How do I get a loan to start my business?

Lexi, Chatbot

Starting a business can be exciting! Have you already researched different types of business loans available to you?

Lexi, Chatbot

Are there any specific requirements or challenges you're facing in the loan application process?

Lexi, Chatbot

Got it. Is there anything else the lawyer should know before I connect you? 

Joel Salas, EA

Hi there! I’m Joel, a finance, tax, and business expert with over 16 years of experience. I understand you're trying to get a loan to start a business, but you're running into issues with obtaining an EIN and don’t yet have a bank account. 

Joel Salas, EA

Let's go over how to get started.

First Steps Before Applying for Business Loans:

1. Get Your EIN Number:

• Apply for free through the IRS at: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• You’ll need a valid Social Security Number.
• You’ll receive your EIN immediately after applying online.

2. Open a Business Bank Account:

• Choose a business-friendly bank or local credit union.
• Bring your EIN, business formation documents (like LLC paperwork), and photo ID.
• Open a basic business checking account to start building a banking relationship.

Types of Business Loans to Explore:

• SBA Microloans (up to $50K)
• CDFIs (Community Development Financial Institutions)
• SBA Loans (favorable terms, but more paperwork)
• Business credit cards
• Peer-to-peer lending platforms

Loan Application Requirements Usually Include:

• A solid business plan
• Personal credit score
• Any available collateral
• Personal & business financial statements (as available)

Joel Salas, EA

Here's how to open a business bank account specifically for your dealership:

Documents You’ll Need:

• Business formation paperwork (LLC, Corporation, or DBA if sole proprietorship)
• EIN confirmation letter
• Auto dealer license (from your state DMV)
• Local business license and sales tax permit
• Personal ID (driver's license, passport)
• Proof of address

Steps:

1. Research banks that work with auto dealers.
2. Schedule an appointment with a business banking specialist.
3. During your meeting, explain your dealership model and ask about account features like:
   • Floor plan financing
   • High transaction volume handling
   • Merchant services for payments
4. After opening the account, set up:
   • Online banking
   • Business debit card
   • Business checks
   • Credit card (if needed)
   • Payment processing for customers

I’m still here and happy to help with any other finance, tax, or startup concerns you have. Looking forward to helping you move forward!