i have good credit. i want to purchase a business that is up an running completely financing it. since sba loans are guarenteed i want to take a huge amount of money on a business and have the business itself pay it off. for example if there is a pizza restaurant for sale and the asking price is 75,000, i would take out a loan of 150,000 to buy the business and all the nesessary things i would need to run it. what ever i have left say, 40,000 dollars, i would pocket and let the business pay it off. assuming the business does good i walk away with a nice profit and a good business without investing a dime. since it is corportation if it does bad and goes out of business then my name wont be affected if it goes out of business. and i still walk out with all the money. am i missing something or is it just that easy
2006-11-22 06:35:46 · 4 answers · asked by courisousgeorge 1 in Business & Finance ➔ Small Business
Missing something big. If you take out a loan in the company's name (assuming it's a corporation), then you pocket the difference between the loan and the actual costs, you have just pierced the corporate veil. This is because you have failed to act in the best interest of the corporation. Once that is done, you have opened yourself to all the liability if the company goes under. In addition, usually it's difficult to get a loan for twice the value of a business.
2006-11-22 06:44:54 · answer #1 · answered by Big Super 6 · 0⤊ 0⤋
You will be held personally responsible for the SBA loan whether the business succeeds or fails. The SBA will want to know exactly what you plan to spend the money on. They won't just give you and extra $40K.
2006-11-22 08:36:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
you're actually not being to soft or hormonal, your mothers behavour substitute into impolite. while somebody facilitates you to reside with them you may stick to their abode regulations. you besides mght dont invite different individuals over, it extremely is only incorrect. If she couldnt wait to depart why did she stay with you interior the 1st place? I wouldnt enable her stay with you anymore, if she is coming for a circulate to grant to pay a lodge room for her. the subsequent time she calls you a stay in maid tell her you're an entire time mom and paintings 24 hours an afternoon, 7 days a week. If I ever stay with somebody I continually stick to their regulations, I additionally pitch in with the home extensive-unfold jobs and do what i can to help the guy i'm staying with. i could on no account invite somebody over the two. So no you're actually not being too soft or hormonal. your mom substitute into impolite.
2016-11-26 01:40:37 · answer #3 · answered by ? 3 · 0⤊ 0⤋
You might find some interesting and useful advice in the 'Small Business' articles at http://www.hammocksurvivalguide.com/
2006-11-22 22:14:56 · answer #4 · answered by William K 2 · 0⤊ 0⤋