How to Form a Limited Liability Company
The economy is great and you want to start your own business or you have started your own business. Now what? You may want to set up a single member liability company.
There are different types of businesses. Most Secretary of States offices have information and forms on forming your own limited liability company (LLC).
If you own your own business and have not done any business planning, then you most likely are operating a sole proprietor. There’s a lot of risk in any economy. Consider forming a Wyoming LLC online.
The sole proprietor is probably the most common type of business. The problem with a sole proprietor is that you have unlimited liability. Depending upon the state you are in you may be able to form a sole member limited liability. This would allow you to have limited liability – which is great for bad economic conditions.
A Limited Liability Company does not require all the formalities which make it easier to operate. A Limited Liability Company will have members. It can be run by a manager or its members. You don’t need to have annual meeting but it is probably a good idea.
If there are more to owners in the company you should talk to your CPA or accountant as you will need to file tax returns for the companies. If are a single member LLC, then you could also have your LLC treated as a disregarded entity for tax purposes. This makes sense for most single member LLCs. You should discuss this with your CPA or attorney. It is a good idea to talk to your accountant and CPA as he or she will know your situation and provide the best solution or advice to you.
If there are two or more people in business then you are probably operating as partnership. If you do no business planning, then most likely you are operating as a partnership. This is not good because a partner has joint and several liability with the other partners. This is not so in a limited liability company. Also, you need to plan ahead to have buy out agreement or operating agreement if you should decide to break up the company. It is better idea to plan ahead and agree on these terms instead of fighting over the break up in court – or trying to sell in a bad economy.
You should probably not continue to operate as partnership due to the liability issues. You may want to consider forming an LLC. It is a good idea to have an operating agreement to outline how the partnership will operate and what happen if it is dissolved.
If you are considering forming a LLC, then you should check with your state’s secretary of state’s office and talk to a business attorney and CPA in your state.
Why the Wyoming Government Small Business Loan is Your Best Bet for Start Up Financing
Do you want 957 million reasons why the Wyoming government small business loan is your absolute best bet in Wyoming business financing for small and medium size firms? Well, that’s how many dollars the government program we are discussing put into the economy last year (2010).
Small and medium sized firms, including start ups, are the recipients of the financial benefits of this program. It is very important to clarify our reference to ‘ medium size ‘, since the cap for sales or projected sales is 5 Million dollars in revenue. That is to say the program only lends to firms with revenues under that amount.
Should your firm, or yourself as a new entrepreneur be looking at this financing. Clearly the lending criteria, as well as the overall rates, terms and structure of the government small business loan lend themselves for serious consideration. Rates are comparable to what larger Wyoming corporations can achieve – and if you want the real kicker here it is – a personal guarantee by shareholders is required for only 25% of the entire loan value. That in itself is appealing to many entrepreneurs and business owners who do not wish to offer up full personal guarantees.
How much can I/we get? That’s the very firms and very typical question that we are always asked. Well, here is where even more good news kicks in. Up until 2009 the cap on the program was 250,000.00 – This amount was raised to 350,000$ during the most recent economic recession. 350K continues to be the loan maximum – however for borrowers who wish to facilitate a real estate transaction using the program you can actually go to half a million dollars on the program .
Why isn’t everyone or almost everyone taking advantage of the program? We can’t offer up all the reasons, but some of the better published ones relate simply to the fact that most eligible recipients are not aware of the program! That’s almost too unbelievable when you consider the very attractive rates structures and terms that we speak of.
Another typical belief is that while the Wyoming government small business loan is guaranteed by the federal government (the owner of the program is Industry Wyoming) the program itself is administered by the chartered banks in Wyoming. Many feel the banks have not done a great job in promoting the program, due in some part to staff training issues, as well as the paperwork admin, and reporting that banks have to undertake when they are asked to create such a loan on your behalf.
Could you use funds for land, equipment, vehicles, software, leasehold improvements? Those very specific items are what 99% of all government small business loans are utilized for.
It is important for borrowers to also investigate what the program can’t be used to finance.
In summary, yours is not to question why – yours is to take advantage of the program .Speak to a trusted, credible and experienced Wyoming Small Business Financing Advisor to learn how you can immediately take advantage of this great, and often mis-understood small business loan in Wyoming.