http://ficoforums.myfico.com/t5/Business-Credit/Building-Credit-SP-vs-inc-LLC/m-p/1590878#M3673 <p>If one builds credit in/as a sole proprietorship can that credit be useful if one wishes to later incorporate?</p><p> </p><p>I ask because I have a chance to build a sole proprietorship (as a consultant) with a specific vendor on a part time basis. I am fairly content that the income stream is secure. Occasionally I can see this having business costs (paper, pens, computers and such) I wondered about the pros/cons of trying to build business credit as a sole proprietor. I expect that all the costs would be less than what I'd be earning so I am grudgingly ok with opening a card with a personal guarantee. I just want to know if I could later use that (hopefully) good credit history when I later try to open a small LLC/Inc employing a few people that may have a less secure income stream. I was told that if one is making a 1 person LLC it's possible to keep the same EIN #. My dreams are a bit bigger than just 1 person though.</p> Sat, 15 Sep 2012 04:35:27 GMT newbiz1 2012-09-15T04:35:27Z http://ficoforums.myfico.com/t5/Business-Credit/Building-Credit-SP-vs-inc-LLC/m-p/1590878#M3673 <p>If one builds credit in/as a sole proprietorship can that credit be useful if one wishes to later incorporate?</p><p> </p><p>I ask because I have a chance to build a sole proprietorship (as a consultant) with a specific vendor on a part time basis. I am fairly content that the income stream is secure. Occasionally I can see this having business costs (paper, pens, computers and such) I wondered about the pros/cons of trying to build business credit as a sole proprietor. I expect that all the costs would be less than what I'd be earning so I am grudgingly ok with opening a card with a personal guarantee. I just want to know if I could later use that (hopefully) good credit history when I later try to open a small LLC/Inc employing a few people that may have a less secure income stream. I was told that if one is making a 1 person LLC it's possible to keep the same EIN #. My dreams are a bit bigger than just 1 person though.</p> Sat, 15 Sep 2012 04:35:27 GMT http://ficoforums.myfico.com/t5/Business-Credit/Building-Credit-SP-vs-inc-LLC/m-p/1590878#M3673 newbiz1 2012-09-15T04:35:27Z http://ficoforums.myfico.com/t5/Business-Credit/Building-Credit-SP-vs-inc-LLC/m-p/1593420#M3676 <p>You will need a new EIN if you incorporate as it is a seperate entity from the business you had as a sole proprietor. Not certain about creating an LLC but I don't think you would need a new one.</p><p> </p><p> </p> Mon, 17 Sep 2012 02:01:26 GMT http://ficoforums.myfico.com/t5/Business-Credit/Building-Credit-SP-vs-inc-LLC/m-p/1593420#M3676 compassion101 2012-09-17T02:01:26Z