Creating a Capital Equipment List

A capital equipment list is a written compilation of all of the equipment you will need to operate your business. If you've already written a business plan, this may seem like a superfluous or redundant

As a small business owner in the startup phase, develop a list that includes all your equipment. (You can always remove items later.)

Capital equipment is movable. It is not a permanent part of the building. For example, permanent bookcases built during the construction of your office are considered part of the property. However, if those same bookcases can be moved to another location — without reconstructing the wall of which they are a part — the bookcases will be considered capital equipment. Similarly, the physical building in which you place your business is not capital equipment but "real property."

Capital equipment must also have a lifespan. Typically, this is applied to any item that is used one year or longer. This time length is sometimes industry dependent, however.