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Looking to start a business? Don’t let the pandemic slow you down.

Entrepreneurs should not let the current COVID-19 pandemic thwart their dreams of starting a business. If you have an idea, know that you are not alone in kicking off a business endeavor. Recent data from LendingTree shows that there were more business applications in 2020 than 2019. Although this may come as a surprise, it is important to note that the pandemic offered an opportunity to reevaluate one’s working situation. This motivated some to pursue other options, particularly within the e-commerce sector.

What triggered growth?

In addition to the opportunity to reevaluate employment options, researchers with the study noted above point to aid available through the Coronavirus Aid, Relief and Economic Security (CARES) Act as a motivating factor for entrepreneurship.

Another factor: tax breaks. In many cases, businesses can get a 20% deduction for qualified business income — which can apply to business owners.

What should business owners know before starting their own enterprise?

Those looking to start a business should put together a business plan and review their desired market. This should include a review of business structure options. According to the Internal Revenue Service (IRS), the most common forms of business structures chosen by business owners include sole proprietorship, partnerships, corporations and limited liability companies (LLCs). Each has its own benefits and risks. Sole proprietorships, for example, offer flexibility and ease of formation but with minimal protection while an LLC or corporation may take more work to form but provides separation between the owner and business as well as potential tax benefits.

Choosing the right entity will require careful consideration of all the benefits and risks of each structure.

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