Here’s a strategy more contractors should know (and do correctly):

Personally own the asset… and lease it to your corporation.

That can include:✔️ work truck✔️ trailer✔️ skid steer / excavator✔️ shop or yard space✔️ storage for tools + materials

Why it matters?

Construction is a high-risk business. One job going sideways can turn into attorneys, claims, and headaches fast. Sometimes the smart move is keeping expensive assets outside the corporation and having the company rent them instead.

✅ When done right, this can:✔️ reduce taxes (rent is a real business expense)✔️ create clean “owner income”✔️ keep your company books cleaner✔️ strengthen asset protection

BUT here’s the rule: it must be legit.

That means:✔️ written lease agreement✔️ reasonable rent amount (market rate)✔️ real payments made consistently✔️ clear terms for insurance + repairs

🚩 Biggest red flags I see:❌ no paperwork❌ rent amount is unrealistic❌ “we’ll true it up later” payments❌ personal-use vehicles treated as business-only

Book a time to learn more: https://accountingsolutionsllp.com/appointment/