Experts Business Terms

You and your long time friend have developed a great business idea, obtained financing, hired employees, and are planning to open the doors to your business in two weeks. The business is set up as an LLC using a software program that you purchased at an office supply store. The program is user friendly and prompts you to enter the names and addresses of the owners and a beautifully polished LLC operating agreement is produced.

You purchase the building in which the business is housed using your credit and provide $50,000 of operating capital to the business. You and you friend agree that he will be the full-time manager of the business in lieu of providing capital to the business. Your friend convinces you to place his name on the deed to the building stating that it will be easier for the business to obtain financing with both of you on the deed.

Your business opens and you and your friend miraculously manage to turn a profit within a few months. You are very pleased with the business operations and are excited about the future prospects of the business. Your friend mentions to you that he would like to obtain a line of credit for the purpose of purchasing new equipment, hiring an additional assistant, and sales trips. The one caveat is that your credit will be used to obtain the credit line. You obtain a $100,000 line of credit and you allow your friend to have access to the line of credit.

After a year or so, your friend is interested in taking some business trips to promote the business and convinces you to assist with managing the store. As you have never really been a “numbers” person, your friend does all of the accounting and simply provides you a check at the end of each month representing your portion of the business profits.

Last 5 posts by admin

• Instant Cash Small Business Idea - September 8th, 2010
• Explore Home Business Ideas - September 1st, 2010
• No fax payday Requirement for the Loan - August 31st, 2010
• Generate Higher Business Profits with the Helps of SEO - August 28th, 2010
• Glow Dental to Solve Your Entire Dental Problems - August 26th, 2010

Comments are closed.