This is my second post on this sub. I got some good feedback last time, so I’m hoping for some advice.
VERY long story short, my business hasn’t been making money since Covid. We are in the event industry, so though we are doing better than we were, we still never fully recovered from the world shutting down for a year.
Before Covid, we were doing amazing and had 0 debt. Now the business has over $800k in debt. We will end the year with about $1.1mil in sales and will have a net loss of about $150k all said and done.
Our brand is very well known and our social media presence is very strong.
My question is this:
Do I try to sell or do I just give up and file bankruptcy?
The main issue is, I am a single member LLC, but signed personal garenteea for the loans (I didn’t know how else to survive).
Thanks in advance for any/all feedback.
You can build your LLC’s credit file so that it’s able to apply for business loans and lines of credit without needing your personal Social Security number to guarantee it. It’s a 9-12 month process but worth it because if you decide to sell, your business is going to be a lot more attractive to potential buyers if it’s able to borrow $100,000 to $300,000 without a personal guarantee. You can sell it for more or if your business has such a recognizable brand, you can put more money into advertising or whatever else and keep it.