Properly Structure Your Business for Funding · LetsGetFunded Starter (Free)

Properly Structure Your Business for Funding

You’ll hear many people talk about "properly" structuring your LLC. But what does that mean.

In my experience it means, you want your business to appear larger than it may actually be. Making your business look the way lenders want it to look like. You want to avoid business names that are high risk (trucking & real estate) and SIC Codes (business industries considered high risk by lenders). You want to have accurate and congruent information on the Secretary of State website, business bureaus, online directories, and all credit applications.

How Do I Do This?

Form and file your LLC with your states Secretary of State or hire someone to do it. The Secretary of State website is where lenders and business bureaus check first to verify you have a business in good standing. The business address listed (not the Resident Agent address) is the address you need to use on all credit applications.

Get your Tax ID (EIN #) from the IRS.

Name your business in a lender safe industry (like consulting, marketing, or logistics NOT trucking, real estate, commodities).

Have a ligament business address. (No PO box, no UPS store)

Have a local business phone number (not your cell number). The area code should match the entity business address located on the Secretary of State’s website.

Have a business website (complete with the address and number listed above).

List your business, phone number, and website information with online directories. You want to be easily found in an online search.

Establish personal relationships with multiple banks (open business checking accounts -depository accounts). The more banks the better. Start with two or three. Never have all your financial eggs in one account. Target these banks you have relationships with for business credit cards and unsecured lines of credit.

Have your Personal credit clean and 690+ FICO minimum on all three bureaus. The higher your score and lower your current credit utilization the better. No major derogatory marks. Then you will be primed for business funding.

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