December 17, 2008
Will Incorporation help my chances in getting an SBA loan?
Can you answer Sub-Zero's question about Incorporation?:
I've already prepared and SBA loan package and have good credit, and I just wondering if incorporation will be a difference maker. The loan is only for $70,000 start up for Commercial Cleaning in witch I have over six years of experience. I don't want to incorprate and not recieve the loan and have the costs of business taxes and etc. Thanks for any input.
Delaware LLC
I've already prepared and SBA loan package and have good credit, and I just wondering if incorporation will be a difference maker. The loan is only for $70,000 start up for Commercial Cleaning in witch I have over six years of experience. I don't want to incorprate and not recieve the loan and have the costs of business taxes and etc. Thanks for any input.
Delaware LLC
Filed under More Incorporation Answers by admin
Comments on Will Incorporation help my chances in getting an SBA loan? »
You can incorporate as an "S" corporation which gives pass through taxation (income and losses are realized by owners of the company - not double taxed). Being incorporated gives a more professional appearance to the SBA but it's not necessary. You should consider it as a strategic move to create a seperate legal entity (the corporation) to protect yourself.