How to Build and Establish Business Credit
Separate from Your Personal Credit in 10 Steps
Separate from Your Personal Credit in 10 Steps
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1. Set up your business structure
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Starting a business involves planning and part of that planning should concentrate on
business structure. Some of you may already be in business but have not formally
structured your business. In order to build business credit separate from your
personal credit you must decide how you want to structure your business.
business structure. Some of you may already be in business but have not formally
structured your business. In order to build business credit separate from your
personal credit you must decide how you want to structure your business.
This means researching the differences
between the most common ways to structure
a business which are: The C-Corporation;
the S-Corporation; Sole-Proprietorship;
Limited Liability Company and Partnerships
are the most common.
However, each has separate benefits and
drawbacks, especially when it comes to
taxes. Remember, for business credit
separate from your personal credit you will
need to structure your business as a
Corporation or Limited Liability Company.
between the most common ways to structure
a business which are: The C-Corporation;
the S-Corporation; Sole-Proprietorship;
Limited Liability Company and Partnerships
are the most common.
However, each has separate benefits and
drawbacks, especially when it comes to
taxes. Remember, for business credit
separate from your personal credit you will
need to structure your business as a
Corporation or Limited Liability Company.
Keep in mind that many lenders may require a business owner to personally guarantee
a loan if your business is structured as a limited liability company. In every case when
applying for business credit it is imperative that you read the contract before signing.
You can also purchase a “shelf” or “aged” corporation in the State where you want to
do business. See Structure Your Business for more information on the various ways to
structure your business.
Operating your business as a sole proprietorship or general partnership will pretty
much insure you will have to personally guarantee any loan, line of credit or credit card
your business seeks. A creditor may even have the right to personally sue you. This
can be devastating, especially if you are married and your spouse jointly signed for the
credit. If this is the case, all of your joint assets and joint income can be seized to
satisfy a debt.
a loan if your business is structured as a limited liability company. In every case when
applying for business credit it is imperative that you read the contract before signing.
You can also purchase a “shelf” or “aged” corporation in the State where you want to
do business. See Structure Your Business for more information on the various ways to
structure your business.
Operating your business as a sole proprietorship or general partnership will pretty
much insure you will have to personally guarantee any loan, line of credit or credit card
your business seeks. A creditor may even have the right to personally sue you. This
can be devastating, especially if you are married and your spouse jointly signed for the
credit. If this is the case, all of your joint assets and joint income can be seized to
satisfy a debt.
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Business Opportunities
Home-based business opportunities. Earn extra
income from your computer.
Bad Credit Business Loans
Find alternative funding sources if you have bad
credit.
Micro Business Loans
Do you need just a little cash to grow your
business try a microloan from the SBA.
Business Loan Sources
A little creativity and al lot of determination can
get you the money you need.
Home-based business opportunities. Earn extra
income from your computer.
Bad Credit Business Loans
Find alternative funding sources if you have bad
credit.
Micro Business Loans
Do you need just a little cash to grow your
business try a microloan from the SBA.
Business Loan Sources
A little creativity and al lot of determination can
get you the money you need.