Working remotely is more prevalent in Suffolk County’s work culture than ever before.
The rise of coworking spaces like WeWork and PlexPod offer alternative, fun and modern ways to work alongside, and potentially collaborate with, other individuals in their own respective ventures.
In addition, many Suffolk County business owners prefer working from the comfort of home or local coffee shops.
With these options, I pose the question: Is purchasing your own space for your own business worth it anymore?
Well, one good reason is that your customers/clients will associate you and your space together. The more stable the location, the more comfortable they will be from meeting to meeting.
Oh, but I’m just getting started. I have nine more great reasons for you today…
9 (More) Reasons You Should Own Your Suffolk County Business’ Building
“Don’t wait to buy real estate. Buy real estate and wait.” – Will Rogers
2. You can personalize your work environment.
Whether through technological installation or temperature control, you are the boss of your business AND your space. You also have more power over maintenance and who you allow to work in and on your building.
3. Paying and benefitting from rent.
Your business can pay its own rent in your space, and others will pay you rent if you choose to host others in your building.
4. Your building as a separate LLC.
Setting up the building as its own LLC allows limited liability and separate tax accounting. The LLC can also depreciate the building which will give you a tax advantage to offset rental income.
5. Passing it off to future generations.
Thinking ahead, your heirs can one day step in and erase the depreciation of the building. Buying a building is a decision with lasting impact which adds to your legacy.
6. Commercial real estate is more reasonable than you might think.
Long-term commercial leases are actually pretty reasonable. And with multiple empty office buildings, now is a good time in our economy to buy. Do some research in your area to see what’s out there.
7. Selling or moving locations still presents income.
Whether you decide to sell your building OR move your business and rent it out to others, buying commercial property is an investment that will help you for years to come.
8. A long-term play for the growth of your business.
If you know retirement is a long way off, and you don’t plan on selling your business anytime soon, purchasing a building will add stability to your venture moving forward.
9. Start building a community.
Buying a building means you get to choose which tenants will occupy your space.
10. An asset worth considering.
Overall, owning a building is an appreciating asset for a fraction of the down payment leveraging your investment.
With those 10 reasons being said, buying a building might not be the best option for where you are at as a business owner. Like I said before: this is a long-term play for you and your business. But if the long-term play doesn’t make sense with your short-term financial situation, that is totally reasonable.
If you’ve never seriously considered the option but are now intrigued about purchasing your own space, please reach out and give me a call. I would love to discuss the tax ramifications of exploring your own property.
I’m grateful for our chance to serve you and your business — and we are dedicated to its success. Which means we want to see you build WEALTH, regardless of how it looks.
Can other Suffolk County accountants say that?
Feel free to share this post with a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.
Edwin Casanova CPA PC