ICAO Article: Should you Buy or Rent your Business Premises?

This is a great quick article outlining some of the pros and cons of buying or renting a business premises written by the Chartered Accountants of Ontario. If you’ve ever thought about purchasing the building where you run your business, this will give you a few things to consider.

Owning a business and making daily decisions go hand-in-hand. But when it comes to purchasing your business premises, that is a financial decision that is not made lightly.

Clarify plans for the business …

With ownership come options

Property can be a good business investment

Business property can be a good personal investment

Property is a plus for prospective buyers

Sell, move and save taxes

Renting allows easy outs

Renting can free up cash and capital

Mortgages may require personal guarantees

Consider your financial statements and your future

Chartered Accountants Chris Joakim, Partner with Meyers Norris Penny LLP in Markham, and Paul Rhodes, Partner, Audit and Assurance at Soberman LLP in Toronto, both regularly advise a wide variety of business owners in their respective practices. They agree that deciding whether to buy or rent premises from which to operate deserves careful consideration. Here are some of their tips to help you think it through.

Read the full article here:

http://www.icao.on.ca/…/1009page13088.aspx

 

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