A Graduate’s Guide to Funding Their Own Venture

Choosing a career path is one of the most important decisions in your life, and the right choice now can decide where you are in ten years. When you study in college or university, the future looks serene, but it can be tough and challenging in no time. While some choose to have a profession with a stable income, those with entrepreneurial minds often look to start their own businesses. It is a much welcome action, as small businesses have long been the backbone of the economy. 

Although there are many successful freshmen startups, a lot of students with potential business ideas don’t know how or where to start. One of the most important decisions a student has to make when starting out their own business is to decide how they fund their own venture. If you are thinking about starting your own business right out of college, it’s important to do your research and look for information from the graduate entrepreneurs. 

Below is a quick look at some business funding structures to help the business giants of the future.

Limited Liability Companies

A lot of entrepreneurs look for a partner to share the funding and the responsibilities of running the business. Most partnerships end up creating their own limited liability company (LLC). It is a popular choice for its combined benefits of corporation and partnership structures. 

Many new startups in the US are looking at this structure as it provides more protection which is important in these post-Covid times when money is tight. When starting a limited liability company in South Dakota or anywhere across the States, you and your partners won’t be stuck with a big tax bill. In fact, as founders, you may even be able to deduct your losses from your personal tax returns. However, as a member of an LLC, you will have to pay self-employment tax contributions. This is an ideal choice for medium and high-risk businesses where you and your partners hold a significant amount of personal assets.

Sole Proprietorship or Self-Funding

This is typically used by small business entities as they are just starting out with their own savings. In a sole proprietorship, the business is owned by one person and its assets and liabilities are not separate from your personal assets. That means that if there are any business debts or obligations, you will be held personally responsible for them. This can be a good choice if your start-up is in a low risk field, but there may be restrictions on tax when converting your business structure later on.


Recently crowd-funding has become one of the most popular ways to fund college startups. You can put a detailed description of your business idea on a crowdfunding platform, and when potential customers read about your business, if they like the idea, they can make a contribution to your launch. The good thing about crowd-funding is that it generates interest and markets your products and services while financing the business. You can also use this way of venture funding to test if there is any interest in your products. The downside of crowdfunding is that it is a competitive place, so unless your idea is rock solid, you may find that it doesn’t work for your business.

If you are looking to make your business ideas into a reality, this guide should help. At the end of the day, it’s important to remember that the way you fund your venture will heavily affect the way you run your business in the future.  You should also consider macroeconomic ecommerce trends before you apply for crowd funding.


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