It’s important to be aware of the type of small business financing you’ll be pursuing before setting up either a C-Corp or an S-Corp. A qualified CPA can walk you through your options as there are specialized financing options that are available that will affect which corporate entity you choose to incorporate your business.
Traditional lending sources are drying up and if you do manage to secure a loan you end up paying outrageous interest charges. With traditional lending, you could set up your business as a C-Corp or S-Corp with little or no problem. In today’s marketplace, it is wise to get a little creative when obtaining financing for your small business. A CPA firm in Houston has done just that by creating the BORSA Plan. This plan takes advantage of a little-known section of the ERISA Act that allows you to use your 401k to finance your business.
What are my Options with a C-Corp or an S-Corp?
The C-Corporation is the standard business organization that offers limited liability for owners and shareholders. The main point of limited liability being that shareholders are not personally responsible for the liabilities of the company. The S-Corporation offers the same protection of limited liability. Other similarities between these corporations include:
The major difference between a C-Corp and an S-Corp is the area of taxation. While both organizations have to file an annual corporate tax return, the C-Corp is the only one to pay taxes at the corporate level and at the individual level when dividends are paid. The S-Corp’s profits are taxed at the individual level when profits are disbursed to shareholders and not at the corporate level. That is the major advantage of the S-Corp in that it avoids the double taxation that C-Corps must endure. Now, before you go off and have an S-Corp established due to taxation issues we need to look at the BORSA Plan and it’s affect on your decision.
The BORSA Plan for Business Financing
The BORSA Plan is a unique way to finance your business with the funds from your 401k. Let me be clear, you are not withdrawing or borrowing your retirement funds to finance your business. You are simply investing those funds into the stock of your new company. The IRS allows for this type of investing of your 401k with no taxes or penalties being applied. Let’s face it, the so-called “experts” in the financial markets haven’t exactly shown they are trustworthy with your retirement monies so why not control your own destiny and invest in yourself.
As I mentioned earlier, DRDA is a CPA firm in Houston that are experts in arranging this type of business financing. The BORSA Plan can only be implemented with a C-Corp business structure. The beauty of this plan is that you finance your business with no debt, no repayment, and you’ll be flush with working capital and it’s all above board and government approved.
Pick up the phone right now and call 281-606-5719 !! It's your money, your dream, and if you believe you have a solid business idea and are willing to put your all into bringing it to life then you deserve access to your own money without tax or penalty! The BORSA Plan will do that for you. Call now at 281-606-5719 and ask for Suzy Granger. If it's after normal business hours then leave a message, or fill in the short form below. Either way, your inquiry will be returned immediately upon resumption of regular business hours. Get the money you've already earned and start your dream right now!
