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Sole Proprietorship and LOC

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Moabi
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Sole Proprietorship and LOC

Postby Moabi » Tue, 28 Mar 2017 10:14 am

Good morning,
I am under a DP. I created a Sole Proprietorship 2 years ago and got a LOC to be able to work. My husband changed job so my LOC was cancelled. MOM told me that they can't provide LOC for Sole Proprietorships anymore, since last year. Does anyone know if there is any solution?
Thanks in advance.

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Strong Eagle
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Re: Sole Proprietorship and LOC

Postby Strong Eagle » Tue, 28 Mar 2017 9:17 pm

Did you have a viable business? Did you make any money? Did you file your SP return with your personal return?

My view is that if you have a real running business and are paying taxes, you can probably appeal and win. If you've had a dormant business, or one that looks a lot more like a hobby than a business, you probably won't get the LOC.

I judge that the LOC has been abused to the point where MoM is now much more wary about granting.

Moabi
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Re: Sole Proprietorship and LOC

Postby Moabi » Tue, 28 Mar 2017 9:40 pm

Thanks Strong Eagle. I have made money but not enough to pay taxes. I worked a bit less to raise my son but since the beginning of the year I have some contracts signed and should be back full time in business. That's why I'm a bit frustrated. But if they look back they might say that the business was not enough.

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Strong Eagle
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Re: Sole Proprietorship and LOC

Postby Strong Eagle » Wed, 29 Mar 2017 12:16 am

If your business is professional in nature, you had previous income, and you have contracts for future income, then I would appeal. I would also include a short business plan to lend credence to your desire to run a business. I've written many times about business plans. Do a search.

There is nothing on the MoM website that specifically excludes a LOC for a situation such as yours. Thus, your goal and challenge is to convince the MoM folks that you have a real business, know how to run it, and will be making real money. Hence, the business plan... projections, break even, anticipated revenue, marketing, etc.

I'm not saying you need everything in this template, and, it's a guide for things you ought to consider.

http://www.herberts.org/miscdocs/Sample ... ntents.pdf

Moabi
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Re: Sole Proprietorship and LOC

Postby Moabi » Fri, 31 Mar 2017 11:26 am

Thanks a lot!!


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