Business owners’ optimism might mean it’s time to incorporate

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Some say the economy is slow to recover, but if business owners’ optimism is any indication of the things to come, turnaround may come sooner rather than later. A recently released survey from the National Federation of Independent Business shows entrepreneurs’ confidence is at its highest point since September 2008.

The NFIB’s Index of Small Business Optimism gained 3.8 points in April, signaling potential economic recovery. According to the report, business owners are very satisfied with their inventory stock and may add in the near future, though not aggressively.

The percentage of business owners who reported “weak sales” as their top problem dropped by 5 points in April. This correlates with reports from the Conference Board that the Consumer Confidence Index increased last month, as well.

NFIB officials believe national recovery will be stronger with increased small business formation rates, and perhaps the optimism of small enterprise leaders will spur more SMB growth.

With evidence that the SMB climate is improving, current business owners may consider investing in business incorporation to make the most of tax credits and protect their personal assets in the recovering economy.