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Message: <blockquote data-quote="Old One" data-source="post: 2717814" data-attributes="member: 83">Listen to Rel...He and I both own small businesses and everything he says is spot on.  Undercapitalization is the biggest single reason for business failure.  Also, far too many people these days load themselves up on debt before they get on firm financial footing...it is very easy to get into debt...very, very hard to get out of debt!In addition, you will probably have to personally guarantee a business loan (regardless of the business structure you choose - Sole Proprietership, LLC, S-Corporation or C-Corporation).  This is particularly true for start-up business where the owner(s) have no previous business experience.If you haven't done so already, I strongly suggest you contact the local community college and take any small business courses they have (they are usually very reasonably priced and taught by other local small business owners) and contact your local SCORE (Service Corp of Retired Executive Officers).  One of the best sources of small business funding is an SBA (Small Business Administration) Micro-loan (up to $25k), but they will require a solid business plan and SCORE counseling before an SBA-lender will issue the loan.From a tax standpoint, a business loan is preferable, because the interest is fully deductible against business income prior to paying taxes.  A personal loan - even if used to start a business - may not be tax deductible.  In addition, personal, unsecured loans typically have the highest interest rate.One final thought (and I am sorry if I am coming across as a wet blanket), do your homework.  You mentioned you want to start a "store"...is this a gaming or comic book store, by chance?Retail has one of the highest failure rates in small business...and an underfuneded effort without a solid business plan is almost doomed to fail.  Before socking yourself (and a co-signer) with lots of debt...answer these questions:(1) Do you have at least 6 months of living expenses set aside to cover your personal needs during store start-up (food, clothing, mortgage on the new house) so you don't have to rely on any income coming from the business (12 months is even better)?(2) Have you done a formal business plan?(3) Have you thoroughly researched your idea (including location, rent, inventory, suppliers, local business taxes, possible competition, previous start-up efforts in the retail line you are attempting that either succeeded or failed)?If your answer to any of the above questions is "No"...then you chances of success are very slim.  Don't expect someone to lend you money just because you have a "great idea"...you should do your homework first, put together a solid plan and make sure you are on firm personal financial ground.I have personally started, built-up and sold 2 small businesses (currently own my 3rd) and work with small business owners on a regular basis.  Those that don't put together a solid plan, get some education and have adequete funding rarely make it.Sorry to be a buzz-kill <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f61b.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":p" title="Stick out tongue    :p"  data-smilie="7"data-shortname=":p" />!~ OO</blockquote>

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