Government and Banks
Once we had the name, we needed to register the business with the State of Michigan. I didn’t realize how easy this was, so I hired an attorney to register the business, obtain a federal ID number, and prepare Articles of Operation.
Once you have your federal ID number, it’s time to go to the bank, open a checking account, and apply for a loan. When I opened Compass in 2010, the economy was not doing well. I needed about $50,000 to start the business. I started with my own money, a loan from my sister, and a small business loan of $30,000. At this time, the banks weren’t loaning anyone money, particularly a single mother in the commercial real estate business; however, the Small Business Association looked at my excellent credit and immediately gave me a loan.
I was able to pay off this loan early, and since then, I’ve never had any issues getting loans for the business.