One benefit of operating a business from home is that your start-up and operational overheads can be lower. Coincidentally, the type of business that you run, as well as the kind of home you live in, will shape your experience. Renters will likely pay more for less room, but they can also change the location of their home-based businesses. On the other hand, a homeowner can probably branch out and have more success with a home-based business if there is enough space to work from. Look at this PNC mortgage review for information on current mortgage rates and borrower requirements. If your home-based business is thriving and you want a permanent spot for your headquarters, here is why you should think about putting down roots.
Homeownership and Tax Incentives for Business Owners
Some home-based businesses are run out of the basement, are centred in an office, or even take up most of the home. Everything you spend on the operation of your business is completely tax deductible. Your internet bill? It’s tax deductible, too. You can get a big refund back around tax time, depending on how much space within your home is used solely for business purposes. Remember, buying a home doesn’t mean that you must purchase a three-story colonial. You can purchase a two-bedroom condo and use at last half of its square footage as a legitimate tax write-off.
Stability for Your Customers
If you have a home-based business such as a day-care and you want to keep long-term clients, you can’t live in an apartment and move every year. When you lease residential property, you don’t have a guarantee as to how long you can stay there. Sure, a year-long lease might seem like a long time when you first sign it, but there isn’t any law in the U.S. that will require your landlord to renew your lease again. Avoid having to get new business cards printed up because your business address is always changing. Buy residential real estate and have somewhere to run your home-based company permanently.
Fewer Expenses
As the available inventory of rental properties in the U.S. decreases, landlords can afford to offer fewer amenities. For instance, if you rent a house to live and work out of, you will probably need to buy a lawnmower so that you can cut the grass. The water, trash, and sewer bill might also be another expense you should be concerned about. For homeowners, lawn and property maintenance is a given, but why would you want to pay city or municipal taxes and fees if you don’t have an interest in your rented property? If you buy, at least you have another expense that you can write-off every year.
At home, you can run a business in complete privacy. As a renter, you must get permission from your landlord. Focus on getting the right licenses and following the law rather than needing to get the okay from someone you pay rent to every month. Putting down roots can only help your home-based business to do even better.
