A proposal to boost the start-up survival rate

| Jul 20, 2017 | Business Formation & Planning

It is so easy to shop online. You don’t have to get into your car or brave the heat or traffic of a Brevard County summer day. You don’t have to walk the aisles of enormous stores and you don’t have to stand in line to make your purchase.

Add it all up and there is little surprise as to why online shopping is booming and bricks-and-mortar stores are hurting. Florida Congressman Vern Buchanan has what he says is a fix: the Support Our Start-Ups Act, which he says will help entrepreneurs successfully start up new businesses.

The Florida Chamber of Commerce backs the measure which would quadruple tax deductions for start-ups, helping to defray the burden that so often sinks new businesses in their first year. The Orlando Political Observer says if the measure becomes law, business owners could deduct up to $20,000 of their start-up costs from their federal taxes.

The publication notes that the increase from $5,000 in available deductions could be the crucial difference for many start-ups. The Bureau of Labor Statistics says only about 1 out of 5 businesses make it beyond their first year.

For many bricks-and-mortar stores, the competition these days is not only with the outlet down the street, but also with Amazon and other online retailers. According to reports, about half of all U.S. households now have an Amazon Prime membership.

One way bricks-and-mortar businesses survive is by enlisting the assistance of a business attorney who understands how to help entrepreneurs select the appropriate business entity form, examine commercial leases and franchise agreements and draft employment contracts and partnership agreements.