10 Feb How Selling Your Structured Settlement Can Help Fund Costs of Starting a Business
Selling a structured settlement is a great way to come up with the funding you need no matter what type of expense you’re debating. One of the best investments you can make is in yourself, and one of the ways to do that is by starting your own business. Selling a structured settlement is the perfect way to jumpstart the career you’ve always dreamed of.
Every year, over $6 million is paid to fund new structured settlements. On average, structured settlements payout $324,000. That amount is far greater than the $30,000 the Ewing Marion Kauffman Foundation estimated the average cost of starting a business was in a 2009 study. If your settlement is anywhere close to that average, you’ll have enough even after you adjust for inflation.
If those numbers aren’t encouraging enough, the fact of the matter is no business is the same, and many startups these days can get up and running with as little as $3,000 or less. Oftentimes these are the businesses that entrepreneurs start at home to keep overhead and upfront costs down. If starting a new business entirely from scratch sounds a bit overwhelming, there’s always the option of franchising. Many home-based franchises don’t require more than $1,000 to $5,000 to get started.
Should you decide to start your own business, up to $5,000 can be written off on taxes as business startup costs, and another $5,000 can be taken off for organization expenses. Startup expenses include things like travel, payroll, office supplies rentals, and marketing materials. Organizational expenses include legal fees and state incorporation, among other aspects of the business.
While many capital expenses, also known as expenditures or assets, don’t qualify for tax write-offs initially, some can be written off because of depreciation when tax time rolls around. Assets include one-time costs like inventory, property, vehicles, and security deposits.
Keep in mind, 92% of people who sell their structured settlements are ultimately satisfied with their decision. And it’s no wonder why. Selling a structured settlement can truly open the doors to an ideal career — one where you become your own boss. If starting a business is something you’ve always dreamed of and you’re in possession of a structured settlement, then it’s time to take action.