Starting a business isn’t just for the young
If you're an older American and considering forming a limited liability corporation, you're not alone. A study published last year by the Kauffman Foundation and Legal Zoom found that roughly 35 percent of all new businesses are started by those 50 and older. Nearly half of those are started by people over 60. In fact, entrepreneurship is most popular among those between 55 and 64, according to the Kauffman Index of Entrepreneurial Activity.
There are several factors behind this. For one, older people generally have the experience and skills necessary to become leaders in the field. With the job market remaining tough, especially for those over 50, many are choosing to set out on their own path. In addition, they are often drawn to the possibility of doing meaningful and fulfilling work at that stage of their lives, and have saved up the capital to do so without needing to secure massive amounts of outside investment. They also have a keen understanding of the hard work involved in fulfilling their ambitions, and may very well have worked with a wide range of different people.
"For the longest time we've assumed that social entrepreneurship was the exclusive provenance of young people," said Marc Freedman, founder and chief executive of Encore.org, the nonprofit research center dedicated to second acts for the greater good. "Now we're realizing an undiscovered continent of innovation in the growing population over 50."
One of the major hurdles that seniors face when looking to strike out on their own is dismissiveness. Despite the large numbers in which older Americans are creating businesses, many banks still show age bias when determining whether they will lend their support and financing. In addition, many of the ideas that seniors promote are small in scope, which can cause a banker to reject them as "not worth the energy."
Luckily, however, forming a corporation doesn't have to be an extensive and time-consuming process. For just a small incorporation and registered agent fee, you can be well on your way to company ownership. An incorporation services company can help with the details of filing paperwork and checking company name availability.
Start-ups aren't just for young people looking to sell their newest application. Entrepreneurship knows no age restriction, and experience can be a major benefit when it comes to creating a new business.