# How do I write a business proposal?

**URL:** <https://boards.straightdope.com/t/how-do-i-write-a-business-proposal/734976>\
**Category:** In My Humble Opinion\
**Created:** [October 18, 2015, 3:04am UTC](https://boards.straightdope.com/t/how-do-i-write-a-business-proposal/734976 "2015-10-18T03:04:13Z")\
**Posts on this page:** 1\
**Page:** 2

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**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\
**Post date:** [October 19, 2015, 8:14pm UTC](https://boards.straightdope.com/t/how-do-i-write-a-business-proposal/734976/21 "2015-10-19T20:14:50Z")

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> [@FasterThanMeerkats](#):
>
> Higher rates are small potatoes compared to being personally liable for company debts. It just means you’ll need a little more startup working capital until you can establish earning streams and qualify for lower borrowing costs and higher credit card limits for the business.
> 
> S Corp or LLC will be the #1 recommendation of any attorney you talk to. Restaurants have extremely high failure rates and it’s certainly not worth taking the risk of personal liability for a few percentage points on your line of credit or avoiding asking your backer for an extra month of payables working capital.

A corporate or LLC structure is certainly the way to go, but sbunny8 is actually understating the importance of a personal guarantee. It’s not a matter of a few percentage points. A new small business with no collateral will not be able to set up so much as the utility bills without being personally liable. Leases and loans almost always hold the owner responsible.

Which is not a reason to avoid the LLC setup - might as well give yourself at least the possibility of limited liability - but an owner in this kind of scenario should plan on having to repay everything personally.

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