Credit Line

Hi, welcome to the site. Your personal credit has nothing to do with your business lines of credit. Once you open a LLC or an S Corp, you will be offered business lines of credit. You will be operating under the business name, not your name, so a business line of credit is totally different. We have llc's and s corps to protect, so the business would be responsible if something were to happen, and your name is safe. You will be the ceo of your business.

Jeremy

Hello Jeremy
Good info on Business LOC, I have had a LLC sole proprietor for some time and would like to get info on how to get lines of credit for your Business. This would solve the need for going to Banks that seemed to give you the round around. You could fund your deal, flip it and pay it back and move on to the next deal. This would be a great way to do Business. More info please.

Mike

Glad to see you guys got your LLC and are now helping others understand how it works... AWESOME!!! ;D

To add more... The business lines of credit could also be used to help you pay off your personal credit debt.

You can also dispute ANY debts and bring your credit score up within 90 days by just doing that!

Hi Mike
I started my 1st company in 1979, then another S Corp in 1981, it was a home heating oil company & we also had a gas station. We did several millions of dollars with the same bank over the years; this is the best place to set up your 1st business LOC, they know how much money is going thru the business checking acount, frequency of bill paying & no "bad checks". They can start small & increase over time, & base the line of credit on how much business you're doing. But, please keep in mind that despite in corp. protecting your personal liability, some banks & vendors insist that the shareholders(CEO, Pres, VP, Sec, or Treasure) sign a " personal guarantee ", so in the event the corp. goes under, you are still liable. This was an industry standard in the oil business, refineries like Sun, Citgo, Hess & Coastal Oil Companies made everyone do this, despite doing business with them for over 23 yrs & spending over 20 to 30 million.

Gary

Thanks for the info, you are right. I hear alot about getting a business loc but when you start asking around seems like they all want the same thing your personal guarantee.
Mike

This is great info

So best off getting LLC right away? I have been waiting just to see if I do a few (3), then I was going to consider getting one. If I do get one and then I can establish an actual business or entity and start recording all my business expenses; travel/fuel, marketing expenses, etc...? I think this is how it works, but it just seems too easy to start out this way. Any suggestions?

There are alot of banks that ask for a PG 680+ scores. Especially when its new. There are a few banks that dont require a PG. But you will have to build the LLC or Corp Credit paydex scores by applying for vendor credit and establishing a file with dnb

And to receive Big lines quick you need a Business adress and phone

Not a home adress or phone.

Also you dont need a paydex to get funding some banks will do no doc funding but you will need a PG 680 some will require 700 credit scores....You can get 30k-200k you will need a aged corp...

Once you get this funding you can use the money for whatever reason you want...I use it for realestate

Tell me more info on what you have to offer.

What is the difference between LLC and S Corp? Which one is better for a real estate investment business? Please help.
Thanks

Baria

Hi Family,
I'm trying to form LLC but my question is that if i have the LLC in Washington, DC; does that mean that i can only buy properties in Washington DC? I need help before i form my application with www.legalzoom.com. I appreciate any help.

Baria

Hi Family,
I'm trying to form LLC but my question is that if i have the LLC in Washington, DC; is that mean that i can only buy properties in Washington DC? I need help before i form my application with www.legalzoom.com. I appreciate any help.

Baria

I'm getting LLC with legalzoom.com but i was told if i buy want to invest in a different state i would need a different LLC from the other state. Is this correct? What kind of LLC do i need to use in all States? I live in Washington DC but i'm making an offer in Mayland. Please help!
Thanks

Baria

Scorp is better more advantages for taxes

Thanks, Jeremy. I found that very helpful.

You know I have the same question.

What is S corporation anyways?

S-corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.

To qualify for S corporation status, the corporation must meet the following requirements:

Be a domestic corporation
Have only allowable shareholders
including individuals, certain trust, and estates and
may not include partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have one class of stock
Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.

Hope that helps.

According to legal zoom, its a smaller fee for your LLC to operate in other states
and still get the same benefits and protection that you have in your initial filing state. If you contact/google them they have a customer service line that will answer your questions. You can still do business but you should be registered/protected just in case.

If you want to operate in other state you would apply for a foreing filing certificate

But i rather get a corp and use that to get build credit and get funding and then for every property that you buy use an LLC...And i will use the corp like n umbrella company and under that My LLC... Ive heard shady things happen to other investor for not protecting them self...

Rick is right i had something like that happen to me...

Someone slip and fell on my proprety and decided to sue trying to go after all my personal assest but could because i had all my properties under different LLC and i use my corp as an unbrella

So Rick I guess it'd be smart to apply for a corp in conjunction with the LLC?

is bad, or you think its bad email me
skultkaman
at
gmail
dot
com
I can help. as long as your bankruptcy / foreclosure is longer than 2 yrs...
alot of the students here are emailing me. dont delay...
ps..
I will not reply in here

alaskan success,inc is here to help you all...

Yes rick did give out a good idea...You if you dont want to be extra careful because as more properties you acquire the more responsibility you have...And the more people try to go after you