Should You Buy or Lease?

When deciding whether to buy or lease a particular piece of business equipment, try to figure out the approximate net cost of that asset. Be sure to factor in tax breaks and resale value when making this calculation. After determining which option is more cost-effective, consider other intangibles such as the possibility that the product will become obsolete (if you are considering purchasing) or that your need for the product will expire before the lease does (if you are considering leasing).

For all the practical and legal information you need for your small business, get the Legal Guide for Starting & Running a Small Business, by Fred S. Steingold  (Nolo).