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larbin
06-21-2006, 10:50 PM
I have all of the money that i need in savings and home equity to startup my business. I plan on forming an LLC with my partner. Is there any way once the business takes off to pay myself back and have the monetary liability on the business only and not my personal assets?

It sounds like most banks will make you have a personal guarantee anyway so its probably not worth it.

Just curious how others handle this, especially when most of the startup costs are for capital.

BusinessMan
06-22-2006, 01:34 AM
When we set our business up, we did it by way of a loan from us personally... to the business. When the business started earning money, we then paid ourselves back.

I suspect this is a perfectly normal path to take.

bizdev
06-24-2006, 08:20 AM
It will be extremely difficult to fully protect your personal assets (in the US), even if you set up as a corporation or LLC. That personal guarantee is now being required at every turn.

One of my businesses (retail) was set up as an S corp, but because I was required to sign a personal guarantee by everyone (landlord, bank, credit card co's, vendors) I was still left wide open and sure enough, I got sued.

So, when deciding on a business structure just realize you are never really protected.

assaf
06-27-2006, 01:32 PM
As Business Man said, If the money you invest in your business will be defined as "Owner loan" (Debt) and not as "Equity" then your business could pay you back when possible.

You can learn more in Business Financing resources article.

themusicchamber
02-17-2014, 07:56 AM
The general process is that you pay back yourself once you started making money from the business. You can consider as your personal investment and take profit for lifetime.

delusional
02-18-2014, 11:09 AM
When we set our business up, we did it by way of a loan from us personally... to the business. When the business started earning money, we then paid ourselves back.

I suspect this is a perfectly normal path to take.

It is. Although, every profit the company makes, can be seen as a payback for your investments. Although it can be tax deductible if you manage the money as a loan to your company. If you really want to know what's best, try to go to a small business administrations office.

pdbsales
04-14-2014, 04:00 PM
In the beginning, no; it's not worth it. However, once you are a few years in, fewer places will require you to sign away your life. Our latest lease was signed as a corporation only, without needing to personally guarantee the lease.

MahaKarthi
04-02-2015, 04:36 AM
Pretty normal thing to do. Why dont you consult someone with a finance background to understand which is the better route?

TheDogLine
12-20-2016, 09:30 PM
I agree that you should go to the bank and ask for a loan. This way, the government knows where you got your money from.

sparo1
12-03-2018, 07:06 AM
I have the majority of the cash that I require in investment funds and home value to startup my business. I plan on framing a LLC with my accomplice. Is there any way once the business takes off to pay myself back and have the money related obligation on the business just and not my own benefits?

It sounds like most banks will influence you to have an individual assurance at any rate so its presumably not justified, despite any potential benefits.

Simply inquisitive how others handle this, particularly when the vast majority of the startup costs are for capital.

Millieholladay
04-24-2019, 08:49 AM
I have all of the money that i need in savings and home equity to startup my business. I plan on forming an LLC with my partner. Is there any way once the business takes off to pay myself back and have the monetary liability on the business only and not my personal assets?

It sounds like most banks will make you have a personal guarantee anyway so its probably not worth it.

Just curious how others handle this, especially when most of the startup costs are for capital.

My company specializes in Unsecured working capital for both existing businesses and start-ups. What most of our clients will do is utilize start-up capital to cover the initial cost and/or pay themselves back. With our lending, the funds are Unsecured, meaning that you are not required to put up assets such as real estate. If for some reason a client defaults, our lending group does not have the right to go after the business or personal assets. Many clients like our Unsecured capital as it can also serve as a tax write off.

Give me a call if you are interested.

Treavor 406-580-2595
tnefunding.com

silklogisticspk
05-15-2020, 03:59 AM
I have all of the money that i need in savings and home equity to startup my business. I plan on forming an LLC with my partner. Is there any way once the business takes off to pay myself back and have the monetary liability on the business only and not my personal assets?

It sounds like most banks will make you have a personal guarantee anyway so its probably not worth it.

Just curious how others handle this, especially when most of the startup costs are for capital.


I Like it the suggestion that you go for loan to bank

Packers & Movers Rawalpindi (https://www.silklogistics.com.pk/)

speeduser
11-19-2020, 09:12 AM
The startup cost is going to be big. However, the return is going to be good. - Phillip Elden (https://twitter.com/phillip_elden)

AarushiAashi
06-08-2021, 03:11 AM
Pre-opening startup costs incorporate a field-tested strategy, research costs, and yourself can help shield your own resources from any liabilities that may emerge.