How to get a Small Business Loan – Part 1
We have the solution for small business loan along with a full complement of proven lenders along with their requirements. Structure is a key component, just as a solid foundation is to a building. ISG3.com
The first decision you need to make as you launch your business is what kind of organizational structure it should have. Should it be a sole proprietorship? A partnership? A corporation? A LLC? A Trust? A Non-Profit? Lets examine the types of legal entities that are available for use as a business and the pros and cons associated with your. Once you decide which one is best for your situation we will begin the process of acquisition or conversion from one type to another….S- Corporation … LLC … C-Corporation … Sole Proprietor … Partnership … also the benefit of a COPES qualified entity.
Also you may need to do an Application for Registration of an Assumed Business Name or in some states it is called a Trade-name / Trademark or Service Mark for some sole proprietors. You will have to file this with the Secretary of State if you plan to start a sole proprietorship, general partnership, or association. Once approval is given, your business name will be registered with the state.
We highly recommend a trademark / servicemark for every business. This identifies you as a real operating company, not to mention that a trademark / service mark can be used as collateral in a large loan situation as it does have value to the business. This is a credit cheater spoiler!
No Articles / By-Laws / Operating Agreement – No Bank Account – No Business Credit – No Small Business Loan!
Corporation – Articles of Incorporation. These are required of corporations or individuals who wish to do business in every state through a corporation legal entity. Nonprofit corporations must also file Articles of Incorporation.
You will also need to prepare what is called the company by-laws that direct the company on its operations.
LLC – Articles of Organization/Operating Agreement. File these with the Secretary of State’s Office if you want to form a limited liability company.
You will also need to prepare what is called the company Operating Agreement, which is the LLC’s version of by-laws, that direct the company on its operations.
Pick an Address!
The Business Location is important for commerce and that relates to getting a small business loan!
Location – Location – Location is what you hear in the restaurant and auto sales industry along with a plethora of other retail businesses.
With most full blown businesses a commercial location is ideal and required for many businesses, however many times a new business cannot afford the cost of a separate location nor really need this expense. Take for example internet bloggers, webmasters, internet advertising and marketing companies really have no need for a full blown office, unless the owner has additional employees or finds working from home too much if constantly suffering interruptions or can’t stay focused due to some other forms of distraction.
Do the majority of our clients have a full blown retail location? No way! Most of them cannot justify the added cost based on the fact that they may work on the internet or telephone all day. So, the only viable options left to one is either a virtual office $50 – $200 per month, executive office $450 per month (or thereabouts). When using this strategy avoid the extremely large virtual office companies – you know the first 10 that show up in a google search. Use the small provider in that area as they most likely have not had any business failures or defaults at that address, unlike many of the larger virtual offices.
To learn more you can continue to part 2 or better yet enroll in the business credit seminars or purchase the Credit Mastery Books to help get a small business loan.
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