More than 1 million self-employed Americans are no longer in business almost four years after the last recession began, as the economy constrains entrepreneurial activity and small-business job creation. The 18-month contraction that started in December 2007 initially resulted in more would-be business owners, as the number of people who work for themselves grew to 16.3 million in July 2008 from 15.7 million at the end of 2007, according to data from the Bureau of Labor Statistics. Since then, the total has fallen about 10 percent to 14.7 million in July, the data show.
Employer businesses — those that provide work for individuals including the founder — “have been starting in fewer numbers, with fewer workers and growing at a slower pace than in the past,” according to the Kauffman Foundation, which supports research on start-ups. “Therefore, these entrepreneurs are generating increasingly fewer new jobs for the U.S. labor market.”
The number of new employer businesses dropped 24 percent in 2010 in comparison to the numbers from 2006. This has contributed to high unemployment as the economic recovery slows. The rate has remained above 9 percent for 25 of the past 27 months, falling to 9.1 percent in July from 9.2 percent in June, BLS statistics show. And, August data released September 2 revealed no net increase in employment with unemployment steady at 9.1%.
In general, small companies employ about half the private-sector labor force. During the economic slump, so-called “necessity entrepreneurs” started businesses because they couldn’t find a job and needed to keep food on the table. Many of those entrepreneurs needed financing and were discouraged by banks that simply wouldn’t lend. Enter IRA Financial Group’s team of attorneys with financing solutions for small business start-ups.
The IRA Financial Group’s Business Acquisition Structure is your solution!
Use your retirement funds to purchase a new business or franchise – Tax Free – and without penalty! It’s 100% IRS compliant.
The Employee Retirement Income Security Act of 1974 (otherwise known as ERISA) and the Internal Revenue Code firmly establish that retirement funds may be used to acquire or invest in a new or existing business as long as the transaction complies with IRS and ERISA rules and regulations. Because the IRS has stressed the importance of one-hundred percent compliance with these rules, it is crucial to work with a company that is operated by a team of in-house tax and ERISA attorneys to ensure the structure is fully compliant with IRS and ERISA rules. While IRA Financial Group’s competitors were promoting this type of structure, which in many cases failed from a compliance standpoint, the IRA Financial Group’s in-house tax attorneys spent the last two years reviewing IRS materials in order to develop the Business Acquisition Compliance and Support Structure (“BACSS”). BACSS was designed as an IRS and ERISA compliant structure for using retirement funds to acquire or invest in a business tax free!
The IRA Financial Group’s tax attorneys will work with you directly to develop an IRS and ERISA fully compliant business acquisition or funding solution customized to your individual business, financial, and retirement needs. It’s time to take control of your future!