Glenn McDonald Appraiser & Realtor® - EVERYTHING YOU NEED TO KNOW ABOUT COMMERCIAL REAL ESTATE

seller will pay for a part of this with you.

BUSINESS LICENSE TAX

Most cities will make commercial-property owners purchase a business license. If you own more than one property, you usually need a license for each building. In certain areas, you’ll have to pay an annual fee for each registration. Depending on the industry you are in, owners are required to pay a mil tax, flat rate, or a mix of both. It’s not the biggest amount, but it still can add up to a decent chunk when you don’t account for it. Check your city’s regulations to see what licenses you need and how much they cost yearly.

FURNITURE AND KITCHEN AP CHEN APPLIANCES

If you are moving to a bigger space (or smaller), new furniture may be needed to fit or even just match your new floor plan. Or you may not have owned the furniture that you were using before. It is highly unlikely that the owner will leave furniture when you move into your new space. Taking your current furniture is what most companies do, but you may not have any or it could be old and worn. Buying new furniture is going to cost thousands of dollars and should be factored into your total budget. If the full building is yours, you need to factor in waiting areas and other places. You’ll have to furnish your conference room as well. This is a major cost. I suggest buying as many desks and chairs as you need for each employee, and then a few extra ones in case you plan on expanding. You can always order more but if you need someone

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