Okay folks! I have another issue! Now that our firm is being formed, we will need financing. This is the situation : My credit is very good except for a few inquiries and in another month or so, they effect of the inquiries will have lessen. The other attorney has so-so credit but we are working on cleaning that up. It's just old stuff htat needs to be cleaned up. The last attorney has serious credit issues and we're working on it but hers may take a little longer to clean up. Where should we start looking for financing? Who is the easiest to get and is the most flexible regarding credit lines. We were not looking for a huge amount but a reasonable amount will do anywhere between 10K to 50K. Also who has the best business credit cards ? Any suggestions is much welcomed Thanks!
I did some research and found Advanta business creidt card, are the easy to get and which CRA do they normally pull.
Cypri, Because you have been helpful to me I wish I could point you in the right direction. I can't because I have no experience with business loans. I hope someone can help. Cypri I think you are going to be a great attorney.
To begin with, you need to tighten up your business plan. 10K to 50K is quite a spread. How are you planning on structuring the partnership? A formal partnership or are the 3 of youjust planning on splitting office expenses as you get started? Next, how do you plan to generate revenue as you get started? Many young lawyers start by doing court appointed criminal defense work to try and get a revenue stream started. Above all, decide on a definite figure that is realistic. Don't pproach anyone with a 40K spread. Before you approach anyone about financimg your office, you need to be able to answer questions like these with some degree of specificity. Also, I'd give a lot of thought to your potential partners. It is never a good idea to get involved with people who have credit or fiinancial problems. In an undercapitalized concern or, a startup situation, those sort of problems have a way of becoming everyones problems.
Thanks for the comment Killer! Keepmine: thank you soo much for the advice. We are planning to handle the court appointed family law cases, one of my former professors is helping me get that started. We also work on immigration cases and business law. I think 10k is the most we can realistically shoot for right now. We have about 5k in capital amongst ourselves. I won't be a shareholder until I get sworn in the next few months. We are forming a L.L.C. Credit issues for my partners are not a real big deal and since this is a field that I will focus on, I would hope that I am capable enough to help them with their credit But I will think about what you said about the credit situation. Thanks again
You may want to try having these guys contact you. Although it mainly states mortgages, they can get you basically any type of loan. Yes, I use them. Just fill out the contact form (no personal info needed right now), and they'll get in touch with you asap. It doesn't cost anything just to find out more info. http://www.loansearching.com/
Cypri, I've just started a LLC myself and it is probably the best way to go for you guys. Each of you get (generate) a 10-K form during tax time, so it's almost like a sole proprietorship. All tax responsibilities are borne on the individuals, not the corporation. My partners (whom I used to manage all have better credit than mine, but the LLC advantage keeps all those issues from becoming BIG issues! The only question that I have is are you going to have a receptionist, etc. Then you are an Employer and have to pay payroll taxes, withholding, etc. As far as financing, you may have to go "solo" and get the credit yourself. One of the things that we did was to have each individual set up a "sole proprietorship" under the LLC, so that we can pick up outside work that doesn't fit under the "corporate" arm. This also allows us to go get credit either under the LLC or as an individual (if needed) -- something to think about. I'm not sure what area you are in, but you should be able to find a decent location with that 5k, as well as cover most other expenses. Most office building are strapped for tenants, so their may be creative deals to be had. A friend of mine got a decent sized office with 6 months free and then like $1-$2 per sqare foot. My advice: Make sure you know your partners well (and their committment to the success of the businss) before you get into any financial dealings! Good luck and keep us informed... I'm in a totally different field (telecommunications), so this is 100% absolutely....
i live in sc and advanta pulled equifax. I applied on the 18 with a 650 score. I was told I would receive a response by 10 business days. From previous post I think your score is a lot higher than mine. I called the 1800# and they didn't know the requirements for a new card.
Hurricane makes a good point on the employee. Can you use a temp as a recptionist/secretary and farm out work to a legal secretary as needed?
Thanks guys for the invaluable advice and info. Hurricane: that is a real good move about the SP under a LLC. I learn something new everyday. As to employees, we will not have any right now. We are on a bare bones budget for now. I would like to get the credit issues resolved as soon as possible, how do you manage to keep the problem at a minimum. What have you applied for ? Which companies are most flexible and small business friendly? Thanks again !
The "BENEFIT" of a TEMP may out-way the cost...he/she may accomplish more in one or two days a week than all of you can together, all week... F.Y.I. they work for the "TEMP" agency, not you (no benefits).
Law students might want "EXTRA" credit for school..."WORK~STUDY" Not sure if they have to be paid, or can be paid...
I really use some help here guys on this issue. Feedback soo far has been great! I would like to know the best companies to deal with and hear about others experience in setting up a company and getting financing. Thanks !
Cypri, Most law students want to work, just to have the experience. Maybe you can get a first year law student to "volunteer" for a while. Temps can be expensive. If you are on a bare bones budget, maybe a volunteer would be more practical. Just my 2 cents. I really don't have any experience with starting a business, but one of my good friends is running her own temp agency, and they are alot of $$$$. Good luck!
This is what I found today: 1. Can get Tax id over the phone 2. Can get Duns Number over the phone but there is a $229 one time fee to sign up for their credit track service, where they generate a credit report for you as long as you have between 2 to 5 vendors, who can vouch for your payment history. 3. In order to get a p.o. box for the business, you have to get the tax id number and a copy of the state seal to certify the existene of your company. 4. to get a business phone line with bellsouth you must have the tax id. 5. Office Depot does not require PG for its credit card but ask for Db id number and tax id . 6. Amex Does ask for PG but no tax id 7. Advanta ask for PG but no tax id. I am still searchig out bits of info and will keep the board posted with my results.
CypriGirl, Have you thought of calling the local Small Business Association in your area? They probably have lots of ideas for financing for free. The other thing you might try is to nail some grants. I have a friend who does nothing but grant writing - maybe you could get some money for doing some pro bono work. Over the past year, she was able to get $750,000 for her NHA (national housing association) affiliate.
Credit Quest could you send me an email at calanova2000@yahoo.com. I would like to get in touch with your friend about grant writing. In fact, you are the second person today who has mentioned this to me. I am going to inquire about this further but I really don't know much about it and do not know where to start. thanks a bunch
Cyprigirl, I asked her if she would be willing to help you, I will let you know. This is what she does all day long.
