Building Business as a Sole Proprietor

[tpatterson2k9]

This might have been asked here before, but I couldn't find any other threads on it.  Anyway, I was wondering if starting a business as a sole proprietor and using my personal social security number as a "dba" rather than an EIN would allow me to establish business credit if I applied for a business CC.  Does anyone have any experience with this?

[flyingmd]

Since as a sole proprietor you are the business there is no distinction between personal and business. Partnerships, Corps, LLC's, etc are considered a legal entity with the ability to make/get loans, etc.... I believe as a sole proprietor, no one will give the business credit without a personal guarantee. And btw, you can get an EIN even if you are a sole proprietor and I would highly suggest you consider doing so. If you ever have employees you will have to get a EIN in order to pay them (can't be done under your SSN and even if you could wouldn't want to). Easy to apply for an EIN online and cost nothing. Can be issued immediately. Then you can use the EIN to open a business checking account and apply for credit. But they will still ask for your personal info and I believe will require a PG. If you happen to find a bank or CC that doesn't require a PG then please let us know. I am aware of none.

[Anonymous]

Max out all of your credit cards, put up your home equity and all other Assets, as well as your children's college/Braces fund, and the grandchildren's inheritance your your sole prop.

Sole Prop. Business=100% Personal Liability (in so many areas).  LOL, my children want a lemonade stand... I tell then NO , FORM A CORP (I like the Verizon commercial with the little girl/kids)

Good Luck!

[Creditaddict]

I 2nd poster 2, get an EIN... That is the only way you are going to be able to build Business Credit.

[Anonymous]

c corp might be expensive in your state (to maintain) but is the best structure for business credit. you just have to separate biz and personal. Phone lines, addresses (ideally a commercial location but if not than a separate location atleast). Sole prop defeats the purpose of business credit building.