Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal
Since it is National Small Business Week, I will be focusing my blog posts this week on empowering the small business owner for success throughout the life cycle of their business. According to the Small Business Administration, small businesses make a big impact:
- The 28 million small businesses in America account for 54% of all U.S. sales. Small businesses provide 55% of all jobs and 66% of all net new jobs since the 1970s.
- The 600,000 plus franchised small businesses in the U.S. account for 40% of all retail sales and provide jobs for some 8 million people.
- The small business sector in America occupies 30-50% of all commercial space, estimated between 20 to 34 billion square feet.
- The number of small businesses in the United States has increased 49% since 1982.
- Since 1990, as big businesses eliminated 4 million jobs, small businesses added 8 million new jobs.
In past blog posts, I have discussed topics that may affect small business owners such as entity formation (including the Differences in Filing as an LLC, Partnership, S Corp, Sole Proprietorship and Independent Contractor), estate planning (Leaving a Heritage Not Just an Inheritance, Benefit and Social Corporations), planning for incapacity, and tax issues (including Offers In Compromise). But have you, as a small business owner, given much thought to your future in terms of your retirement planning? According to a recent survey conducted by the Employee Benefits Research Institute, the answer is no, and it is likely a source of great stress.
As one of the Founding Fathers of the United States, Benjamin Franklin put it: By failing to prepare, you are preparing to fail.
My colleague, Corey Schechter, recently blogged about retirement strategies for small business owners: 401(k) plans, SEP IRAs and SIMPLE IRAs. If you would like more information about these and additional benefits programs, our firm has a white paper, The Right Benefits Program: Counseling the California Small Business in 2017, available for download.
The moral of the story is simple: Be prepared, research all the options available to you, and invest in your success now. If you have any questions about retirement planning for yourself and your small business, Butterfield Schechter LLP is here to help. We work for your success. Contact our office today with any questions you have on how we can help you and your business succeed.