:Wow: Just Got Approved for a $10k-15k Business Credit Line from American Express for my S-Corp

[Apollo Creed]

I Knew about the LLC stuff but never knew the details, I said I was going to do this because when I worked in Wireless back in College I noticed all the white folks had "consulting companies" and literally wrote everything they did off as a business expense.

Where do I need to go to get the actual "game" in detail?

 

[Reginald Noble]

I Knew about the LLC stuff but never knew the details, I said I was going to do this because when I worked in Wireless back in College I noticed all the white folks had "consulting companies" and literally wrote everything they did off as a business expense.

Where do I need to go to get the actual "game" in detail?

The first thing you need is to form a relationship with a good accountant. There are two people that CACs rely on and that's a good CPA and a good Lawyer.

Find a local accountant that will help you setup the articles of incorporation and setup the relevant company structure for your state/municipality. It depends on what state you are in as to how much you will have to pay to maintain it per year. I have to pay generally about $250 to the accountant per year to manage the paper work and the income statement. He takes it out of my annual tax return. We write off business expenses as a loss which is phone bill, part of rent and a little bit of travel along with my LinkedIN premium subscription, etc.

He does a Q4 earnings report every year and report no income for the other four quarters of the year. Setup a Sole Proprietorship first. Don't do an LLC unless you have at least 2-3 other people you trust in family or friends to pool the resources to get that setup.

Don't do any of this at H&R Block. Shop around for an accountant that is looking to make long-term connections and help grow your wealth.

 

[Apollo Creed]

The first thing you need is to form a relationship with a good accountant. There are two people that CACs rely on and that's a good CPA and a good Lawyer.

Find a local accountant that will help you setup the articles of incorporation and setup the relevant company structure for your state/municipality. It depends on what state you are in as to how much you will have to pay to maintain it per year. I have to pay generally about $250 to the accountant per year to manage the paper work and the income statement. He takes it out of my annual tax return. We write off business expenses as a loss which is phone bill, part of rent and a little bit of travel along with my LinkedIN premium subscription, etc.

He does a Q4 earnings report every year and report no income for the other four quarters of the year. Setup a Sole Proprietorship first. Don't do an LLC unless you have at least 2-3 other people you trust in family or friends to pool the resources to get that setup.

Don't do any of this at H&R Block. Shop around for an accountant that is looking to make long-term connections and help grow your wealth.

Now my plan was to take out loans against the business and pay them off right away since it would probably be tiny loans they approve me for being that I would have no business credit. Is it as simple as going into a bank/my banker and requesting a loan or do I have to draw up a business plan each time.

also is it an issue if I have business expenses and no revenue? Or should I just flip some stuff on eBay and count it as revenue?

I plan on starting businesses but just not at the current moment. I was thinking doing this would establish business credit and in return help me out later when I really need it.

 

[Reginald Noble]

Now my plan was to take out loans against the business and pay them off right away since it would probably be tiny loans they approve me for being that I would have no business credit. Is it as simple as going into a bank/my banker and requesting a loan or do I have to draw up a business plan each time.

also is it an issue if I have business expenses and no revenue? Or should I just flip some stuff on eBay and count it as revenue?

I plan on starting businesses but just not at the current moment. I was thinking doing this would establish business credit and in return help me out later when I really need it.

The eBay idea is perfect. My boy does this all the time and he refuses to incorporate so eBay makes him fill out 1099s and shyt and he losing money essentially.

It's ideal if you have some revenue but not essential. Money from your W-2 can be counted as "revenue" to a certain extent for the S-corp. That is the benefit of this, because the President's financial contribution to the company generally doesn't raise red flags. It's when someone wants to invest and shyt like that - That's when you got to consider other options and morph the corp into a different type of legal entity.

I said the same thing to him I said I am not starting the business really like that right now. He said set it up so later on when you do actually become active everything is ready. It makes sense now because a lot of businesses will get credit based off of GP if it's incorporated 5 years or more. I managed to get a line of credit with only 3 years of minimal activity. Probably has something to do with the Fed and Interest rates.

Taking out any loan is a pain in the ass - I would advise applying for a business line of revolving credit which will be reported to your Dunn and Bradstreet. In absence of revenue demonstrating a good record of credit with any lender will set you up to automatically qualify for a big loan down the line.

 

[Apollo Creed]

The eBay idea is perfect. My boy does this all the time and he refuses to incorporate so eBay makes him fill out 1099s and shyt and he losing money essentially.

It's ideal if you have some revenue but not essential. Money from your W-2 can be counted as "revenue" to a certain extent for the S-corp. That is the benefit of this, because the President's financial contribution to the company generally doesn't raise red flags. It's when someone wants to invest and shyt like that - That's when you got to consider other options and morph the corp into a different type of legal entity.

I said the same thing to him I said I am not starting the business really like that right now. He said set it up so later on when you do actually become active everything is ready. It makes sense now because a lot of businesses will get credit based off of GP if it's incorporated 5 years or more. I managed to get a line of credit with only 3 years of minimal activity. Probably has something to do with the Fed and Interest rates.

Taking out any loan is a pain in the ass - I would advise applying for a business line of revolving credit which will be reported to your Dunn and Bradstreet. In absence of revenue demonstrating a good record of credit with any lender will set you up to automatically qualify for a big loan down the line.

I`m going to PM you, if its possible for you to email me a 1.2.3 type list of what I need to do or research to get this done.

 

[theworldismine13]

Behalf | Simple Small Business Financing is a good place to get credit, they dont check your personal credit( well they never checked mines) i think they just check DnB, you can only use the credit on places that are in their vendors list, but their list is pretty big and growing, you can use your credit at walmart or target for example

also Business Credit & Financing - Get Approved | Nav is good site IMO

I have an ebook on business credit, ill post up later when i find it

 

[Reginald Noble]

Behalf | Simple Small Business Financing is a good place to get credit, they dont check your personal credit( well they never checked mines) i think they just check DnB, you can only use the credit on places that are in their vendors list, but their list is pretty big and growing, you can use your credit at walmart or target for example

also Business Credit & Financing - Get Approved | Nav is good site IMO

I have an ebook on business credit, ill post up later when i find it

Thanks Breh. I have Credit Karma for my personal credit monitoring now I'll use Nav for the business end of it. Appreciate it.

 

[无名的]

I just got immediately approved for a 100k loan on Sofi 5 year repayment 6% interest rate

 

[Monster]

Ts. Do you have to have a good credit score to get this?

I just got immediately approved for a 100k loan on Sofi 5 year repayment 6% interest rate

How do you do it?

 

[Swirv]

Its how they all do it. Borrow a bunch through an entity, hope for the best and file a chapter if it doesnt work.

Amex and other business funder have been sending me offers non stop the past 3 years.

Servicing the debt is the hardest part brehs. But you can always refinance if the market conditions are good for the bank.

Creating an entity is the first step and it is very easy. Go to your State's secretary of state website for more info and filing fees.

 

[Swirv]

The first thing you need is to form a relationship with a good accountant. There are two people that CACs rely on and that's a good CPA and a good Lawyer.

Find a local accountant that will help you setup the articles of incorporation and setup the relevant company structure for your state/municipality. It depends on what state you are in as to how much you will have to pay to maintain it per year. I have to pay generally about $250 to the accountant per year to manage the paper work and the income statement. He takes it out of my annual tax return. We write off business expenses as a loss which is phone bill, part of rent and a little bit of travel along with my LinkedIN premium subscription, etc.

He does a Q4 earnings report every year and report no income for the other four quarters of the year. Setup a Sole Proprietorship first. Don't do an LLC unless you have at least 2-3 other people you trust in family or friends to pool the resources to get that setup.

Don't do any of this at H&R Block. Shop around for an accountant that is looking to make long-term connections and help grow your wealth.

Bad advice. You absolutely don't want to start a sole propriertorship. Llc, corp, llp etc will shield your personal wealth in the event of litigation as long as you keep business and personal money separate.

This is how Donald Trump has been able to bankrupt his companies without bankruptin himself. Although he did mess up once by commingling his monies and he was exposed.

 

[Reginald Noble]

Bad advice. You absolutely don't want to start a sole propriertorship. Llc, corp, llp etc will shield your personal wealth in the event of litigation as long as you keep business and personal money separate.

This is how Donald Trump has been able to bankrupt his companies without bankruptin himself. Although he did mess up once by commingling his monies and he was exposed.

You can't make an LLC/LLP usually without extensive upfront costs which is usually not realistic for a young entrepreneur. An S-corp is the ideal first step to gain experience with the processes required to maintaining an LLC. I've attempted to make an LLC before and it dissolved before inception because the co-founders were not ready to put up the investment required for the costs to incorporate and maintain. There are legal and accounting costs annually that go into any corp and an S-corp is the most affordable from a financial standpoint for budding entrepreneurs.

Setup the S-Corp first, gain experience and then upgrade to an LLC once you have sufficient capital or partners that will stick in it for the long haul.

It is overall much harder to make an LLC look "legit" than an S-corp and that's where the increased costs come from.

 

[GetitGone]

I`m going to PM you, if its possible for you to email me a 1.2.3 type list of what I need to do or research to get this done.

Can you send me the same please?

 

[Reginald Noble]

Can you send me the same please?

I referred him to an accountant in his area, where do you live?

You have to network and find a good CPA. I can't give a step-by-step because I was guided through the process and my CPA did the back-end work. This is not just for you but everyone else inquiring:

I wouldn't do this shyt on my own for the simple reason I have an appreciation for specialization. People outsource paid and organic marketing to me for the same reason I let the CPA do his magic. It takes 10,000 hours to be an expert in something. There are 2,000 average working hours per year. So this means you do something in an industry for 5 years and you've pretty much got it down pat. This guy has done 20,000+ hours in accounting and finance at PWC and EY. I've been doing online marketing with large fortune 500s for 5 years now. You can try and DYI or you can hire me (to do your marketing or him to do your finance), but by doing the former the opportunity cost is huge and your margin for error is very narrow.

I'll give you a prime example, one of my side clients is ramping up now and they want to get their local search engine presence in order. I have experience dealing with Yelp, YP, Google Places all that stuff. Basically they e-mailed me the other day asking for help because they didn't know how to fill out the form to get the automated call to verify the business. This would only be the first step. There are like 5 more steps involving back linking and shyt which they would scratch their head over if they had to read and learn about how to do it. All B2B processes are unnecessarily complex and most business owners don't have time to do anything properly and it stresses them out to have to manage all of these processes. There are a million and one nuances to any process in business including marketing, sales, payroll, sourcing and everything else. With this corp thing, for NY you got to fill out NYS-45 and a few other ones several times a year. He does all that for me. A lot of us are raised to believe "You can do it all". No you can't. You can do it all shytty or you can do a few things right. Anyways, to me this local search stuff is 1-2-3 because I've done it already for big companies with even more complex requests regarding local search management paid and organic. I know what's feasible immediately and what's not. I said to them I will handle it and have all the sites queued up and ready for the automated call to verify the biz tomorrow at 11am. It will take me 20 min what will take them 2 hours to figure out or more.

Long story short that is why you pay and hire a CPA, of course you keep all paperwork and do a little research so you can basically follow what is happening. But leave the actual paperwork/filing processes to them, just worry about the outcome and any choices you may need to make.

 

[Swirv]

You can't make an LLC/LLP usually without extensive upfront costs which is usually not realistic for a young entrepreneur. An S-corp is the ideal first step to gain experience with the processes required to maintaining an LLC. I've attempted to make an LLC before and it dissolved before inception because the co-founders were not ready to put up the investment required for the costs to incorporate and maintain. There are legal and accounting costs annually that go into any corp and an S-corp is the most affordable from a financial standpoint for budding entrepreneurs.

Setup the S-Corp first, gain experience and then upgrade to an LLC once you have sufficient capital or partners that will stick in it for the long haul.

It is overall much harder to make an LLC look "legit" than an S-corp and that's where the increased costs come from.

How much were you being charged?

If you go through a lawyer they will charge. I would only use them to draft an agreement for instances such as this.