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We want to start with a select group of members/lendees at $60,000.00 and increase each year
Right now we are looking for answers on how to incorporate and preferably which state would be most conducive to this type of business. I am sure that legal advice is needed in order to get started.
In direct answer to this question, I am sure that we will need to hire an attorney. But in which state?
This is absolutely the best information that I have heard thus far :) I am so determined to do this. I just may have to set up a line of credit in addition to what we have. Also, I just might start in Louisiana and extend as we go along--one state at a time. I have just a few more questions so that I can be better informed:
What is a disclosure of ownership?
Why do I register in another state as a foreign corporation?
This is very new to me, but I am determined to make this happen as I really do not like predatory lending practices and I hope to make a difference as far as these practices are concern by taking tiny steps at first.
A: Because, where a corporation does business in a state other than its state of incorporation, if it does not register, then the new state refuses to recognize the corporation's legal existence. In most states, this means that the corporation is prohibited from brining, maintaining or defending a legal action against any other party. Consequently, you could make a loan to a borrower, and then when the borrower defaults, you would be unable to sue to collect your money -- because your corporation is not registered in the other jurisdiction.
Also where lending is involved, you need a license from the state, and unless you are registered in the state first, the regulatory agency will simply reject your application, because, once again, it does not recognize the legal existence of your corporation.
Hope this helps.
You are awesome. I have one last question. Do you know of an attorney in Lafayette, Louisiana who would be able to assist me in this venture? I have already gone ahead with a very detailed business plan and of I am heavily into my research. I am going to need a good attorney and an accountant to keep me straight while I move forward
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