Businesses in the United States are not limited only to one type of entity. There are several business structures to choose from, including a sole proprietorship, a C corporation, an S corporation, and a limited liability corporation (LLC).
Limited Liability Corporation: A Primer
More and more, LLCs are becoming popular when people erect a business entity. They have several benefits that many business owners find attractive:
- Your personal property is protected.
- They require minimal paperwork to start.
- They carry certain tax advantages.
- They offer a fair degree of flexibility to the owner.
The Need for Financing
Of course, just like any business, there are many situations when an infusion of working capital is needed, whether for growth into new niches, property acquisition, purchase of new equipment, or even debt reduction. Here are a few common forms of financing for LLCs:
Business Line of Credit
In this form of financing, a set amount is set aside by the lender and the LLC can use as little or as much of it as is needed.
Invoice Factoring
An exquisite solution for those businesses that utilize invoices, this form of financing involves the outreach sale of invoices to a financing agent.
SBA Loans
Loans guaranteed by the federal government can be taken out under the guidelines of the Small Business Association.
Non-SBA Term Loans
Often the first idea to be considered, loans are offed by banks, credit unions, and financial agencies.
Of course, there are many other forms of business financing, some of which may be particular to your LLC business model.
Seek Expert Assistance
Dorra Financial Group knows LLCs and can provide needed capital when they need it. They welcome your call. Get the financing you need today.