Category Archives: Company Featured Updates

Your Retirement Dollars Could be the Key to your Dream of Business Ownership

The stock market has had its ups and downs. Many people are expecting that at some point soon there will be a correction in the market. Are you seeking other alternatives to invest your retirement savings? Are you burned out from corporate life? Did you know that tax deferred retirement accounts can be invested in your own business? This could be your opportunity to be your own boss. Learn how your retirement savings could be the key to your future as a business owner.

Many corporate executives have no real work/life balance dedicating 60 to 80 hours per week to their corporate job. This takes them away from quality family time and the opportunity to pursue their true passions. This is causing corporate refugees to consider a sounder option of investing in themselves and becoming empowered as an entrepreneur. Individuals with 15 to 20 years in corporate America have money tied up in employer plans, old 401K plans or IRA Rollovers. People are uninformed believing that retirement assets are untouchable. However, the IRS, DOL and ERISA allow you to invest in your own business using retirement dollars as your seed capital without penalty and tax deferred. You can choose a path of franchise ownership, startup or buying an existing business.

This program is well known for franchise startup and is called the DreamSpark plan. The DreamSpark plan is a qualified retirement plan that will allow for investment in your own business. This type of plan allows tax-deferred assets to be rolled over from a 401K or IRA accounts and invested in your business through a new qualified retirement plan. The DreamSpark becomes a shareholder in your new company. An initial valuation of the business occurs based on the amount of equity invested in the business and the retirement dollars invested becomes working capital in the business. That corporation can pay the franchise fee, rent, w-2 wages and any other legitimate business expense. Essentially, instead of investing in Amazon or any other publicly traded company your retirement account is now invested in your business. The success of your business will determine if your investment appreciates or depreciates.

Below is a graphical illustration of how it works from our team of experts at Pango Financial.

The DreamSpark plan offers some key benefits. It allows you to capitalize a business quickly in just a couple of weeks. You can reduce or eliminate the need for business debt. This can lead to quicker profitability. You can also use the DreamSpark plan to make your own payment or equity injection for an SBA 7(a) loan. The DreamSpark plan is also a retirement plan that allows you to continue to save for retirement and reward loyal employees with the ability to save as well. The DreamSpark plan can be designed as a Profit Sharing or 401K plan. The funds in the plan are tax deferred and penalty free and any new contributions made by the business to the plan are deductible.

It is important to select the right business for you and your family. Investing retirement dollars in the wrong business can cost you market returns and loss of your investment. When going into business you must recognize that risk accompanies any kind of investing, but ultimately entrepreneurs prefer to be on themselves. You have direct control of your return on investment and the growth of your retirement account.

The DreamSpark plan may not be right for everyone but it does provide a unique option that you can pursue to start your own business. Because of its complexity and specialized IRS pre-approved plan document, it is essential that you engage a professional third party administrator like Pango Financial to setup and maintain your DreamSpark plan. Long term compliance is key to maintaining your retirement dollars invested as tax deferred and penalty free.

Is a C Corporation right for you?

Is a C Corporation right for you?

If you’re considering starting a new business, or growing an existing one, you could gain significant advantages by structuring it as a C corporation. Compared with other common IRS-designated structures, like a sole proprietorship or Limited Liability Company (LLC), a C corporation can pay less in federal income tax—allowing the owner(s) to retain more revenue.… Continue Reading

Join the Pango broker-partner team

Join the Pango broker-partner team

At Pango Financial, we help entrepreneurs secure the funding they need to embark on the dream of business ownership. While we serve a wide range of aspiring and existing business owners, a large segment of our universe includes franchisees. Not surprisingly, many of our clients are also clients of business brokers—especially those who specialize in… Continue Reading

Cost-cutting for small businesses

Cost-cutting for small businesses

It’s not exactly news: the success of any business, regardless of size, depends on two often competing priorities: to keep revenue flowing and minimize costs. It’s not always easy to strike a balance between the two. Many small business owners find themselves focusing more on the first than the second at times. That’s understandable, especially… Continue Reading

Which financing options are best for your business needs?

Which financing options are best for your business needs?

If you’re planning to establish, buy or expand a business, Pango Financial offers a wide range of options to provide the funding you need. You can take advantage of these options individually or in combination to create a comprehensive financing package that fits perfectly with your long- and short-term goals. Our financing options include: DreamSpark… Continue Reading

Promote your business for Small Business Saturday®

Promote your business for Small Business Saturday®

The holidays wouldn’t be the same without Small Business Saturday (SBS) on the Saturday after Thanksgiving, an initiative launched by American Express in 2010. This year, the big day is November 24. Last year, 7,200 business associations, state and local chambers of commerce, small businesses and other community organizers across all 50 states were SBS… Continue Reading

How to run a successful small business

How to run a successful small business

At Pango Financial we’ve helped thousands of entrepreneurs launch, expand or capitalize their small businesses. One thing they all have in common: a core belief in the inherent value of the product or service they’re selling. Translating that belief into a successful income-generating business doesn’t happen by itself. This is not news to you. Whether… Continue Reading

Business Credit Cards: Know the pros and cons

Business Credit Cards: Know the pros and cons

For sheer versatility, business credit cards are hard to beat—especially from the vantage point of a small business owner or entrepreneurial startup. But like any sophisticated financial tool, cards are better for some uses than for others. Should you open a business card account for your company? A lot depends on how and why you… Continue Reading