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Roger, Attorney
Category: Legal
Satisfied Customers: 30910
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Im 23, and would like to open a franchise in a different state.

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Im 23, and would like to open a franchise in a different state. What do I need and where do I begin? Am I too young to get approved for a loan? If so how much longer should I wait? How does one prepare?

Roger : Hi - my name is XXXXX XXXXX I'm a litigation attorney. Thanks for your question. I'll be glad to assist.
Roger : You're not too young to get a loan; being approved for a loan doesn't matter so much about your age - - instead, your credit rating is what will determine whether you can get approved for a loan.
Roger : If you don't have any credit history, or very little credit, you may have to get someone to co-sign with you (like a parent) in order to be approved.
Roger : As for what to do with purchasing a franchise, the most common thing is to establish a legal entity - - like a limited liability company, corporation, etc. - - and operate the business through that entity.
Roger : It's fairly easy to form a corporation. You can do it online or have a local attorney do it for you.
Roger : The cost is usually reasonable as well.

Legal entity? As in a partnership or trust. Correct?

Roger : Yes.
Roger : Generally, businesses are operated as an LLC or a corporation.

Hmm, alright. Now how much credit is enough to avoid co-signing?

Roger : An LLC is the easiest to operate, and is generally the entity of choice.
Roger : That depends on how much you're wanting to borrow, how much money you make, your other liabilities, etc. That's a decision that the bank makes, However, you'd need proof that you could pay back the monthly payments yourself based on your income.
Roger : I'm going to step away, but if you need something further, please let me know.

Thank you very much. I'll be in touch if any other questions should arise.

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