Sum Dum Gai
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Post by Sum Dum Gai on Apr 10, 2013 11:59:53 GMT -5
I'll be posting probably infrequent updates here as I go along.
First, how the heck am I financing the thing. I'm using my IRA money, which is a real pain in the ass due to prohibited transaction rules, penalties, taxes, and whatnot. There is a way to fund your own business startup or purchase with money in a qualified retirement plan. You have to create a C corp, yes it has to be a C corp but you'd have to ask a CPA why. He explained it but I didn't retain it. The new C corp sets up a profit sharing or 401k plan for its employees. You roll your IRA/401k into the new 401k or profit sharing plan. You use the money to purchase shares in the new company. That puts your money that was formerly locked in retirement accounts into your corporate checking account with no early withdrawal penalties or tax implications. It also means your current retirement account owns the company, not you, so that's where your profit will go, and any gains if you sell. If you want to cash out later and have the money come to you, you'd have to have the corporation buy back the shares from the retirement plan, then sell. If you do this as a C corp the tax bite will be enormous, so you usually elect to go chapter S after you buy back the shares then sell. This is my exit strategy in 6-10 years.
The IRS will fuck you up if you don't do this correctly. Lately they've been doing more audits of retirement accounts. Once you set this structure up you have to follow all the rules with the profit sharing or 401k plan. That includes the top heavy stuff, allowing all employees to participate, etc. The IRS penalties for not following the rules in that area can be as high as 110%, so if you fuck this part up you can lose your whole investment.
Anyway, that's where I'm at now. Waiting for all this to get set up. It should take a total of 2-3 weeks from start to finish. I'm hoping for two since I'm paying the bribe, they refer to it as an expedited processing fee, to the state for processing the incorporation documents.
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Deleted
Joined: Oct 7, 2024 16:34:39 GMT -5
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Post by Deleted on Apr 10, 2013 12:16:43 GMT -5
Wow, my head hurt from reading this. Why can't you just be an employee in a cubicle like the rest of us again? Good luck!
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kittensaver
Junior Associate
We cannot do great things. We can only do small things with great love. - Mother Teresa
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Post by kittensaver on Apr 10, 2013 12:17:46 GMT -5
Good luck, Dark. I know you'll do great .
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thyme4change
Community Leader
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Post by thyme4change on Apr 10, 2013 12:17:55 GMT -5
There is so much fucking in that post I thought it was a porno.
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milee
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Post by milee on Apr 10, 2013 12:18:12 GMT -5
What's the business?
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Deleted
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Post by Deleted on Apr 10, 2013 12:20:08 GMT -5
Yes Dark, what is the business?
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Deleted
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Post by Deleted on Apr 10, 2013 12:20:25 GMT -5
Good luck, Dark. I know you'll do great .
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thyme4change
Community Leader
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Post by thyme4change on Apr 10, 2013 12:20:27 GMT -5
Porno?
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Sum Dum Gai
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Post by Sum Dum Gai on Apr 10, 2013 12:21:04 GMT -5
Cubicles are soul sucking prisons of the man yo.
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Deleted
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Post by Deleted on Apr 10, 2013 12:24:51 GMT -5
Cubicles are soul sucking prisons of the man yo. Perfect for me since I have no soul
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thyme4change
Community Leader
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Post by thyme4change on Apr 10, 2013 12:25:46 GMT -5
Sucking and fucking? Guess what I'm going to say next...
Porno.
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Deleted
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Post by Deleted on Apr 10, 2013 12:29:19 GMT -5
Good one Cawiau... Good Luck Dark.
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Sum Dum Gai
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Post by Sum Dum Gai on Apr 10, 2013 12:29:52 GMT -5
Independent toy store.
ETA - Or adult bookstore. I haven't decided yet.
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Waffle
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Post by Waffle on Apr 10, 2013 12:33:13 GMT -5
Independent toy store. ETA - Or adult bookstore. I haven't decided yet. Combine the two - make it an adult toy store.
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souldoubt
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Post by souldoubt on Apr 10, 2013 12:35:03 GMT -5
Didn't this discussion come up before - you want to start a business but you really don't know what for sure. I realize you have two legit options you've put thought into but for me I'd have to know exactly what I want to do and be 110% in on it if I'm taking that leap. Then again I'll likely never own my own business because I don't have that desire or drive. Good luck.
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Deleted
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Post by Deleted on Apr 10, 2013 12:36:45 GMT -5
Independent toy store. ETA - Or adult bookstore. I haven't decided yet. Combine the two - make it an adult toy store. $$$$$ But don't make it one of those sleazy one that have the video booths in the back that people pay to watch porn or do what else. Go for one of those higher end one that cater mostly to woman. Here is a niche for you. Have rooms where they can rent and have parties/get together and someone there showing them how to properly use some toys/equipment a.
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Bob Ross
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Post by Bob Ross on Apr 10, 2013 12:37:51 GMT -5
Will you be offering $2 tug jobs in the alley behind said store? Because if so...
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thyme4change
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Post by thyme4change on Apr 10, 2013 12:39:13 GMT -5
Do they really have "adult bookstores" anymore - aren't they all just toys and lingerie now? [/span]
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Sum Dum Gai
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Post by Sum Dum Gai on Apr 10, 2013 12:40:31 GMT -5
The ETA was a joke since Thyme keeps mentioning porno.
Wait a minute... porn production company! It's a gold mine I tell ya. You have all these gamer dorks that sit in their mom's basement totally incapable of hooking up with real women, but nobody is making The Lord of the Cockrings, to target that market.
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Deleted
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Post by Deleted on Apr 10, 2013 12:44:58 GMT -5
Depending on how much you learn about the process as you go through it, a future business could be as a consultant to other business owners thinking of doing the same thing. Build a good group of professionals around you and be the guy that puts it all together.
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thyme4change
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Post by thyme4change on Apr 10, 2013 12:46:39 GMT -5
You would probably make more money as an adult toy store than a family toy store.
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Bob Ross
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Post by Bob Ross on Apr 10, 2013 12:49:42 GMT -5
The ETA was a joke since Thyme keeps mentioning porno. Wait a minute... porn production company! It's a gold mine I tell ya. You have all these gamer dorks that sit in their mom's basement totally incapable of hooking up with real women, but nobody is making The Lord of the Cockrings, to target that market. Dude. It's out there. Or something like it. I forget the name though. Google "Diddle Earth" or "Dildo Saggins" and I'm sure you'll find it.
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midjd
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Your Money Admin
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Post by midjd on Apr 10, 2013 12:50:11 GMT -5
Recession-proof businesses - porno stores, liquor stores, cigarette shops (or head shops in Cali, I assume). You can't go wrong by appealing to mankind's base desires...
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Deleted
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Post by Deleted on Apr 10, 2013 12:51:17 GMT -5
There was a cool store in Seattle called Toys in Babeland...
Good luck! Retail huh...
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Deleted
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Post by Deleted on Apr 10, 2013 12:54:00 GMT -5
You would probably make more money as an adult toy store than a family toy store. I have to agree and if you can tap in into the female population: - married for a bit - worried husband will leave - trying to keep things exciting To draw them in have a weekly reason of 50 shades of grey and presentation of a few techniques. Accessories for erotic massage, gags, cock rings, straps, etc. A room for bachelorette parties, a male/female strippers on call, etc. You will make money. Damn, I am getting ideas. How much do you think it is to start that business?
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Deleted
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Post by Deleted on Apr 10, 2013 12:54:39 GMT -5
I kind of like the name:
Toys and Tugs
or Tugs R Us
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Bob Ross
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Post by Bob Ross on Apr 10, 2013 12:57:34 GMT -5
Dude. One word: MIDGETS!!! You can thank me when you have ALL the money.
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Sum Dum Gai
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Post by Sum Dum Gai on Apr 10, 2013 12:58:59 GMT -5
Independent toy stores have been doing surprisingly well through the recession. In 2010 an average of $284 were spent on toys per child in the US. The large players, Toys R Us, Walmart, Target, etc. get less than half of it all combined.
Pretty much everyone looks at porn online at least occasionally. Most people won't walk into an adult toy store in person though.
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movingforward
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Post by movingforward on Apr 10, 2013 12:59:49 GMT -5
Best of luck to you Dark. Also, I am not trying to be debbie downer but when you were talking about doing this several months ago didn't you say something like it would be more for fun and that you didn't think you could make a living off of it. I am sure you have done more research since then and my memory could be muddled as well...
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Deleted
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Post by Deleted on Apr 10, 2013 13:00:33 GMT -5
Don't be silly.. women have those kind of parties in the privacy of their own home... they're not going to "walk into a place like that"... That is because they are always afraid to be judge. To this day my wife will not buy condoms. But if you know how to hit the right spot, a welcoming place where they will not feel judge and can easily frequent for an expert opinion (nothing shady, crazy) they will come and keep on coming.
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