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

[Reginald Noble]

I've only been incorporated for 3 years and have a $1k annual revenue, it is purely supplementary to my full-time job.

Looks like AMX is desperate for business clients even small ones.

nikkas need to get on this shyt. Setup an LLC or get a Sole Proprietorship going. I feel like my skin whitened a little bit when the sister told me over the phone I was approved .

(I bet if my name was Jamal or Abdul though they wouldn't have even sent me an RSVP in the first place )

My accountant told me to setup an S-Corp cause that's what White people do to reduce personal income tax paid. I only took him half serious and was like alright. This was 4 years ago when I was making like 45k which is nothing. He wasn't joking. Now I'm at double the amount so I have the longevity and income to start playing the big boy game. That taught me as Black folk we got to start thinking about 5 years from now not just tomorrow. (My accountant is Black originally from Yonkers but now based in the ATL)

They only asked me a couple basic questions about my business. Didn't have to send my tax returns or nothing.

@DrX get in here bruh you was the one who was like you hustling to start your own biz. This is what you gotta do man. Keep in mind this is separate from your personal credit but based off of it.

I just got this shyt in the mail and wasn't even really thinking it was that serious. They'd probably throw a nikka a $3-5k limit or something like that based on my annual revenue.

They starting to open shyt up and we got to capitalize on it. This shyt could serve as a fallback in case I lose my gig and need to survive for a couple months. But it's only for responsible people cause your D&B will be fukked up if you not careful. Apparently this shyt won't be reported on my personal credit utilization at all but my business record. It's a little complicated but basically if I were to have any issues with this card my "business" profile would be fukked up and a red flag would pop up anytime my S.S. is ran for any other type of business credit line.

This is why you got those Chinese mofos using like 10 Social Security numbers and they just default on business loans, file chapter whatever - Close shop - Then Re-incorporate under Mr. Chang's 4th cousin "New Rice Pad LLC Part V" using his S.S.

I'm really starting to learn how this game works man and making these mental connections here. I know these CPA nikkas know what this shyt is all about

@Domingo Halliburton what is your take on this man. There has to be a catch to this. AMX going bankrupt? I know they struggling a little in the consumer market cause a lot of businesses don't accept them anymore - their protections are too strong for consumers for a lot of purchases.

 

[Hawaiian Punch]

I'm just reserving a spot to soak up some game

 

[ill]

You still have to pay back your credit cards so big limits may not mean anything if you can't afford 15k spending per month

 

[Domingo Halliburton]

I've only been incorporated for 3 years and have a $1k annual revenue, it is purely supplementary to my full-time job.

Looks like AMX is desperate for business clients even small ones.

nikkas need to get on this shyt. Setup an LLC or get a Sole Proprietorship going. I feel like my skin whitened a little bit when the sister told me over the phone I was approved .

(I bet if my name was Jamal or Abdul though they wouldn't have even sent me an RSVP in the first place )

My accountant told me to setup an S-Corp cause that's what White people do to reduce personal income tax paid. I only took him half serious and was like alright. This was 4 years ago when I was making like 45k which is nothing. He wasn't joking. Now I'm at double the amount so I have the longevity and income to start playing the big boy game. That taught me as Black folk we got to start thinking about 5 years from now not just tomorrow. (My account is Black originally from Yonkers but now based in the ATL)

They only asked me a couple basic questions about my business. Didn't have to send my tax returns or nothing.

@DrX get in here bruh you was the one who was like you hustling to start your own biz. This is what you gotta do man. Keep in mind this is separate from your personal credit but based off of it.

I just got this shyt in the mail and wasn't even really thinking it was that serious. They'd probably throw a nikka a $3-5k limit or something like that based on my annual revenue.

They starting to open shyt up and we got to capitalize on it. This shyt could serve as a fallback in case I lose my gig and need to survive for a couple months. But it's only for responsible people cause your D&B will be fukked up if you not careful. Apparently this shyt won't be reported on my personal credit utilization at all but my business record. It's a little complicated but basically if I were to have any issues with this card my "business" profile would be fukked up and a red flag would pop up anytime my S.S. is ran for any other type of business credit line.

This is why you got those Chinese mofos using like 10 Social Security numbers and they just default on business loans, file chapter whatever - Close shop - Then Re-incorporate under Mr. Chang's 4th cousin "New Rice Pad LLC Part V" using his S.S.

I'm really starting to learn how this game works man and making these mental connections here. I know these CPA nikkas know what this shyt is all about

@Domingo Halliburton what is your take on this man. There has to be a catch to this. AMX going bankrupt? I know they struggling a little in the consumer market cause a lot of businesses don't accept them anymore - their protections are too strong for consumers for a lot of purchases.

No they're not going anywhere. A lot of merchants don't like Amex because they charge higher fees than other credit cards. What's the interest rate looking like on that line of credit? They must be looking at your income from your job when they extended that to you because there's no way $1k a year could service the debt.

 

[ORDER_66]

What is an S-corp???? How much does an LLC cost to set up and how do you set it up???

 

[Reginald Noble]

You still have to pay back your credit cards so big limits may not mean anything if you can't afford 15k spending per month

If you watch Shark Tank a lot of businesses can't grow because they are cash strapped in the short term. They can't make certain moves because they don't have free cash on hand or maxed out on credit. This is like the equivalent of a biz that gets 100k in revenue annually getting a million dollar credit line. It opens up doors that they couldn't have before.

Imagine if a dude in Germany said you know what I will sign a biz deal with you but you got to figure out a way to get over to Hamburg and set up shop there locally.

Like I don't have the money in my pocket like that to be just up and relocating. But imagine he said we can do relocation assistance (and puts it in writing in the contract) but needs to be reimbursed after the fact.

There are a lot of companies that do that shyt too. Like if I were to move for a job abroad but they can't pay my plane ticket or apartment down payment.

shyt like that is what a high limit can give you that flexibility to make shyt happen you couldn't otherwise. nikkas gotta think WAY BIGGER than just the day-to-day man.

 

[Reginald Noble]

What is an S-corp???? How much does an LLC cost to set up and how do you set it up???

LLC would be ideal because it offers protections to multiple people involved and limits the liability hence the name is Limited Liability Corp. But it's a bytch to setup and you need a lawyer not just your CPA accountant although a lot of CPAs have the legal knowledge to do it alone.

S-Corp is much easier but you as a person take on more individual liability and risk. If someone didn't like a service i provided they could try in court of law to go after any of my personal assets. But as far as taxes you get a huge benefit from an LLC and a modest benefit for an S-corp to a lesser extent.

There are many pros/cons to cover between them both. But at bare minimum an S-Corp is an easy way to free up extra cash and reduce liability for a small shop where it's just you.

If you got an actual company going that relies on labor and shyt - You'll probably want an LLC. My biz is contractual and services oriented so there's very few circumstances where somebody could sue me because my exposure is limited due to my industry.

I usually provide SOWs (Scope of Work) via e-mail so I could easily win any argument in small claims court. As long as you leave a paper trail an S-corp should be fine and if you don't have a physical business or some type of service where you need liability insurance. That's where it becomes hairy and you lean towards an LLC most likely if you provide a product that could potentially lead to injury of some sort.

Either way you need an accountant and a dedicated one like I have. He takes the management fees out of my personal tax returns. I pay him about $250-500 a year out of my tax refund to manage my personal and S-corp NYS/IRS shyt and handle ad hoc requests and advice. It's a very low cost when you think about what it takes to maintain a good relationship with a CPA you can trust. It's more expensive than H&R Block - But H&R Block doesn't give you what I get from this guy. He's essentially my personal accountant - And when I succeed he succeeds.

 

[Reginald Noble]

No they're not going anywhere. A lot of merchants don't like Amex because they charge higher fees than other credit cards. What's the interest rate looking like on that line of credit? They must be looking at your income from your job when they extended that to you because there's no way $1k a year could service the debt.

Yes, obviously they looked at my personal income but it makes no sense for the following reason:

1) I have a personal credit line of only like $2k (all Citibank thought I was worth after borrowing $1k in Dec and paying off the full bill in Jan, WTF) I applied for credit limit increase after that and they said try again in 6 months
2) I know they have my S.S. # but how do they actually verify that I am really making this kind of money? Is it based off of my payments on my other credit card and they project based on that? I know they don't have access to see your wages like that
3) Here's the kicker. My APR for Citibank card is some astronomical shyt like 29% after 9 months which is the same as the max penalty APR for any credit card (It was either that or a bullshyt $300 BOA secured CC which wouldn't be worthy my time). My APR on the business card is 19% at the highest. My personal CC Score is about average, 670. The APR is high because of some late payments I had in '12. (Looking to increase it to 700 by the end of this year) I was gonna drop this card at the end of the year and re-apply for a better one after demonstrating my ability to pay over the course of the year. But after this approval fukk it, I'll just run like 1 bill thru this shyt a month so my utilization will show up as like 10% and let it just passively build the score over time. I have been trying to apply for biz credit for a while because the APRs and penalties and shyt are always lower than consumer.

This is something nikkas need to pay attention to. This is why White people stay rich because they know the laws and standards. Businesses are given more leeway than individuals.

 

[无名的]

You're bragging about a 10 to 15k credit line on 1k annual revenue and asking if Amex is on the verge of bankruptcy?



Motherfukker you're on the verge of bankruptcy by getting excited over this shyt. You're going to spend yourself into Bolivian.

 

[☑︎#VoteDemocrat]

@UltraKombo What do you do with this business?

 

[theworldismine13]

Cool, just don't spend it

The gist of what you are saying is very true, everybody should register a business and develop their business credit just off gp

 

[无名的]

@UltraKombo What do you do with this business?

1k revenue... sells lemonade?

 

[Reginald Noble]

You're bragging about a 10 to 15k credit line on 1k annual revenue and asking if Amex is on the verge of bankruptcy?



Motherfukker you're on the verge of bankruptcy by getting excited over this shyt. You're going to spend yourself into Bolivian.

Maybe you would I am thinking 10 years from now breh

@UltraKombo What do you do with this business?

Consulting businesses on their online marketing strategy, it's just a hobby really outside of my full time job in the field. When I get really ramped up on consulting I'll need both the incorporation so that businesses can fill out a W-9 and the credit line to purchase analytics tools and other shyt to service them.

Cool, just don't spend it

The gist of what you are saying is very true, everybody should register a business and develop their business credit just off gp

I know it's gonna come in handy when I'm making my moves internationally 5-7 years from now. The key is to get in, let that biz history grow. AMX is accepted internationally and I'm gonna make sure there's no fees associated with this card. BOA had the nerve for my biz checking to charge me a couple cents on the Yen while I was in Japan last year. CACs do this all the time and the Chinese actually do it the best. I met this Chinese dude who had like 3 biz credit cards with like 100k each limit. Those nikkas game the system so well they spank it. His balance was zero because he uses it to buy and flip office real estate and re-sell at a profit. nikkas only thinking about buying rims and shyt these Chinese are buying homes and property, giving it that Ming Empire shine and then re-selling at 2x the market value in some areas in Queens

 

[humble forever]

You're going to spend yourself into Bolivian.

 

[无名的]

Maybe you would I am thinking 10 years from now breh

Nah, breh. You just sounded excited you had some credit extended and wanted to bring you back down to earth because this is what these credit card companies do. If you think people are gaming the system, they are statistical outliers who are probably putting themselves at risk of prison. The reason those statistical outliers can even eat off the system is because there are so many people like you, who get excited about extended credit, don't wisely spend and then get the dogs unleashed on them when they can't repay what they owe, which let's the credit card companies cake after they've squeezed every last penny from you. A few people gaming the system is peanuts compared to the inordinate amount of people paying exorbitant interest on balances they can't pay back in full.

Good luck, just want to be a cruel voice of reason to help you be cautious because too many people aren't and they get fukked.