FINANCIAL FOCUS
KRISTI TREVINO Financial Advisor Edward Jones
FINANCIAL MOVES for WOMEN BUSINESS OWNERS
If you ’ re a woman who owns a business , you may have some challenges not shared by your male peers – but you also have several opportunities to help improve your financial future .
You may already be taking some or all the right steps , but here are some ideas to be sure you ’ re considering and revisiting as your business grows :
• Refresh your network . Are you involved in networking with other women business owners ? Many of them may have insights into the issues women face in the business world , as well as suggestions about lending programs and businessfriendly banks . You may also enjoy passing along your lessons learned to others .
• Review your business structure . If you go into business as a sole proprietor , you ’ ll have to report your business income on your personal income tax return . If you incorporate or form a limited liability company ( LLC ), you can protect your personal assets – such as your house and your investments – from creditors because these assets will be separated from your business assets and debts . You might also consider other , more complex entities , known as C and S corporations . There ’ s no single “ correct ” business structure and the most appropriate one for you may change over time , so , in choosing one that ’ s right for your needs , you ’ ll want to consult with your tax and legal advisors .
• Do an insurance checkup . To protect yourself and your business , you may want to review your insurance to make sure you have the right kinds and amount of coverage . General liability insurance can be appropriate for sole proprietors , if you ’ ve established an LLC or you ’ ve incorporated your business . If you provide some type of professional service ( i . e ., legal , accounting , engineering and so on ), you might need professional liability insurance . And no matter what business you own , you might want to add disability insurance to replace some of the income you ’ d lose if you were injured or became ill .
• Consider all your retirement options . If you ’ ve got your own business , you ’ re solely responsible for funding your retirement . Fortunately , as a business owner , you ’ ve got several attractive options , including
an “ owner-only ” 401 ( k ), a SEP-IRA and a SIMPLE IRA . In deciding which plan is right for you , you ’ ll need to consider several factors , including the number of employees , if any , and the nature of your business . However , all these plans are relatively easy to set up and administer and offer potential tax benefits . And even though you ’ ve got plenty to do already , you should make the time to establish or review your own retirement plan – because eventually you ’ ll need all the resources you can accumulate to enjoy life as a
former business owner .
You can also find valuable information on programs for women business owners by visiting the Small Business Administration ’ s website at www . sba . gov and searching for “ women-owned businesses .”
Running your own business can be challenging – but by making some positive financial moves and getting the support you need , you can also find business ownership to be highly rewarding , personally and professionally .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor . Edward Jones , Member SIPC
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