LLC scheme - loans


TikTok grindset financial gurus will do anything to make a quick buck, preferably by doing as little work as possible. Now, they have discovered a new source of easy cash flow; loans from the bank. Only, it doesn't seem like they understand that you have to pay those back. 


The general scheme involves creating an LLC, (limited liability corporation), and using business loans for that LLC to fund a classic property or car rental business for "passive income." They love that buzzword. Depending on your guru, either the profit from your businesses will be enough to make up for the loans, or the limited liability protection combined with consumer law will be enough to waive the debts. It's not hard to see that both of these are big stretches. 


@lifeordebt #businesscredit #financialfreedom #financialliteracy #fyp #foryou ? Best of Beautiful - JAYBeatz


@dondago_ You can make your own check stubs legally by using a payroll company like ADP. #payroll #selfemployed #businesstiktok #credithack #airbnb ? original sound - ???????‍??



Not only does this scheme neglect the very real struggle of creating a functional business, but things like taxes, interest rates, and the IRS do not seem to be adequately accounted for. And no matter how much it feels like money in the bank, "business credit" is not your own money to be spent freely. 


@lifeordebt #businesscredit #financialliteracy #financialfreedom #fyp #foryou ? Where Have You Been x The Hills - DJ L Beats


@lifeordebt #businesscredit #entrepreneurtok #financialiteracy #financialfreedom #fyp ? I Got 5 On It - Tethered Mix from US - Michael Abels & Luniz


Fake experts like these have always been scammers, and the telltale giveaways are clear to see. Of the two accounts featured here, lifeordebt is selling a "Business Funding Masterclass," and Dondago is selling real estate advice. Both, it would appear, for companies larger than just themselves. That's where their real money comes from. If not, I doubt we'll be seeing them for much longer. 



Still, It's refreshing to see that TikTok get rich schemes have evolved from defrauding the public to defrauding banks and the government. These are the kinds of scams I think I can get behind... in principle of course.