The Kirkland-Based Fintech Startup Embraces the Latest Cloud-Accounting Technology, Find Opportunities Financial Decisions That Can Add Up to $20,000 to Users’ Annual Net Income
Formations, an early-stage FinTech startup, announced that it’s coming out of stealth to offer full-time self-employed a complete financial management solution to maximize the financial potential of their business and improve their financial wellbeing. Formations automates the creation and ongoing management of S-Corp, the most tax-efficient structure for small businesses, that allows self-employed to operate as a corporate entity. Using Formations, self-employed can achieve better financial stability, get real-time insight and recommendations on financial decisions, connect live with a certified bookkeeper and CPA, and gain access to Fortune 500-level benefits like health insurance and 401K.
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“The solopreneur market is quickly becoming the largest workforce in the US, yet it’s still underserved and doesn’t have the tools to thrive in today’s economy,” says Shahar Plinner, Founder and CEO of Formations. “This segment overpays on taxes, gets no financial guidance, has no access to benefits corporate employees have and receives no representation as a group. We are going to change that.”
According to the Census Data and the IRS, in 2016 there were over 24 million nonemployer establishments in the US, from which over 21 million were individual proprietorships and only 1 million were S-Corporations. In contracts, S-Corporations are the most popular entity for corporations in the US, with over 5.2 million S-Corps in 2017.
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Formations has developed deep partnerships with some of the most popular and advanced financial solutions in the market. It is a silver partner of Xero, the global small business platform, a silver partner of Gusto, the payroll solution, and has a strategic partnership with MyCorporation, the online document filing service. Partnering with these solutions gives Formations the technology backbone it will use to provide a holistic financial management solution for self-employed.
“We are building a solution that can allow self-employed to enjoy all the benefits corporations enjoy today, at a fraction of the cost,” says Uri Bar-Joseph, co-founder and COO of Formations. “We are making S-Corp and corporate finance accessible and affordable, just like website building, stock trading, investment or personal taxes have been democratized over the years.”
