Blog
The Series LLC
July 22, 2008
The Series LLC is supposedly designed so that by setting up (and paying the fees on) one asset-protected LLC you can protect a number of properties in separate series within the one LLC. A graphic example follows:
1. ABC, LLC (a Series LLC)
a. Series One (duplex) b. Series Two (fourplex)
The supposed benefit is that if there is a claim against the duplex in Series One a creditor could not reach the fourplex in Series Two. It is in a separate asset-protected series the promoters will claim, and therefore can't be reached.
There are several problems with the series LLC. The first is, conceptually it doesn't make sense. If you form one entity and it is sued, all of the assets within that entity are exposed - whether they are in a separate series (or buckets or whatever else the promoters use to describe them) or not. Significantly, there is not one court case extending asset protection to assets held in a separate series. I personally do not want to put my assets into an entity and hope for the best in a future court ruling. By using separate LLCs we have the certainty that assets in a remote LLC will not
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Credit Investors: Partnering For Personal Credit
July 18, 2008
By The XBanker
Like it or not, your personal credit will open or shut doors for financing your business. If you have terrible personal credit, we can help you obtain trade credit, credit cards, equipment leasing and potentially some bank financing. However, we can obtain much more financing, if a business owner has great credit (preferably 700+ FICO). This has important consequences for you, if you are trying to finance a business and have poor personal credit. You need to consider bringing on a credit investor or partner that can help you obtain bank financing for your business.
Last week, I asked an entrepreneur about his loan readiness and he told me his credit was in the toilet. So I turned to his partner, "My credit is even worse," was his reply. I guess when it came to selecting partners, this criteria slipped their minds - don't make the same mistake. Unless a partner brings irreplaceable technical expertise, they can always be replaced with someone that brings skills and credit to the table.
If you're an entrepreneur with poor personal credit, you should consider bringing on a credit investor or partner. Ideally, you'll need someone
Read More »Two More X-Men Join The Team
July 16, 2008
By The XBanker
From the day we started the XBanker we set out to do two things: bring together world class expertise and best in breed solutions for helping entrepreneurs access capital for their business. We've been busy making key deals to enhance our offering and to attract great talent. That being said, it is my pleasure to announce that Trent & Chad Lee are joining the XBanker initiative - a critical portfolio asset for Shared Success.
This dynamic duo built Corporate Credit Concepts from the ground up, establishing themselves as the premier provider of cash credit solutions for entrepreneurs. We have formed a strategic alliance to integrate our consulting solutions into a combined offering: Business Credit Success. Through this partnership, we will be able to help our clients obtain thousands of dollars in cash credit without personal guarantees - regardless of the business owner's personal credit.
Stay tuned as this relationship develops and other key acquisitions are made. In the meantime, enjoy the great content these two experts will
Want your business to survive and thrive?
July 10, 2008
You may have heard the statistics that half of small businesses fail in the first year. The Small Business Administration says it's not quite that bleak. They report that two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years. (Still that's 54% that don't make it four years.) These results were similar for different industries.
Major factors in a firm’s remaining open include an ample supply of capital, being large enough to have employees, the owner’s education level, and the owner's reason for starting the firm in the first place, such as freedom for family life or wanting to be one’s own boss.
Other studies have pointed to the following causes of failure as...
- Lack of experience
- Insufficient capital
- Poor credit arrangements
- Personal use of business funds
- Unexpected growth
If you want to be successful, follow those who have been successful. Business credit is key to that success!
Read More »Do You Trust Your Banker?
July 3, 2008
One benefit of being a bit of a packrat is that every once in a while you find a gem hidden in your junk. While digging through some files recently, for example, I came across a brochure from a law firm I had been saving for...well, let's just say a while.
Titled, Words to the Wise: 10 Rules to Remember When Borrowing From a Bank by Cappello and McCann - now Capello and Noel -- it describes precautions smart borrowers should take when getting loans. We'll help warn you when we can.
I’ve asked their permission to share some of these tips and over the next few weeks I’ll do that. I’ll start by excerpting from Tip #10 – one of the most important:
Don’t ever forget that your banker’s allegiance is to his bank and not to you.
“Many people like to develop strong personal relationships with the people they do business with. They may foster close friendships with a loan officer or banker, especially in a small town where the branch manager knows everyone and there’s only one bank in town.
No matter who close you and your banker become, how
Read More »Updated and Revised "Own Your Own Corporation" Just Released
June 30, 2008
I am pleased to let you know that the new and updated version of my book "Own Your Own Corporation" has just been released. It is available at Barnes & Noble, Borders and your favorite bookstore, online at amazon.com as well as through Corporate Direct and Success DNA.
I would like to thank you, as a reader of the first version, for making the revised edition even better. Your comments and questions have allowed me to better clarify and define the issues affecting entrepreneurs and investors.
So what is new in the revised addition? Well, we have new chapters and discussions on the following important topics:
- Avoiding Corporate and Tax Scams
- Building Business Credit
- Nevada's new asset protection laws
- Crossing State Line strategies
- Professional Corporations
- Business Tax Deductions
- Wyoming Corporate Advantages
- Series LLCs and why you should avoid them
In the coming weeks I will be writing about certain key elements of the new material. But if you want the straight scoop right now in 240 wealth and nugget packed pages you really should rush out today and buy "Own Your Own Corporation." We're shameless, I know, but I do believe that you will benefit from this book.
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