I have partial funding for my new business, but I need to secure some more funding before I pull the trigger. Until recently I have always considered the money in my traditional IRA accounts to be off limits. I knew that there were ways to use them, but I wanted to leave these alone in case I ever needed a safety net. I have now changed my mind about using these IRAs to start the business (partially a result of reading MJ's book). I am in the process of exploring the feasibility of this.
I do not want to take on partners and am trying to start this business debt free. In the initial phases of this business, there will not be enough profit to support repayment of a loan. The plan for my new business is to keep risks low and operate it as a sole proprietorship to enjoy the tax benefits of that structure.
I have been reading about companies such as Guidant that create a C Corp to allow use of an IRA to invest in your own business without tax penalty. The problem with this is, it creates a more expensive structure. I am wondering if I might be better off just making an early withdrawal from the IRA and paying the taxes and penalties so that I can keep the structure as a sole proprietorship.
Does anyone have any experience or advice on this? Has anyone used Guidant or have another company to recommend?
I do not want to take on partners and am trying to start this business debt free. In the initial phases of this business, there will not be enough profit to support repayment of a loan. The plan for my new business is to keep risks low and operate it as a sole proprietorship to enjoy the tax benefits of that structure.
I have been reading about companies such as Guidant that create a C Corp to allow use of an IRA to invest in your own business without tax penalty. The problem with this is, it creates a more expensive structure. I am wondering if I might be better off just making an early withdrawal from the IRA and paying the taxes and penalties so that I can keep the structure as a sole proprietorship.
Does anyone have any experience or advice on this? Has anyone used Guidant or have another company to recommend?
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