Entrepreneurship is on the rise and will continue to grow in the upcoming decades, mainly due to Gen Z and its “be-your-own-boss” mindset.
Now that the government is providing aid in hopes of redeeming the economy and bring it back to its pre-pandemic glory, it is the perfect time to test the waters and get yourself busy by creating not just one but multiple businesses.
Is Starting Multiple Businesses a Good Idea?
To start one business is already tough so starting multiple can be quite tricky. But, if you’re comfortable taking risks in investments, why not here? The ideology of multiple businesses is based on “high risk, high reward” so, if multiple businesses do sound risky, they come with a huge reward.
Think of all the things you can accomplish if you happen to launch multiple businesses and think about all the things that can be learned if you are unable to make it – it is a win-win situation either way!
Getting Started – Research First
If you’ve put your mind to start your business, then get at it!
Before you start mapping out, though, you need to research your target audience, possible federal agencies as clients, potential competitors, studying the mode of work of well-established businesses, and your business idea’s unique pitch.
Selecting the Right Legal Structure
There are many different ways you can approach this but in the end, it all boils down to how you deal with the company. Picking the best legal structure will determine how businesses pay their taxes or manage other liabilities. You’ll also need to register the business as a ‘government contractor’.
Consider Building Under a Holding Business
Holding companies are often defined as those companies that buy shares of other businesses and then basically take ownership of the business. Now you must be thinking about how that could help you. Well, once your business becomes the holding company’s subsidiary, you no longer have to pay huge chunks of taxes.
You’ll only need to pay taxes placed by the states that you’re in but, this holding company does come with its fair share of drawbacks, such as the complex financial statements, special legalities, and not to mention, the holding company basically owning more than half of your business.
This is simple yet essential information that anyone who’s planning to start a business should know.