Why Separate Your Personal Credit From Your Business Credit? When officers and owners use their personal credit profiles to obtain credit for a business, they risk the chance of lowering their own personal credit scores in the process. There are two reasons you should strive to avoid using your personal guarantee on business credit instead of establishing corporate credit. First is to avoid personal liability. If the business cannot make the payments, each individual signer is personally liable for the debt. Second, because credit obtained for a business can affect your personal credit score.
Course Information
Course Instructor
CEO
Boss
Entrepreneur
Establishing Corporate Presence
Name Your Company Why Separate Your Personal Credit From Your Business Credit? When officers and owners use their personal credit profiles to obtain credit for a business, they risk the chance of lowering their own personal credit scores in the process. There are two reasons you should strive to avoid using your personal guarantee on business credit instead of establishing corporate credit. First is to avoid personal liability. If the business cannot make the payments, each individual signer is personally liable for the debt. Second, because credit obtained for a business can affect your personal credit score.
Many business owners are unaware of just how important location and space is to their business. Getting the right office space is essential from the beginning because you will need to stick with this space until your lease is up. This makes it very important that you choose wisely.
Short description of your first lesson.
Confirm you are listed in 411 by dialing (your area code) 555-1212 – give them your business’s city, state and name, and seeing if they give you back your local business phone number. If you are not listed, get listed (we explain how below).
Becoming a Legal and Viable Business
Now that you have selected your business name, you are going to need to establish your corporation with the state of your choosing.
Obtain EIN. This is the number that you will need in order to apply for credit under your business name without a personal guarantee.
Obtaining Tradelines
Now you need to go to Dun & Bradstreet and obtain a D-U-N-S Number. In the two more years of buidling business credit I have noted one ever constant factor…. Dun & Bradstreet is the leading cause of headaches for businesses trying to build a credit file. New business owners are especially prone to the sales pitches thrown by commission hungry DUNS sales reps. Just about every new business owner tends to ask a question about DUNS or ends up complaining about them.
Companies that offer tradelines to new business’s without asking for a personal guarantee/social security number.
Extended list of companies that offer lines of credit.
Establishing more trade lines.
