Pango Financial’s signature DreamSpark plan turns retirement savings into funding for entrepreneurs and small business owners without debt, loan interest, upfront taxes, or penalties while still planning for retirement! DreamSpark rolls IRA and 401(k) accounts into investment in registered C corporation startups or small businesses. But why a C corp, specifically?
- Tax flexibility when starting out. Entrepreneurs operating C corporations enjoy substantially more freedom to minimize their tax burden. Especially as a business just starting out, a C corp structure allows a lower tax rate than an individual on up to $50,000 of profit. It also offers flexibility in determining how to distribute income and loss over fiscal years, even allowing carrying losses. Every small business startup can face financial challenges during its first few years, and a C corp provides tax benefits that entrepreneurs need.
- Write-offs, write-offs, write-offs. Again, when it comes to tax season, a C corp gives you options. Shareholder salaries or bonuses, medical reimbursements, charitable contributions – all deductible as a C corp, within reason.
- Unlimited growth potential. As a small business grows, a C corp offers more avenues for funding, especially because investors interested in equity (ever seen Shark Tank?) face fewer restrictions than with other common corporate structures. Financing through a rollover product like our DreamSpark plan is only available to C corps. And when a business does grow large enough to be publicly traded and issue stock on a national exchange, it must be a C corp. Registering as a C corp means there is no ceiling on the success of your business.