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Small Business Owner Needs 401K Advice
Self | 12/29/10 | Self

Posted on 12/29/2010 7:16:46 AM PST by NYACC1978

Hello Freepers,

I have been a lurker since the late 1990s. I think 1999 was the first year I started lurking here. I have enjoyed getting news on Free Republic for years and I have always thought the discussions about news articles were quite interesting.

I have worked in various industries during my career. I worked as a computer programmer between 2002 and 2005. My second job out of college was called client services financial analyst. In 2007, I went back for my second master degree because I decided that it would be in my best interest to pursue accounting as a long-term career.

Since finishing my MS in Accounting in December 2008, I had a temporary consulting job, a volunteer accounting job, and an internship at Deloitte & Touche. Unfortunately, Deloitte did not offer me a full-time job at the end of the internship. My last day of traditional work was on April 1, 2010.

After months of unsuccessfully looking for a job, I decided on December 1, 2010 to start my own business. I am using my intelligence to figure out how to raise as much start-up capital as possible without having to take any loans.

I have started to do research about 401K loans and 401K hardship withdrawals. However, I am the CEO of my company and I cannot spend all my time researching this topic.

I need advice from tax lawyers and tax accountants.

If anyone wants me to elaborate on my situation, I will gladly share more details.

Thank you!


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: 401k; congress; irc
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To: NYACC1978

If you want free but possibly more ACCURATE internet tax advice, you might want to check out:

http://www.irahelp.com/forum/

The people that post there usually know their stuff.


21 posted on 12/29/2010 9:00:56 AM PST by Choose Ye This Day ("As government expands, liberty contracts." -- Ronald Reagan)
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To: NYACC1978

Did you get your CPA yet? Why not? Accounting firms will expect someone with an MS in Accounting to sit for the CPA. Get it.

Send out 200 letters to local CPA (sole practitioners) to see if they are looking to retire and sell their practice. Spend $30 to get a professional write the letter on guru.com, elance or some of the web writing services. Mailing out 200 letters on decent quality paper and envelop will cost $200.

You need to learn how to run an accounting practice from someone who is already doing it.


22 posted on 12/29/2010 9:03:53 AM PST by Frantzie (American TV = owned by the Saudis and elites - keep watching & losing your freedom)
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To: NYACC1978
What my late Dad did was find a CPA who wanted to retire, and would carry the cost of buying the practice; he did that and hit the ground running with an established business.

When he wanted to retire, the same applied with the gal that bought his practice.

23 posted on 12/29/2010 9:07:43 AM PST by ErnBatavia (It's not the Obama Administration....it's the "Obama Regime".)
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To: NYACC1978

Don’t borrow money, borrow hours. First, get a job, any job. The first 40 hours every week is used to pay your bills. The next 20 hours every week is spent building your business. As the business grows you detach from the job when you can fly on your own.

Then you will work about 60 hours a week at your new business for 3-5 years. If you are lucky, you may be able to start cutting back on your hours and eventually get down to 45 hours a week or so.

I built a career this way, and have watched others do the same. Starting a small business by borrowing is a recipe for disaster unless you already have clients and just need a physical plant and equipment to serve those clients.

The money in your 401k adds to your financial standing. Leave it there.

One of the most successful people I know started selling articles out of his garage. After 18 months I helped him rent his first retail space. 25 years later he is selling and retiring from a very successful business with gross sales of about $4 million a year. He worked about 60-70 hours a week for about 15 years. He could have worked less but he preferred to do the work of several people to speed the process.


24 posted on 12/29/2010 9:12:07 AM PST by SaxxonWoods (Gone Galt and loving it)
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To: Choose Ye This Day

You are correct; thanks.


25 posted on 12/29/2010 9:16:10 AM PST by Dansong
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To: Mind-numbed Robot

Hello,

I need to clarify my educational and work background.

I have a BBA in Information Systems, a MBA in Financial Management, and a MS in Accounting.

I worked for over 3 years as a computer programmer. I worked for a year and a half as a client service financial analyst.

I worked for 8 or 9 months for a small consulting firm. It was understood when I took that job that it would be temporary. As soon as the consulting engagement finished, I was laid off by the owner of the consulting firm.

Between September 2009 and December 2009, I was a volunteer accountant at a hospital and I was supervised by my father. My father is a CPA.

Between January 4, 2010, and April 1, 2010, I was an audit intern at Deloitte & Touche.

I am now planning to become an Enrolled Agent.

I do not need another degree to run my business. Until I turn my company into a LLC, I refuse to search for clients. I want the full legal protection of a LLC before I attempt to obtain clients. Without clients, I am not generating any revenue. Therefore, I must obtain start-up money.


26 posted on 01/04/2011 7:46:08 PM PST by NYACC1978
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To: IAmNotAnAnimal

As soon as my business generates revenue, I plan to contribute money to FR.


27 posted on 01/04/2011 7:46:19 PM PST by NYACC1978
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To: Frantzie

My original intention, when I went back to school full-time as a MS graduate student in 2007, was to graduate, work for a CPA firm for two years, and become a CPA.

However, life has been throwing me a lot of curve balls ever since I was a child. It did not help me that the economy fell apart in 2007 when I started my MS degree.

In 2010, my health was significantly affected and I had to deal with my medical condition for months.

Due to the type of medical condition I have, it would be in my best interest not to become a CPA. Since I plan to focus on taxes, I would much rather become an Enrolled Agent.


28 posted on 01/04/2011 7:46:36 PM PST by NYACC1978
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To: NYACC1978

I wish you the best. Focus on the EA then and try to get with a smaller CPA or EA firm to “learn the ropes.” Try to find an EA, tax preparer or accountant who is older and is looking to eventually retire. You could slowly buy them out.


29 posted on 01/04/2011 8:16:23 PM PST by Frantzie (Slaves do not have freedom only the illusion of freedom & their cable TV to drool at)
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