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Start A Small Business & Help The Recovery
Published on Mar 12, 2019
Read 'Start A Small Business & Help Our Nation’s Recovery' at 'Time to Start Up,' the small business blog by BizFilings.
Last month, President Obama announced that $730 million of his stimulus package will be dedicated to making it easier for budding entrepreneurs to start a small business.
What this means for you, if you are one of the many preparing to start a small business, is that it will be much easier to get started.
Small businesses create jobs. According to a recent New York Times article, over the last ten years, they have accounted for nearly 70 percent of new job growth. Because of strong numbers like these, small business start-ups are a vital component of our economic recovery.
Because President Obama and his staff understand the importance of small businesses, they now make it much easier for you to acquire the all-important capital you need to get started.
Robert Steere of Business Owner's Toolkit recently detailed how much of this small business capital will be in the form of tax reduction provisions of the stimulus package. These provisions include, but are not limited to:
Reduced Estimated Tax Payments: The new stimulus package temporarily reduces the estimated tax payments required of small businesses during 2009. This means that less needs to be paid to the IRS during the year, serving as a modest cash flow benefit.
Delayed Recognition of Income from Cancellation of Debt: Small businesses are now allowed to defer recognition of income for certain types of business debt cancellation. If your business has income from cancellation of debt, you may be able to defer the tax consequences for several years.
Increased Exclusion of Gain on the Sale of Qualified Small Business Stock: To encourage individual investors to purchase the stock of small businesses, the stimulus package upped the portion of the gain excluded from income on certain sales of small business stock to 75 percent, rather than 50 percent of the gain.
Bill Sheridan at CPA Success, welcomes President Obama's announcement with the proclamation of "It's about time."
"With more than half of U.S. workers employed by small businesses, it's appropriate that the government's recovery efforts included something along these lines," Sheridan states.
Essentially, starting a small business will not only create a livelihood for you as an entrepreneur, but for the workforce you hire.
As I had stated in a previous post, even in times of economic uncertainty it is still possible to start a small business, provided what you have to offer is of value.
With President Obama's stimulus plan, our economic future appears to have a light at the end of a tunnel. To finally make our way through this tunnel, it's up to any entrepreneur who has that next great idea to start a small business in support of their dream – and in so doing – help to rescue our economy.
Are you that next entrepreneur?
Find out for sure with additional resources regarding how Obama's stimulus package will help you start a small business available on Business Owner's Toolkit: