Prime's lease deal. The math gets done.

Easy to say that,.........

 

I don't think this is right
If you barrow from your credit card you would want to write off the interest
If you start a business with assets, cash or what ever you would account for that at the end of the year

 

Yeah I recognize that!

Perhaps the only good reason one shouldn't use credit cards as opposed to a bank loan, is the absence of a loan officer slapping you around about your crappy business plan!

But seriously, any formal business course will have at least 6 weeks on the role of lending institutions in your business. MBA's get much longer exposure. The conventional "wisdom" holds people back from accomplishing or at least trying.

 

On the business side you track it as an asset, yes. However you have your own personal ledger reflecting it as a loan to a company, the initial outlay as a liability and the receivables as an asset. You are in effect a bank.

 

Sure if you are setting up a corporation and filing separate taxes from you business
But if you setting up a LLC it really wouldn't matter

 

Those are technical considerations of your financial "disposition". Back to the meat and potatoes of it all I'm saying is that any startup costs for any venture is borrowed money. All the same characteristics are present, you take a smaller amount of money, and invest it, for the sole purpose of growing it.

Loaned cash IS liquidity. If you are using your own money, then you can remove the risk that is present in dealing with and trusting lenders. An inherent risk with credit cards in particular is, if you have a limit of 10k, they may shut it off at 5k because you "used too much" of it. Savings are ideal to avoid these situations. But, theoretically there is no need to use any of your own money. If you're borrowing 50-100k for a truck, having 10 or 15k set aside for fuel and bills becomes a small consideration in the scheme of things.

So, if you are a company driver making 40k, and the market is paying O/O's 75k, what is the opportunity cost yearly of saving all that money to buy everything outright and float when you get around to it? That's where lending comes in.

 

That depends on how you set up the taxation of your LLC. You can elect to be taxed as an S Corp or a C Corp. (One of the benefits of an LLC) As a side note you can change your election during the life of your LLC. You may find after a time you may benefit if you chage status to a C corp because your revenues are increasing. There is just one form you need to fill out and send to the IRS.

So how you elect to be taxed when you form the LLC will determine if it matters or not.

 

An LLC can also be taxed as a sole proprietorship or partnership.

 

You are Howdie Doodie, aren't you??? LOL

 

I thought I was just reading where he was the purple perv.....