I don't need insurance on myself, my disablility insurance would cover me better than workers' comp. Blah blah blah.