LLC or Sole-Proprietor

[Alexander Forrester]

I have a few structural questions regarding my business. I am undecided as to whether I should register as an LLC or keep it as a sole-proprietor. I know some benefits such as my personal assets are protected in an LLC, but I've also heard that it is harder to get a bank loan. If anyone could help me understand both the advantages and disadvantages of both, and also give me your opinion as to which one is better for a buy and hold business that would be great. I would be registering in Indiana if that makes a difference. Thank you.

[Sabrina Kane]

For real estate go LLC absolutely.

If your looking to get traditional loans in the future you need to get the llc and start building business credit. Which means you need to get a Duns and Brad Number. 

This duns number is like your business (social security number )

it is not to be used in place of a social on applications never.

when you apply for business credit ,business credit applications 90%will have a space for asking for your Duns Number.

A duns number is the first step for 100% separating your personal from your business credit. If you establish a duns number ,you will never have to personal guarantee a loan.

google around the terms : buidling business credit with a duns numbers

Tip duns numbers have scores as well based on how soon you pay your loans back and vendors back. Once you get a duns number go to quill.com and order about $25 bucks worth of stuff and click the option in checkout as invoice me pay later. They will give you credit automatically. Once you order pay it pack within 20 days . Then order again this time increase to $ 75 order and so and so on. This will create activity in your business profile. 

Then google Net 30 Vendors. Order from other similar companies like quill.com.  you need 4 companies to order from before you will have a paydex score. Aka duns score.

Sign up for the FREE duns credit signals account. The free version is fine.you can watch your score and your business credit as it grows.

Once you have a paydex score apply for business gas cards. Never with your social. Use the duns number where it ask for this number. Never use a duns number in place of a social that's illegal.

once you have gas cards pay those back within 20 days.

then apply for a small line like 2500 at the bank. Pay it back then borrow 5000. Pay it back then borrow 8k then 10k 

by this time you'll have creditors throwing credit at you

 The whole process should take about 9 months to 12.