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Author: Knoxymama Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14985  
Subject: Re: Starting a New Business Date: 1/12/2005 4:45 AM
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"We'll need money to get things started, unless we want to wait 8-10 years and save up the $. By then, we might not be able to do it. My thought was that if my sister and I form a company, and the company borrows the money, then if the business goes belly up, my family would be protected. I'm sure it's more complicated than this, but I thought (with the help of a lawyer of course) that I could set things up this way. "

Even in working with the SBA, you will need to personally guarantee any loans to the business.

I do suggest you call the SBA for some mentoring before you incorporate or move forward. They will talk to you about your business plans, marketing plans, and hopefully ask some relatively hard questions that will move you in the right direction.

One issue I would bring up - would it be more advantageous for you to own 51% of the corporation as a veteran? Or is it advantageous for your sister to own 51% so you can be classified as a woman owned business? There are some GREAT advantages to this - please be sure to discuss this with the SBA.

I also suggest finding a local SCORE contact in your area. SCORE is a group of folks (I believe they may also be connected to the SBA) who are retired, but offer free business consulting to start up companies.

Finally, I highly suggest reading the "E-Myth" by Michael Gerber before starting the business. It's an excellent book - I wish I would have read it before starting my business. I would have done SEVERAL things differently.

Good luck to you!
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