BizFilings Suggests Incorporation Can Make Difficult Funding Easier to Get
MADISON, Wis. (June 30, 2011)
Have you been pounding the pavement in search of a job but not having any luck? BizFilings, a leader in online incorporation services, points out that summer may be the perfect time to start your own small business.
A recent Gallup Poll reveals Americans are increasing their discretionary spending as summer kicks off. This suggests we’ll start to see a modest rise in spending. As a result, businesses are likely to see an increase in sales, making summer an ideal time to strike out on your own.
Of course, there’s the matter of raising the startup money. If you plan to bootstrap, you’re all set. However, if you need to find funding to get started and your friends and family are tapped out—you may need to think creatively.
As you may have heard or experienced recently, the former go-to funding source of choice—banks—have been tightening their lending practices. It may be difficult to secure a loan even if you have near-perfect credit.
The good news: Money is out there, if you know where to look. Following are two emerging sources of capital to consider as alternatives:
- Crowdfunding. Crowdfunding, a relatively new phenomenon, is where a group of people pool their money to help start a business. While crowdfunding comes with some risk, there are also benefits. Startup America Partnership, a program launched by the White House earlier this year, has more information about alternate funding at StartupAmericaPartnership.org.
- Business development corporations (BDCs). Wall Street is planning to fund small businesses through BDCs. According to a June 9 Bloomberg article, 12 investment firms are arranging $1.38 billion of initial stock offerings to funnel cash to the small businesses. Bloomberg reports this wave of BDCs is the largest in at least seven years, based on data from Ipreo Holdings LLC in New York.
No matter how you decide to fund your business, you want to paint the most attractive picture possible to potential lenders and investors. Having a formal business structure, by forming an entity such as a corporation or limited liability company, can make difficult funding easier to obtain.
"Incorporating your business can help put you in charge of your financial future," says Karen Kobelski, general manager of BizFilings. "Incorporating adds a layer of credibility to your company which is appealing to your investors; and more importantly, incorporation gives businesses a layer of protection and limits personal liability."
BizFilings has more than 500,000 satisfied entrepreneurs who have started their dream businesses. Incorporating businesses large and small, BizFilings' expertise gets entrepreneurs the help they need by making online incorporation easy, fast and affordable.
For more information on the important benefits of incorporation, visit the BizFilings Online Learning Center.
BizFilings is a full-service, online incorporation service provider, offering small-business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent Service, helping keep businesses in compliance with state regulations. BizFilings can be found online at www.BizFilings.com. BizFilings is a part of Wolters Kluwer, www.wolterskluwer.com, a leading global information services and publishing company. Wolters Kluwer, with 2010 annual revenues of €3.6 billion, employs approximately 19,000 people worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America.