Location: City of Torrance. Click here for the exact location.

Great place for international companies or startups trying to open a branch in California. We can help with many other things (our office is on the right, the available space on the left). The building is owned by Eastbiz Corporation.

Contact: info@eastbiz.com

Depreciation is the loss in value of an asset / building over time due to wear and tear, physical deterioration and age.  The cost of reproducing an income property can be recovered over the useful life of the asset which is determined by law.  Depreciation is treated as an expense and is a line item on an income statement.  Depreciation can only be applied to the building and not the land, since land does not wear out over time.  Residential income property must be depreciated over a 27.5 year period using straight line depreciation.  Commercial income property must be depreciated over 39 years using straight line depreciation.  Straight line depreciation stipulates that an asset must be depreciated by equal amounts each year over its useful life.

Example:  You purchase a warehouse for $900,000.  The land where the warehouse resides is valued at $120,000.  The building is valued at $780,000.  Current law allows you to depreciate commercial properties by equal amounts annually over 39 years.  Your depreciation deduction for the first year is based on the mid month convention.  The day of the month that you purchase the property doesn’t matter.  You can only deduct half of the first months depreciation.  If you put the warehouse into service on June 1, you are allowed to deduct 6 and 1/2 months of depreciation for the first  year.

We also offer storage (warehousing) for your products. For example you are small startup selling and shipping products to your customers. Now you can use our warehouse and office to meet clients. Our prices are the lowest you will find and we love to work with e-commerce companies and startups.

For more information visit our website about Los Angeles virtual office.

Wikipedia: The Small Business Administration (SBA) 504 loan program was created to help small to mid-sized business owners acquire commercial property without the financial hassles. While this program is less-used and very little understood, in order to qualify, over half (51%) of the property must be occupied by the borrowers within one year of ownership. Another option is forming a holding company from two operating companies. This company can then take the title to the commercial property. To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company. The 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility: 

• The company’s average net income cannot surpass $2.5 million.
• The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.
• Net worth of the operating companies must be $7 million or less.

SBA loans are really great. You need just 10% downpayment comparing to 25-35% for conventional commercial loans.