Contractor · Bridgeport, CT · Member since 2016 · 15 posts · 11 votes
Hello!
As of November 2016 my electrical company was doing well so I quit my W2 job to work for myself. At the time I was working for someone else, I was growing my company on the side,and accumulating a few months of savings so that I could make that switch to working for myself, and with that I couldn't afford to buy a house. I didn't know that financing while working for myself would be difficult...
Here is my question. Since I started working for myself full time I have been paying myself a weekly income (in the form of a check) from my LLC's bank account to my personal account, shouldn't this show the bank that I have steady income from the business even if I don't have the company for 2 yrs? Anything else I can do besides wait or form partnerships?
Real Estate Agent · Westford, MA · Member since 2016 · 92 posts · 52 votes
9y
You may luck out with a community bank that is willing to look at your previous w2 pay and also your company's tax return for 2016 and possibly year to date financials for 2017. You left a w2 job but moved directly into a self employed role in the same industry.
Real Estate Agent · Westford, MA · Member since 2016 · 92 posts · 52 votes
9y
You may luck out with a community bank that is willing to look at your previous w2 pay and also your company's tax return for 2016 and possibly year to date financials for 2017. You left a w2 job but moved directly into a self employed role in the same industry.
Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
9y
This can be consider on scenario basis. Did you file tax return on your company name before when you had w2 job? if yes you have 2 years of self-employment proof whether it was negative income.
@Harjeet Bhatti yes, last year I did file a tax return for 2016 on my company while on the W2 job, but still halfway through 2017 so I have around year and a half, but company has been doing well, making way more, and can show that.
Contractor · Bridgeport, CT · Member since 2016 · 15 posts · 11 votes
9y
Yeah @Ned Carey prior to owning my electrical company I have about 10 years of tax returns from 2 companies, but I guess I just have be persistant and try at different places.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
9y
@Saulo Queiroz banks are odd in that regard. They prefer W-2 income. Yet someone can get fired overnight.
A lot of it is how you present yourself or your company. You have to have ave a clear plan what you want the money for and how the bank will get repaid.