Tips on Leasing Furniture for a Business
Leasing office furniture for a business has several advantages. You can add furniture to your lease rather than having to buy new furniture as your business grows, and you do not have the large investment that buying furniture would require, according to Michael J. Fleming, writing on the SCORE website. Each business owner should have methods for leasing furniture that are advantageous to his company.
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Theme
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When you discuss leasing office furniture with a leasing company, be sure to have a particular theme in mind. You can choose to stay with a particular style of furniture, a color scheme or a manufacturer or brand. Specify exactly what kind of furniture options you would like so that your office can maintain a uniform look. If you take only the options that the furniture leasing company gives you, you may wind up with several different styles and colors of furniture that will give your office an awkward look.
Expansion
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When you are negotiating your office furniture leasing agreement, have a provision included for your company's expansion. Leasing companies sometimes have a schedule of values that they will charge you if you decide to add to your contract later on. The proactive business owner knows that expansion is coming and negotiates specific rates that are more advantageous to his business rather than paying the scheduled rates.
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Maintenance
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Do not sign an office furniture leasing agreement that does not have a maintenance and replacement section. You do not own the furniture you are leasing, so you are not responsible for repairing or replacing it when regular wear and tear causes damage. Do not accept a verbal promise or agreement when it comes to furniture maintenance or replacement. Get the particulars of the agreement in writing, and include detailed explanations of what constitutes wear and tear. Also, get a comprehensive differentiation of when an item will be repaired and when it will be replaced.
Taxes
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Know the tax implications of a lease for office furniture before you get involved. You are able to deduct the full lease payments from the company's income tax if you are using all of the leased furniture for business purposes, according to the Winmark Business Solutions website. But the IRS may characterize your lease as installment payments on a sale. Rather than being able to deduct your full lease payments from your company taxes, you would have to claim equipment depreciation instead. It normally takes longer to realize the full tax benefits of office equipment through depreciation than leasing. Discuss your pending lease with an accountant to make sure that it can be classified as a lease, so that you can enjoy all of the tax advantages of leasing.
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References
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