Entrepreneurs accumulate modern procedure To Finance Dream

Statistics expose that more than one million people in the United States launch a recent business each year. That number would be great higher if all the would-be entrepreneurs had the financing required to procure a business up and running. In order to finish their dream of business ownership, entrepreneurs are finding fresh and innovative ways to finance their novel ventures.

According to Leonard Fischer, President/CEO of BeneTrends, one of these novel financing options is the expend of a person's existing retirement funds-a pension, profit sharing, 401(k), IRA-which allows that person to inaugurate the business he or she has always dreamed of without tax penalties, consequences or mountains of debt.

Under the Employment Retirement Income Security Act (ERISA), retirement funds can be transferred into usable capital for business investments or operations. If a person has more than $40,000 in a retirement record and is not currently employed by the company that holds those funds, he or she qualifies for this runt Business Administration (SBA) -recognized financing near to originate a business.

Retirement funds can be frail for any business purpose, including:

• Purchasing a franchise or existing business

• Start-up expenses, such as purchasing property, equipment, etc.

• Working capital, including paying salaries, franchise fees, etc.

• Business expansion, such as funding additional franchises, locations, etc.

• Equity toward SBA or other loans.

The view of dipping into one's retirement can cause some panic. Through this investment strategy an individual actually has more control over his/her retirement-instead of gaining minimal growth dependent on the stock market, those savings are actually being invested in one's beget business. This advance often allows an individual to spot aside more money for retirement than ever before.

"Today's entrepreneur faces an environment of stout competition, complexity and opportunity, so starting a business the apt blueprint is more necessary than ever," says Dr. Germain Boer, Director of Vanderbilt University's Center for Entrepreneurship. "This financing procedure is a pleasurable option for an individual who has accumulated funds in his/her retirement accounts."

The entire process generally takes two to four weeks to be completed, and can be done by phone, email, fax, FedEx and regular mail.

Working with an experienced employee benefits opinion expert, starting a business is as simple as these four steps:

Step 1: place a C-corporation.

Step 2: The modern corporation creates a retirement understanding.

Step 3: Funds are rolled over into the corporation's unusual retirement understanding.

Step 4: The modern retirement thought purchases the stock of the corporation.

"So many people have watched their dream of owning their possess business go out the window due to lack of funding options. We serve people finish that dream every day using money they already have," says Fischer.

If you're ready to see this innovative financing option, be determined to consult an expert to guide you through the specialized process.