Reply With QuoteI work for a Bank in the SBA division. (I also do R/E on the side) But if you need any questions in regards to financing for the business let me know what your plans/ideas are and I can tell you what you need to do.
Does anyone here own a small business? Did you buy complete or did you build? What does one need to do to purchase a small business? I realize this is fairly personal, if you would like to PM that would be fine. I would just like some ideas and suggestions.
Thank you
Shawn
I work for a Bank in the SBA division. (I also do R/E on the side) But if you need any questions in regards to financing for the business let me know what your plans/ideas are and I can tell you what you need to do.
You really need to expand on what kind of business it is. Retail? Manufacturing? Will you provide a service or a product or both? I will tell you from experience, any time you start a business, have at least enough of an emergency fund to survive the first year with no profits.(Breaking even) It's better if you take on little or no debt, even if you have to rent or lease a building. That way if it goes wrong, you can get out of the lease instead of owning a building you can't use.
TOT, check your PM's. Highroller, we are looking at a Tanning salon.
Be cautious when buying or setting up a small business. If it goes south creditors can take all your possesions, house, cars, etc. Look into a small corporation, Nevada and some other states ahve business laws which help protect small corporations from taxes, etc. Just some ideas.
Well for sure we would want to be an INC. Im not having anything taken from me. Thank you guys for the replys. We have been sitting on the idea for quite some time now. I think maybe its time to do something about it.
Definately want some sort of asset protection, like LLP, LLC or INC. but don't think that will obsolve you of all obligations. Many Universities and Colleges are happy to help develope business models for new entrepeneurs, so give them a call.
Hide all the liquor, and take the step...A failure is only a failure if you don't learn from it.
Nice to know! Thanks Scream!
Don't get too reliant on corporate protection, there are a lot of things that will pierce the corporate veil. Incorporating is a good idea but for a really small business you can also protect yourself by paying yourself a regular dividend. Anytime the cash in the business account builds up to a level more than what you need, pay yourself a dividend or bonus. It's harder for an attorney to go after your personal assets than your business accounts. Again, Emergency Fund!!!I can't stress this point enough. It's not IF things will go wrong, it's WHEN! 78% of businesses have an unexpected event within the first two years that requires emergency cash. I know I'm being redundant, but that one thing will eliminate your stress and let you operate from a position of confidence instead of fear. Finally, start a bank account just for your quarterly estimated tax payments and put 25% of your revenue in it. That way you won't be caught with your pants down when it's time to pay your quarterlies. You'll have enough in the account to pay the taxes plus your accounting/book keeping fees too.
This is all really great advice. Im actually learning something on the boards today. Thanks again guys
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