Should I renew my LLC, or start a new one?
Kelly, Eugene, Ore.
I’d like to start a real-estate investment business. I don’t want to fund it with my own credit/name. I’d like an LLC or S-corp. I started an LLC in 2003, but let it expire. I can renew it for $250 or start a new one for about $50. Would it be worth the extra money to renew? Would I have a better chance in getting funding from a lender since the start date was five years ago?
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DiggHi, that is a good question, but the company that you start did you operate it till now or you registered it and that was the end of the road?
Well your question has two facets. First, if you operated it till now then you are better off renewing your license. Why am I saying this? its because most existing companies have a higher name recognition percentage than new ones and the brand (goodwill) might worth more than $250.
Second, if you registered your business and it never operated you are better of registering a new one, in this case you have no brand equity and thus no Goodwill.
Am not suggesting that you registered your business and never operated it, am just looking at it the way you presented it. About the S-corp issue try this http://www.answers.com/main/ntquery?s=S-corp&gwp=13
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Stick with the shelf LLC. your credit ratings will be a big plus.