Sean Vonfenton isn’t your traditional entrepreneur. Instead of starting a business to sell regular products and services in order to generate revenue, Vonfenton discovered the great tax advantages and limited liability of owning a corporate entity.
Vonfenton, a 1-800Accountant client, launched Von Holdings, Inc. in Delaware back in December 2013. He has one owner in the business and is essentially able to run it all right from his tablet computer.
“Initially, we will buy bonds, equities, and certificates of deposit,” Vonfenton explains. “Once we have enough capital, we plan to get into the lending area. I like to say we are a quasi-investment and lending firm.”
He explains the real reasons why he felt starting a business was a beneficial move for him to make in his career.
“It just makes sense mathematically,” he says. “There are more financial and liability advantages to own assets through a business than to own them personally.”
While Vonfenton does not have a lengthy professional background in the financial world, he says he has taught himself the basics on investments, stocks, bonds, and finance. This is another reason he decided to launch his own small business. In addition to operating Von Holdings, Inc., Vonfenton serves part-time in the military.
Vonfenton explains what he feels is the key to sustaining his company long-term.
“It’s all about the rule of 72, which is the ability for money to compound over time. I needed to make sure the cost of running the business is below the income the business generates. This can obviously be applied to any situation in order to turn a profit.”
Since Von Holdings, Inc. is still a relatively new firm, Vonfenton has lots of ideas for future growth and opportunities. He hopes to provide angel investing options for small business owners.
Competition in the Finance Field
The finance industry is very competitive and highly regulated in many cases, he says. So he realizes there are lots of other finance and investment firms with similar goals to what his business does.
“You really have to have enough capital for this, and you have to play by the rules,” he explains.
While his type of small business isn’t allowed to advertise or solicit for customers, Vonfenton does hope to offer loans in the near future. This type of service would be marketable, he says.
Advice for Entrepreneurs & Small Business Owners
Thanks to his own experience, Vonfenton points out that there are some very complicated aspects involved in starting a business. They include handling all the paperwork, establishing a bank account, and ensuring a company is compliant with all regulatory agencies, including the IRS.
As a client of 1-800Accountant, Vonfenton says the national accounting and business consulting firm has been able to assist him with his business tax situation.
Image credit: The image included in this blog post is used with permission via the Creative Commons license through Flickr.