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Johny Fernandez: Should I form an LLC to
be a broker?

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Sean Murray: Should you form an LLC to
be a broker? So I don't know that it has

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to be an LLC, per say. But if you're
going to be a broker and a small

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business finance industry, you should
certainly organize your legal entity.

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From the beginning, I think that there's
a tendency for new entrants to think,

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let me try it first. And if it's working
out, well, then I'll do that. Yeah,

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because it costs money to form an LLC,
or form an S corp, or form a C Corp, or

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whatever it is, someone's going to form.
But you're kind of you're kind of

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setting yourself up for some level, some
level of failure, if you're not willing

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to commit that much. Because forming it
like an LLC, you know, it might cost you

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a couple 100 bucks to do it, right,
you're probably going to need a bank

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account in that name, you're probably
gonna need like a tax ID to go along

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with it. But all those things, kind of
prepare yourself mentally, that this is

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the commitment to move forward and by
taking those steps, you're really truly

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saying, this is something I'm going to
try. I'm investing in it to some extent.

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And if you don't do those things, you're
kind of giving yourself an out. But

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yeah, well, you know, what did I What
did I really put into it? You know what

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I mean? Yeah, that type of thing. But
the flip side of that question is,

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should you form an LLC, and it doesn't
have to be an LLC, per se, I'm not, you

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know, I'm not an accountant or a lawyer.
But um, you should really think about

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forming an entity for the purpose of
legal liability, because one thing we

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have talked about on here is that if you
are a broker in the commercial finance

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world, no matter what, no matter what
anyone has told you, about being a

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broker and how easy it is and work from
home and all this other stuff. Yeah. You

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know, there there are certain situations
that arise that will make you feel as if

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you really are in commercial finance.
And you could end up in like a lawsuit,

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you could end up meeting a lawyer and
and you never know what could happen.

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You could be in a contract dispute with
a funding company, you could have a

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merchant that was unhappy with, you know
that what what happened with the funder

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and they're blaming you and you're an
independent sole proprietor, you're kind

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of making yourself legally liable
individually, and you'll want to avoid

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that. So I would say you should
definitely form some type of entity for

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a variety of different different
reasons. One is to protect yourself

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legally, and to prepare yourself
mentally. That this is something you're

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truly interested in pursuing.