This is one of the most asked questions in my email and DMs: Can I pay rent using my company? And that’s a valid question. With rents skyrocketing, paying it using your company is a good idea.
So, the short answer is yes, you can pay your rent using your company. But, it’s a complicated process! However, rest assured, I’ll explain it to you.
As with any company expense and for accounting purposes, you need to have an invoice with your company name. In this case, it’s not about buying a service, so an invoice isn’t the correct word. What you need is a rent agreement with your company’s name on it.
So if you can find a landlord to rent you a house AND use your company name instead of yours, then yes, you can expense your rent. And that’s the only option.
Once you rent a space using your company’s name, you need to make it the headquarter of your company. This is a law obligation as you can’t just rent houses for fun.
Also, changing your company’s headquarter means it’s now the legal address of your company. But what are the implications?
- The legal address of your company will be public
- All company mail will be sent to this address
I personally think it’s not a good idea to have your address public, but if you’re okay with these two implications, then go ahead!
The process is like creating a new company. So be prepared for some paperwork and fees. Also, I don’t recommend doing this yourself. Let your accountant do the work (actually, for anything legal, let your accountant do the work for you).
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