[CIsaac]

For some of your future ideas, you might have to go with a C-Corp in the future where one parent company houses the other ventures; or at least position your LLC a smarter way (but your attorney can give you the right answer on that). To start, an LLC is usually one of the best choices; it's easier to register, protects you from liability and you can choose to have one owner, or have an owner and 2 managers, etc. You can also choose to break down percentages of who gets what % of ownership if you get investors or partners.

With a C-Corp, there's certain guidelines to follow (i.e having a Board of Directors). However, some banks may look at corporations differently when approving loans (because they may enter the corporation as its own entity; whereas with an LLC, they still look at your personal history), but again don't take this as a straight answer because it depends on the bank and the region. Even so, the corporation usually has to show some tax returns and sales track record.

I think that since you have restaurant management experience, you are a step ahead but like others have said, it is one of the toughest industries. Banks sometimes approve the loans but it is difficult--because most places have to be fully staffed, the competition is huge, the start-up costs are huge and the first year is usually tricky. So they look at how much cash you have and compare it to a % of how much you want to borrow, then they look at % of your revolving debt v. your networth.

The problem is that most people opening restaurants don't have a whole lot of cash but require a whole lot of capital, so loans don't get approved. To start positioning yourself, start smaller: register your biz, get an EIN number, find a small location first (look for old restaurant spaces for lease) then go to a bank and show everything you have (biz plans, etc) tell them you need to get this spot and hire employees... Or whichever way you do it but just make sure to have the spot in ques before asking them to give you $ to look for a spot. Ask them to try an SBA express application (if you're lucky and your industry is on the approved-list, it may take about a week or less turnaround time if you have good credit and no papers to show)

Hope some of this helps...

Cheryl

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IBS - Isaac Business Services

[SSpiro]

Fantastic info.. Thank you Cheryl, MUCH appreciated.