Many businesses are started with people taking out a small business loan. When loans like that are taken out you immediately begin the dangerous practice of starting a business with debt payments. It is easier to create a business via the corporate path where a group of members each chip in money to completely fund a business venture. Just stop and think about it, if you have thirty five members that invest a thousand dollars each than you have thirty-five thousand dollars capital for the company. Now if those same thirty-five members invest two thousand dollars each than you have seventy thousand dollars for the company. By using this method of everyone investing their money into a common account you not only lesson the burden of financing the company through one individual, you also get to the target money amount the company needs to become fully operational. It is a lot easier to “get rich together” than to try to do it all on your own plus tax laws have always favored corporate America, not single individuals.
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