Many individuals would prefer to own their own company rather than work for someone else; however, only a small fraction of people actually operate get to fulfill this dream. One of the most common excuses given for not starting a small business is the large initial capital investment. Fortunately, starting a company does not necessarily have to be that difficult financially. For anyone who lacks the initial cash outlay to buy needed items, leasing is a popular option.

There are various components of a business that can be leased that could include: commercial office space; computers; desks and other such equipment; and even company vehicles.

Advantages of Leasing Commercial Office Space

Commercial leasing offers a good window of opportunity to anyone wanting to start a business without having the necessary capital to make such an investment. Unlike purchasing property that requires a down payment up front, leasing frees up capital to allow for a better initial cash flow within the company. Listed below are some specific advantages to renting office premises:

• Tax Deductions – For a true lease as approved by the Internal Revenue Service, such payments are deductible as a business expense.

• Tax Credits – An investment tax credit is a reduction in federal income tax on a dollar per dollar basis equal to ten percent of the annual cost of the office space. The tax credit may benefit the lessee in the form of reduced lease payments.

• No Mortgage – Another benefit to office space rental is the freedom of not being locked into a mortgage, an advantage that any person starting a business can truly appreciate.

• Less Responsibility – A leased property typically assigns to the tenant less responsibilities such as maintenance, security, and other major improvements that can be shouldered by the building’s owner.

Advantages of Leasing Company Equipment

Office equipment such as computers, printers, fax machines as well as furniture including desks, chairs, conference tables, etc. can easily be expensive to purchase outright. Leasing offers a better option to acquire necessary supplies without such a large expenditure. Listed below are additional considerations to renting such items:

• Keeps Costs Down – The amount of equipment required for running a business is proportionate to the number of employees. If there will be a large number of employees, a lot of office furniture will have to be purchased. This would require spending a bit of money to purchase such needs. Leasing offers the capability to acquire the necessary office equipment without spending such a large amount of money.

• Keeps Technology Current – The technology used in offices such as computers changes at a very fast pace. Keeping these provisions up-to-date would be much more difficult once it has been purchased; however leasing such equipment allows for upgrades by merely turning in the old equipment and requesting newer models. The cost on a lease basis is much more reasonable than the cost on a purchase basis.

Advantages of Leasing Company Vehicles

Most businesses require a company vehicle to get the enterprise started. Such owners have the option to choose between purchasing and renting a car. Owning a company vehicle may seem like the best idea; leasing also has benefits that should be considered:

• More Recent Models – Driving the most current model of a car or truck is always a good idea. The gas mileage is better and the appearance of the new vehicle contributes to the positive image of a business. Leased vehicles can always be turned in for more recent models with usually only a slight increase in cost.

• Low/No Maintenance – Renting a vehicle can lead to savings since such cars typically require only minimal maintenance as it is usually provided by the company from which the car is rented.

• Income Tax Deductions - Renting a vehicle is a tax-deductible expense for a business that can help reduce yearly taxes.

Starting a business may be a dream to many that was thought to be impossible to achieve. Now, with the option of leasing everything from office space to a company vehicle, fulfilling that dream may be closer than was ever dreamed possible. Pursue a dream and own a business thanks to the leasing advantage!