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    7 Replies Latest reply on Jun 6, 2008 10:06 AM by heretohelp

    New LLC seeking funding

    monolith5 Newbie
      Hello I own a new LLC in Oregon and I am seeking funding to purchase tools, machinery and supplies. I am a full-time electrical engineering student (almost done) and I have started a business building loudspeakers for musicians. My plan to move on to amplifiers for musicians but for now I am only doing loudspeaker cabinets. I have been in business for 6 months and I am not yet accepting credit cards. I realize that would open up my options but I have not made it to that point in my business. I am looking to get funding of $15,000 to invest into the business. I have an EIN with the state of Oregon but have not established much credit as a business. I have looked into getting loans from private lenders but unfortunately my personal credit is not that great at this point. I am in a difficult position because of that because I realize I need collateral to back the loan. Does anyone have any ideas or options for me? Thanks so much. Have a good day!
        • Re: New LLC seeking funding
          Bridge Navigator
          I am sure you will be spammed with numerous offer for "free" money so I will leave that subject alone.

          Make sure you establish a "business' checking account.

          For tax purposes, you might want to file a IRS Forms 2553 & 8332 allowing your LLC to be taxed as an "S" corp. The IRS doe snot really recognize LLCs as a taxable entity and will reclassify you unless you make your own elections.

          You can easily and cheaply accpet credit cards by opening up a Paypal account. You can have people pay by e-mail invoice or on your website. You could even have them provide you their credit card info. and you enter into a paypal payment button on your website.

          Talk to a reputable loan broker about assist you in obtaining a SBA backed loan - there are several programs available including "micro" loans that you can get without collateral.

          Reply to every credit card offer you get - you should be able to get $15,000 in credit card lines pretty quickly but be careful.

          Best of Luck!
            • Re: New LLC seeking funding
              monolith5 Newbie
              Hey Bridge, thanks for the reply, I appreciate your insight. My concern with applying for credit cards is whether or not that will reflect on my business credit: denial and such. As well, are there credit cards out there that need all of my personal info to apply? I realize I should do my own research but just thought I would ask being were here. Thanks!
            • Re: New LLC seeking funding
              Lighthouse24 Ranger

              I'd like to add on to the "be careful" caution above -- even though all those new credit cards you apply for will be under your business name, your personal guarantee will be required to get them. If your personal credit was good, that'd be no problem. You said it "is not that great," however, and if the reason is because of past late payments or overdue bills, then submitting a lot of applications for additional credit cards will "set off alarms" that could negatively impact your credit score even further. You might want to add new cards gradually.

              $15K is really in the 4F money range (founder, family, friends, fools). If you're building a good product, you might try doing some networking -- you may be able to find all or part of the funding you need from industry-related people who recognize the potential. For example, I have a friend who built and opened a recording studio just using 4F money just because musicians, club owners, etc. knew him to be a sober, responsible, and technically competent engineer and soundman. He launched a successful business and we made money on our investment.

              Best wishes.
              • Re: New LLC seeking funding
                Loan_4_You Newbie
                Do you know anyone that would co-sign on a loan with you?

                If you know someone with a 700+ credit score, send me an email and I can probobly get you an unsecured line of credit.

                • Re: New LLC seeking funding
                  heretohelp Newbie

                  Please contact me at 781-341-0700. I can definitely discuss with you how you can meet your capital needs.