How do I combine businesses to get a business loan

by kobaltic1. Posted on Sep 11, 2020    1    5


I started a 'S' corp in 2012 it never did anything and never made any money. In June 2019 I started a 'C' corp. That company has been doing really well and has over $100k revenue. I am trying to expand my business by getting a loan.

When I go for a loan everyone says I need to be in business at least 2 years. One of the bankers told me I could have my 'S' corp buy my 'C' corp and then I would show that I have been in business since 2012. Is this correct? What do I need to do so I can show the time from my 'S' but the money from my 'C'? Thanks in advance.


Comments

Zazenp 1

Your s Corp can have a majority share of the c corp.

atx78701 1

what size loan are you looking to get? Under 100k you can typically just get a personal line of credit on the basis of your personal balance sheet.

  kobaltic1 1

I am going after $300K to $500K

SirAndyO 1

Get the loan for your 2012 firm and write your business plan to show cashflow from 2019 firm to repay the loan. Then talk to your accountant to straigjten out the taxes.

  kobaltic1 1

Thanks