Don't file an LLC until you do THIS! (Business Credit Loan Mistakes)

All right, so you're super excited about opening up an LLC and I do think you should, but not so fast. Before you get all excited and open up your LLC and go out there and make a whole bunch of money and make the mistakes that'll cost you getting funded, I want to stop that from happening. So hold on, make sure you watch this video to the end. My assistant, she comes. Every employee that comes into my business, the first thing I do, open up an LLC and help them start their own business and the bad part is most of the people who work for me end up very successful as a result of that. But hey, that's just what I do. I'm going to explain all that later, but stop making the same mistakes. I was on a coaching call yesterday and I take all these things for granted and so many, I went back through the applications. We get four to 600 people a day that apply through the portal in the link in the description and many of you guys are getting turned down for reasons that will be obvious when I share what I'm going to share in this video and you're going to go, oh, I, yeah, of course LLC can help you make more money. You get better tax treatment in two years, you're golden. You future-proof your credit. Like I tell people all the time with business credit, like buying cars, I own my cars, I own my houses in business credit and you mitigate that risk that you have as well as asset protection. Not to mention when you build this LLC, you have something to sell later. I've seen LLC sell for a hundred thousand dollars to $5,000 by building them. So you're actually building an asset as well, but I'm going to get to all that a little bit later. I got to just tell you the basic mistakes. This is going to be a short and sweet video. This is to maximize the amount of money that you get so that you get the most possible. If you avoid the mistakes that I'm going to share with you in this video, meaning the difference between getting $5,000 from a lender or 25 to $50,000 plus, I'm going to share with you how to accelerate your path to getting better funding in business. And why did I make this video? Well, people are going to banks, not coming to me, they're going to banks. And the reality is 90% of the business credit applications, they get turned down. If you don't apply the stuff that I'm talking about and you apply with me, we're private credit, private market money. So we're approving loans every single day. We do loans all the time and we're helping people when banks won't. And you know why? It's because business owners don't have a fundable foundation. You got to have a fundable foundation. I'm going to share with you how to create out of thin air, a fundable foundations so that you can get a loan and credit. They don't know how to properly structure their business. Most people, maybe you don't. So in this video, not only am I going to show you how to properly structure the business before you file your LLC, but I'm also going to give you some bonus tips on how to accelerate your ability to get money. I'm going to give you tips on how to file your LLC for free, how to use the necessary documents and how to never get turned down for business credit or funding, because I don't want you to. You're going to want to stick around to the end of this video, trust me, while I jump into it. My name is Andrew Cartwright. I'm here to help you get money, leverage it and invest it. I can relate to where you are. I've been rich to homeless and back again, four different times. Started 32 companies using what I'm going to tell you. And I've been, I've done it in 17 different industries. I bought 17 companies, exited five times. Buying businesses right now with you in Epic 99, where we're buying baby boomer businesses. You need to have a 680 credit score to do that. And there's a link in the description if you want to buy a business with me. And if you're selling a business, make sure you email me. My email is in the description as well. If you need a business loan from private money, because we are approving loans, make sure you hit the link and also get your free stock down there with Webull and Moomoo. It's incredible. It's just free stock. You can track it and make money dividends off that. Just open up an account and they'll give you some free stock. All right. The first mistake people make is one, you got to choose the proper business name. This is where so many businesses make a mistake. If you pick a high risk type category, like for example, gasoline station, entertainment, general contractor, dry cleaner, computer software company, these companies can be perceived as very high risk. So you'll want to pick something that's pretty generic so that you don't get auto blacklisted because right now they have AI tools that basically will scan the names and immediately if you're on that list, they automatically kick you out. Those AI systems, they just automatically trigger and with getting thousands, if not millions of applications, these banks are kicking those out. So they pull those out like weeds. You don't want to be in a high risk industry. You basically want to think of something that is really generic so the AI can't actually pick. Believe it or not, having a very generic name, like imagine Google, what would you attribute Google to be? It's the perfect name, right? Because you have no idea what it is. Pick a name that no one has a clue of what it is when you're opening up an LLC. You can always do what's called doing business as a DBA and you can have any name you want for the commercialization of your company, but your LLC, you're going to definitely want to make sure it's a pretty generic name. A generic name doesn't put you in a high risk category. I wouldn't name the business what you're doing. You can have a division in your company that's the lowest risk, like maybe retail or consulting that has the least amount of risk. Instead of picking something that has high risk, you could have a segment. A lot of times I'll open up a business license and that business license is in a category that's the easiest to get the license and also the least amount of risk. I do lots of things in that business. I don't only do one thing. The second thing you're going to want to do is pick an NAIC code that fits your business. Now, here's the NIC code. I went to the real estate portion of it, but one of the reasons I did that is if you pick a category, like for example, if you're real estate and you go real estate, you can pick a lower risk category of real estate. You might have a real estate office that you own the office and yet you're doing other activities. I always pick the easiest category because I might have a company doing several things and I'll pick the category that has the least resistance when it comes to lending because I don't want to get told no by the bank. So when I'm setting up a company, one, I want to make sure it's pretty generic, the name two, I want to pick a safe NAIC code. This is the code that businesses have. Each business falls under this category and it's how businesses are classified. You can look up the actual NIC codes for your particular industry. You can go to NAICS.com and be able to look for that and look for related businesses, pick something less risky, like a code related to maybe consulting or management. This is critical as well for your business checking account, as well as your Dun & Bradstreet profile. All those things are going to match up and also I'm going to tell you how you can turbo charge that later in the video. The right code to add to that high risk category keeps you from getting thrown out or getting a tiny credit limit, which you want to get higher limits. The third thing that you're going to want to do is set up an office, a virtual office. One of the mistakes people make is they'll go to like a UPS. Now I'm pretty creative about how I do things. If you go to a UPS store and we look them up as bankers, we can see that there's so many businesses there. We know it's a UPS store. So basically we don't necessarily consider that a brick and mortar location, really. So what you're going to want to do, because I've done this so many times, I go out and just simply talk to a friend or somebody that has a business location and they have an office within that location and I say, Hey, do you mind if I give you a few bucks and I can just use this address and a suite number? And then I go ahead and file it that way. That way it doesn't show up on the radar and it looks like I'm in a real location, not a virtual office out of a UPS store or some other place that there's a ton of different businesses in where they're going to say, yeah, he's not really there. Perception is reality. Perception is how you get credit. You want to appear like you're an operating prestigious neighborhood, great company, and you're real. That the banks really see you as a bank. You want to be in a location, maybe in a nicer neighborhood if you can. Business wise, business neighborhood, not your garage, even if you're working out of the garage. Step number four is where you're going to pick your professional email and your phone number. You're going to want to go to GoDaddy. I use Dynadot for my names. I buy them and I also use Bluehost. You can pay $10 and actually get your business name so that you have your business name. You can set up a site and your email addresses. It's one of the things when we get an email or you give us an email or we get email from a banking perspective, it means a big deal. When you commit to your own name, it's like you're really in business. If you're going to do this, you want to be serious. If you buy your business name, you get infinite email addresses that you can have. Infinite. In fact, every person in my company gets their name with the at andrewcartwright.com, etc. We've got contact at andrewcartwright.com, it goes through the general box, and there's infinite emails that we have. You're going to want to avoid using Google because Google, it looks like you're not serious about being in business. I love Google, but when it comes to banking, that's one thing that is something that is one that could hurt you. The next step, you want to get a phone number from RingCentral or Vonage. Get an 800 and a local number. That way you have that perception of being legit. Next, you're going to want to do a landing page for your site. You can go to Google Sites, which is here, and you can pick whatever you want. You can go ahead and edit this, change it to whatever you want. You can type in your name, hello, whatever your name is. You can also go to a site builder called Wix. You're going to want to put up a website. The next thing you're going to want to do is go to Google Maps. This is important. You're going to go right here, and you're going to add your business. This is very important because if they Google you, you'll actually pop up in Google Maps, and then they can go to your website. Your website will be up. All this you can do in less than a couple hours. You'll be good to go, and you'll be rocking. You'll have your email address. You'll have your website. You'll have your phone number. You have all the critical stuff, and then when they Google you, they'll find you. This is important. Perception is reality. Now, you just file your LOC. Next, you're going to want to get a registered agent. This is critical to keep you informed of any important documents that might come to the company. I'll drop a link in the description on how you can register for free with an agent. Second, you're going to want to set up an operating agreement. A lot of times, banks have free operating agreements. You can Google operating agreement as well and just fill out the blank information. It's pretty simple. When you're not really doing anything with the LOC, you can always change and amend that operating agreement at any time. Not legal advice, but you can do that. When everything matches and you filed with the Secretary of State, you're going to go to Dun & Bradstreet. You're going to go ahead and set up your credit profile here and get that all set up. And Accelerator, which is incredible. You can use this to accelerate your path to better funding. This is incredible because with NAV, Prime NAV, and I'll put a link in the description, you can go ahead and start making payments, and they'll report those. You can use that card and actually start building your credit right away. They'll report it. They have credit lines that you can do, plus business checking account. You get that Prime card that every time you pay for something, it literally is putting it reported as a trade line. It's a hack. It's really incredible. This Prime NAV, so make sure I'll put that in the link down below, NAV will turbocharge your credit. The first thing I do with every employee, like I said, is set up an LOC for them. Everyone should have an LOC, in my opinion, to build business credit. You should have a side hustle, something else that you're doing. You also can write off things in your world that you can't do as an employee. You get better tax treatment, in my opinion. And after two years as a lender, you're considered gold. Plus, you future-proof your credit because not only do you have personal credit, but you have business credit. So if your personal credit, like I did, collapses, you still have business credit, which mitigates your risk. And it also gives you some asset protection because anything that you own in that LOC is owned by the LOC. Not by you personally, necessarily. So it's incredible. This outlines the business structure and what's vital to lenders to see that you are really real. And it allows you, someone, to be able to do it. Also, think about a co-signer that may help push things faster. So there you have it. Those are the steps to be able to take to file your LOC. It's easy. Skip one of these is a big mistake. As a founder, as a company CEO, you don't want to waste your time backtracking or starting all over if you pick the wrong name, built the wrong type of business. You want to do it right the first time. This stuff is simple. You do it right the first time, you'll secure more funding, and you'll be able to grow and scale your business. Thank you so much for watching. Not to mention, if you build a entity, you can sell it later because it has value. It's real. It has credit history. I've seen them trade for anywhere from $5,000 to $100,000 for an entity somebody's created. So you're building an asset too, which is incredible. Thank you. I'm Andrew Cartwright. Love you.