I own a single-member LLC and used to operate it with a semi-truck. After selling the truck, I went back to being a company driver, but I’ve kept the LLC active and in good standing. All reports and taxes are up to date.
Now I have an offer from a company that says they’ll keep me and any trucks I provide busy. To make this happen, I need to apply for SBA funding. A local bank said I’d qualify with a solid business plan.
Here are my main questions:
Has anyone faced a situation like this before? Should I keep my current LLC or start a new one?
How do I go about changing my NAICS code? I realized I picked the wrong one, and I don’t want to miss out on funding.
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Are you planning to stay a company driver, or are you going to fully transition back to running your business with more trucks?
Regarding the NAICS code, it’s not a dealbreaker, but it’s good to have the right one. Banks typically check it during underwriting, so you should be fine if you’re transparent about what you’re doing.
As for the funding, work closely with your loan officer. They’ll help make sure the details of your business plan align with what underwriting needs. Just be honest about your plans, and they’ll guide you through the process.
@Raven
Thanks for your reply! I’d stop being a company driver and focus fully on the business. I’d start with one truck and scale up over time.
I want to fix the NAICS code because it’s currently listed as local trucking, but I plan to add the code for long-haul trucking too. I also plan to include a business plan and a letter of intent from the customer to strengthen my application. Do you think this will help?
@Breck
The business plan and letter of intent will definitely help. Loan officers usually want all the supporting information they can get to make a strong case for you.
For the NAICS code, I understand why you’d want to fix it. The difference between local trucking (484110) and long-haul trucking (484121) isn’t huge when it comes to default rates, but having the right one could make things smoother. Best of luck with everything!
@Raven
Thanks again! That’s exactly the adjustment I was thinking of for the NAICS code. I’ll make sure to include the letter of intent with the business plan. Appreciate your advice!
Breck said: @Raven
Thanks again! That’s exactly the adjustment I was thinking of for the NAICS code. I’ll make sure to include the letter of intent with the business plan. Appreciate your advice!
No problem at all. Let me know if you run into any other questions. Wishing you success!
Sounds like an exciting opportunity! If your current LLC is still active and in good standing, you might be able to keep it and pivot toward your new business plan. Just make sure everything aligns when you apply for SBA funding.
To update your NAICS code, you’ll likely need to update it through the IRS or your state business filings. It’s good that you’re on top of it.
Good luck with the funding process! If you need help with business planning or financial advice, feel free to reach out.
Breck said: @Laken
Thank you for your response. It’s an exciting but nerve-wracking time. I’ll look into how to update the NAICS code in my filings.
You’re welcome. It’s normal to feel a mix of excitement and nerves during a big transition like this. Updating your NAICS code will help ensure everything is aligned for funding. Let me know if you need more guidance along the way. Best of luck with your business!