The below article only scratches the surface on how to fund your business venture. For more information on finding financial assistance to pursue your entrepreneurial dreams, check out the library of resources at Lendzz!
Tips for Forming an LLC (and Grants and Programs that Can Help!)
Starting a business demands the investment of time, money, and energy. While time and energy can be sourced relatively easily, money and the necessary expertise can be harder to come by. However, there are various grants and programs that are dedicated to offering the necessary resources for small businesses to flourish.
Benefits of Forming an LLC
Before starting a business, entrepreneurs need to decide on the business structure that will work best for their company. The decision will have a knock-on effect on various aspects of the business.
A limited liability company (LLC) is a popular choice for small businesses because it offers several benefits. Some of these benefits include the following:
Limited personal liability
Tax advantages (pass-through taxation)
Flexible profit distributions
Navigating the incorporation process can be tricky. That’s why many businesses choose to hire a formation service.
Consider Using a Formation Service
Each state has its own regulations around forming an LLC. It’s important to research the rules in each state before filing the paperwork.
A formation service can help with the process. Rather than pay expensive lawyer fees, a formation service provides independent guidance for simple, fast, and cost-effective company registration.
Grants and Programs for Small Businesses
The business landscape is competitive, and the help of a grant or program can be the difference between business success and failure. Here are three financial programs available in the United States.
8(a) Business Development Program
An entrepreneur’s social and economic background can have a major impact on the potential success of the business. Both finances and knowledge resources may be limited based on a disadvantaged setting.
The 8(a) Business Development Program strives to help small businesses that are owned by socially and economically disadvantaged entities. Assistance is provided by limiting competition for certain government contracts. In this way, the playing field is leveled. There is also the opportunity to benefit from management and technical assistance, both of which are valuable in helping the business grow.
Ms. Foundation Grants
As a national grantmaker, For Women supports all organizations regardless of their development stage. The goal of the organization is to connect emerging groups with established entities in an effort to make a difference.
Ms. Foundation offers to fund game-changing organizations, especially those that address issues around reproductive health, affordable child care, and fighting gender-based violence. They also provide opportunities to help a business achieve its goals. For example, Ms. Foundation supports individual leaders with training opportunities and brings grantees together to spark synergy and collaboration.
Although not one specific grant, Grants.gov holds a record of over 1,000 grant programs. Established in 2002, Grants.gov is an E-Government initiative with a mission to provide a central website where federal agencies can post discretionary funding opportunities.
Applicants can filter by funding instrument type, eligibility, category, and agency to find an opportunity that best suits them. In addition, the platform offers several benefits such as helping the grant community learn about available opportunities, simplifying the grant application process, and making it easier to research (and find) federal grant opportunities. It also makes electronic grant application processing easier and gives applicants confidence by using a secure source.