In early 2007, at age 15, I started an LLC and began offering internet services to a multitude of clients around the world. Over the past two and one half years I have learned a lot about how to run a business and more importantly, what not to do when running a business. My LLC began turning a profit approximately three months after offering my services to the public and it has been profitable ever since then.
The problem is that I have hit a wall. In order to expand my business I need to hire a professional to design a new website and a programmer to develop some custom code. Once those things are done my business will be much more appealing to potential customers and just as important, it will appear and function in a professional manner.
Ideally I would like to setup a corporation funded with a small business loan. This new corporation would essentially be the 2.0 version of my LLC and the loan would be used to build it into a successful, free standing entity. Some time after the corporation offers services to the public, I would somehow arrange for it to swallow my LLC and move the LLC's customers to the new architecture of the corporation. After some rough estimations I believe that building this corporation from the ground up to be much more functional and profitable than the LLC would require approximately $25,000 in investment before it could support itself. Please suggest how I should go about finding funding.
Thanks for the input. I have found a local SBA microloan program and have requested additional information from them. I have also contacted a peer-to-peer lending site to see if they are right for my needs. To the person who brought up the age issue, I was 15 when I founded my LLC in EARLY 2007, but due to my birthday falling towards the middle of the year, I am now 18 years old and able to enter into a contract.
In regards to why I would choose a corporation over an LLC, here is my reasoning: I need to operate my company in a way that is completely separate from my personal finances. My business needs to have banking and credit accounts in it's own name and hold it's own assets. I think that if I form a corporation I will pay myself a flat salary each month and allow the business to build a sizable cash reserve for future expansion and unexpected expenses. Please let me know your thoughts on this matter.
First things first - if you were 15 two years ago - you are only 17 now. You have to be 18 to contract (enter into a contract).
There are many great web designers out there - I personally recommend http://www.vanseodesign.com/ - but just my opinion.
Not sure why a corp would offer you anything more than a LLC does - unless you want to have more reporting requirements as well as payroll headaches.
If you are of age - Micro-loans are a good source and so is peer-to-peer lending sites like Lending Club and Prosper.
You might even think about asking friends and family to pitch in - if they saw what you have already accomplished - they may be the best source to back you.
Message Edited by ChristineL on 11-03-2009 10:06 AM
OregonJosh -
It sounds like you've had some impressive business experience at such a young age. Judging by your required funds, the Small Business Administration's Microloan Program may be a fitting option. Its goal is to increase the availability of loans to small business borrowers by loaning small amounts of capital - up to $35,000. Recently, additional stimulus funds were awarded to the program. Check out the Small Business Cents blog A Quick Guide to Microloans for more information.
I Need Money - Where Do I Get it provides additional financing opportunities and advice.
Thanks for the input. I have found a local SBA microloan program and have requested additional information from them. I have also contacted a peer-to-peer lending site to see if they are right for my needs. To the person who brought up the age issue, I was 15 when I founded my LLC in EARLY 2007, but due to my birthday falling towards the middle of the year, I am now 18 years old and able to enter into a contract.
In regards to why I would choose a corporation over an LLC, here is my reasoning: I need to operate my company in a way that is completely separate from my personal finances. My business needs to have banking and credit accounts in it's own name and hold it's own assets. I think that if I form a corporation I will pay myself a flat salary each month and allow the business to build a sizable cash reserve for future expansion and unexpected expenses. Please let me know your thoughts on this matter.
First things first - if you were 15 two years ago - you are only 17 now. You have to be 18 to contract (enter into a contract).
There are many great web designers out there - I personally recommend http://www.vanseodesign.com/ - but just my opinion.
Not sure why a corp would offer you anything more than a LLC does - unless you want to have more reporting requirements as well as payroll headaches.
If you are of age - Micro-loans are a good source and so is peer-to-peer lending sites like Lending Club and Prosper.
You might even think about asking friends and family to pitch in - if they saw what you have already accomplished - they may be the best source to back you.
Message Edited by ChristineL on 11-03-2009 10:06 AM
OregonJosh -
It sounds like you've had some impressive business experience at such a young age. Judging by your required funds, the Small Business Administration's Microloan Program may be a fitting option. Its goal is to increase the availability of loans to small business borrowers by loaning small amounts of capital - up to $35,000. Recently, additional stimulus funds were awarded to the program. Check out the Small Business Cents blog A Quick Guide to Microloans for more information.
I Need Money - Where Do I Get it provides additional financing opportunities and advice.
My business is an LLC and has been for about 10 years. I have separate bank and credit accounts in the business name. As a previous poster mentioned, I am not sure why you feel the need to become a corporation at this time. LLCs can have employees and enjoy the same protections as a corporation as long as you keep separate finanial records and accounts.
My business is an LLC and has been for about 10 years. I have separate bank and credit accounts in the business name. As a previous poster mentioned, I am not sure why you feel the need to become a corporation at this time. LLCs can have employees and enjoy the same protections as a corporation as long as you keep separate finanial records and accounts.
OregonJosh | Performer | 3/23/2010 - 11:52 pm
phanio | Contributor | 3/23/2010 - 11:52 pm
JamieD | Former Moderator | 3/23/2010 - 11:52 pm
OregonJosh | Performer | 11/3/2009 - 8:29 pm
phanio | Contributor | 11/2/2009 - 7:35 pm
JamieD | Former Moderator | 11/2/2009 - 10:09 am
BizResearcher | Window Shopper | 11/4/2009 - 1:05 pm
BizResearcher | Window Shopper | 3/23/2010 - 11:52 pm
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