If you’ve been thinking of starting a business, the most recent stimulus might give you a push. The America Rescue Plan (ARP) has an amazing new incentive for people to start a business and hire new employees.
To help meet the goal of decreasing unemployment, businesses that started after February 15th, 2020 could be eligible for up to $100,000 in tax credits. Does this mean the federal government is basically giving away free cash?
How it Works
Let’s slow things down a bit. There are a few requirements for eligibility:
- Your business needs to have been established after 2/15/2020. So, even if your business isn’t brand new, you could still get the money.
- Your annual gross needs to be fewer than $1,000,000
- You didn’t claim employee retention credits and you didn’t fail the gross receipts test.
So, no. It’s not exactly a free $100k handout for every small or new business. But most brand new or recently started businesses could meet these eligibility requirements, which means it’s within your reach!
This sounds great, right? It’s definitely a fabulous program that could improve your financial possibilities and open up new opportunities. However, it’s a lot more complex than it seems and you should definitely talk to a financial expert to get detailed information.
If now’s your time for a new venture, you’ll want some assistance from a reliable accounting firm, like Integrated Tax. We can help you set up your business, manage your finances and payroll, and ensure they maximize the credits.
Get Your Accounting Services Consultation
Integrated Tax is a woman-owned accounting firm with services tailored to clients’ unique needs and goals. We guarantee that every service we provide is essential and propels your goal.
Contact us today for a free accounting services consultation. We have locations in Prior Lake, MN, and Ft. Lauderdale, FL, and can provide service to surrounding areas.