Business financing
My brother and sister-in-law have started the process of starting a new small business. They have taken extensive college courses in business, and think that they have found the perfect market niche, and the perfect location to open their business. They say that they are lining up their “ducks in a row” and are starting to look around for ways to increase their working capital.
One of the business courses that they took explained to them how to create a business plan to take to the bank when they apply for their business loans. The class explained to them the different types of small business loans, including the sba loans and the line of credit loans. They think that they want to just get a regular business loan, the line of credit loans sound too expensive for their tastes!
They found a company called the Merchant Advisors Company that has a website that helps them to line up their loans, and set up inexpensive merchant accounts for processing credit cards, too! They even have a link to a company that will help them incorporate if that is what they decide to do! I think that they should become a “S” Corporation, or an LLC, but they haven’t decided which is best for them yet. They told me that they are going to seek some advice from the Merchant Advisors Company people on which type of corporation will be best for them.
I’ve taken a lot of college classes in Business, too, and I told them that I think that “C” Corporations are a rip-off because they get hit with double-taxation, and that a smaller structure would benefit them financially the most. But you know how brothers are; they can’t ever take the advice of their sisters! So they will contact that Merchant Advisors Company associate and see what they have to say about it. I’ll be interested to hear for myself what they say – it would be a feather in my cap if they agree with me!