How to Start a Business

• If you use the leased asset in your business, you may enjoy a potential tax advantage because your lease or rental payments are fully deductible. Leasing also has its disadvantages. For example, the lifetime cost of the asset is generally going to be higher than if you purchased it. You are also giving up any ownership interest, which can be especially costly if you rely on the equipment and find at the end of the lease that the equipment is too expensive to purchase outright. You may also find that you lose the tax benefits of depreciation deductions. There are many variables to consider when making the decision to lease equipment. Here are a few considerations: 1. If you anticipate needing the equipment for the long-term and want to establish equity in it, try to negotiate a purchase option under which a portion of your lease payments is credited to the purchase price. 2. Doing your homework can help prevent undesirable legal repercussions. Consider asking a lawyer to look over a lease before signing. Factors to Consider When Leasing Equipment

RESOURCES

For additional information on Commercial spaces please read the “ Setting up Shop - A Commercial Space Readiness Guidebook ” by ICSC

SMALL BUSINESS DEVELOPMENT CENTERS

Inland Empire Small Business Development Center 3780 Market Street, Riverside, CA 92501 Phone: (951) 781-2345 https://ociesmallbusiness.org/inland-empire/ Coachella Valley Small Business Development Center 44-199 Monroe Street, Suite B, Indio, CA 92201 Phone: (760) 848-4096 https://ociesmallbusiness.org/coachella-valley/

UC Riverside EPIC Small Business Development Center 3403 10th Street, Suite 120, Riverside, CA 92501 Phone: (800) 616-7232 https://techpartnerships.ucr.edu/programs-services/entrepreneurship-support-epic/sbdc-excite-programs

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