We're not an entire week into the New Year but the same old nonsense carries over regardless.

With the dawning of the new year, people are taking "inventory" on their life right now and analyzing where they would like to make more positive changes in their lives including getting their finances in order. And with the pandemic creating more challenges to our way of life, while others are adapting, others are scamming and there's a post that's been circulating over the last few days that is false and if you do it, you are risking FEDERAL JAIL TIME.

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This post about using a portion of your stimulus to start an "LLC" and apply for business loans is not only incorrect, its FEDERAL FRAUD. I'm going to break this ignorance down for you and tell you what's wrong with everything in this post besides the ignorant attempt at spelling which should have been a red flag right there but I'll move on.

1. Take a $165 out of your stimulus to start an LLC: You don't need an LLC to start a business folks and in the state of Texas an LLC is $300 and other states MORE than that, so if you plan to start a business, there's other means.

2. Now go online and get the 5K SBA grant: Okay, this is where you are stepping into CRIMINAL territory. The SBA Grant program is designed to give small businesses who have ALREADY BEEN IN BUSINESS FOR A WHILE a helping hand. Applying for a "grant" from them would require that your "LLC" has a RECORD of doing business including BANK STATEMENTS from your "BUSINESS" and other documentation. Just waving your "LLC" around without having ACTUAL business to show will get you shut down before you can even finish the application process.

But let's say your scamming ass in undeterred by this and LIE on the application and you get said money, the SBA and the IRS will AUDIT you and if you can't produce the "business" you're doing, you're on a first class trip to Federal Jail. But we're still not finished because the next step ain't illegal but you will get embarrassed for trying it.

3. Take out a business credit card and run it up: You know what's going to happen when you go to a bank to ask for said "business credit card"? They are going to want the SAME documentation (Bank statements, EIN, etc.) as the SBA but they will be more direct and to the point in telling you NO. They will not extend credit to an unproven business let along you "Mr./Mrs. LLC" who just started said business this week based off what you saw on Facebook. We're not even going to go into the DEBT you will be incurring.

If you want to do more with your money, talk to people who OWN SUCCESSFUL BUSINESSES about how they got started, get advice from real financial experts and not people who blindly share a post without researching the information but whatever you do, don't blow your stimulus money on this LLC/SBA nonsense because its FALSE and FRAUD.

Quit listening to people who are trying to find "loopholes" and shortcuts, you can't shortcut or replace HARD WORK and at the end of the day, if you want to have a successful business you will have to WORK HARD for it.

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