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Buying equipment

The plan is now for the company to buy whatever equipment it needs out of its own funds. If you already have equipment, you can sell it to the company, or you can go on using it instead of using a company machine. This gives the company control over the choice and allocation of equipment, and lets people invest as much as possible directly in stock. The disadvantage of this arrangement is that the tax breaks are less attractive, but tax breaks are only one consideration out of many.

Editor: John Walker