Establishing Business Credit and Business Line of Credit

[celticslegends]

If anyone that has some insight in this area has some advice to give me regarding my questions of building business credit, I would appreciate it. I am well versed on the personal credit side, but now am moving into asset building.

I have had an LLC opened for almost 1.5 years, but I haven't conducted any business activity with it. My personal credit stats and scores are in my sig below. Since I have turned the tide with my personal credit, my focus now is going to be on establishing my business credit. I have one item that will be falling off of Checksystems in November and once that happens I will open a business account at my local credit union, as well as one with another large bank that most are probably familar with. 

When it comes to building Business credit, I understand that I will have my personal credit checked as a personal guarantee, but thereafter, all credit cards in the business name will be seperate from my personal credit report, except for cards from Cap 1 (from what I have read on here) correct? If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

With my business not having any revenue, or history at all making (or losing) money, how difficult would it be for me to acquire a business line of credit, or a business loan through a bank, or lender? What would the necessary steps be for me to take to try and make that happen? 

Again, any answers and advice on any of my questions would be appreciated. Thanks so much.

[Anonymous]

If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

Incorrect. As a  new business you will need to provide a personal guarantee for any credit granted so a default would go against your personal credit.

[celticslegends]

---

@Anonymous wrote:

If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

Incorrect. As a  new business you will need to provide a personal guarantee for any credit granted so a default would go against your personal credit.

---

Thank you for that info. At what point would the personal guarantee go away? 

[Anonymous]

I think the PG goes away after you have an x amount of employees and made more than $3mil the previous calendar year. Could be wrong but I know it's something like that.

[peaceonearth]

---

@celticslegends wrote:

If anyone that has some insight in this area has some advice to give me regarding my questions of building business credit, I would appreciate it. I am well versed on the personal credit side, but now am moving into asset building.

I have had an LLC opened for almost 1.5 years, but I haven't conducted any business activity with it. My personal credit stats and scores are in my sig below. Since I have turned the tide with my personal credit, my focus now is going to be on establishing my business credit. I have one item that will be falling off of Checksystems in November and once that happens I will open a business account at my local credit union, as well as one with another large bank that most are probably familar with. 

When it comes to building Business credit, I understand that I will have my personal credit checked as a personal guarantee, but thereafter, all credit cards in the business name will be seperate from my personal credit report, except for cards from Cap 1 (from what I have read on here) correct? If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

With my business not having any revenue, or history at all making (or losing) money, how difficult would it be for me to acquire a business line of credit, or a business loan through a bank, or lender? What would the necessary steps be for me to take to try and make that happen? 

Again, any answers and advice on any of my questions would be appreciated. Thanks so much.

---

A PG or No PG you can still be liable if you default.

You can't just walk away, there's a process you have to go through..

[celticslegends]

---

@peaceonearth wrote:

---

@celticslegends wrote:

If anyone that has some insight in this area has some advice to give me regarding my questions of building business credit, I would appreciate it. I am well versed on the personal credit side, but now am moving into asset building.

I have had an LLC opened for almost 1.5 years, but I haven't conducted any business activity with it. My personal credit stats and scores are in my sig below. Since I have turned the tide with my personal credit, my focus now is going to be on establishing my business credit. I have one item that will be falling off of Checksystems in November and once that happens I will open a business account at my local credit union, as well as one with another large bank that most are probably familar with. 

When it comes to building Business credit, I understand that I will have my personal credit checked as a personal guarantee, but thereafter, all credit cards in the business name will be seperate from my personal credit report, except for cards from Cap 1 (from what I have read on here) correct? If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

With my business not having any revenue, or history at all making (or losing) money, how difficult would it be for me to acquire a business line of credit, or a business loan through a bank, or lender? What would the necessary steps be for me to take to try and make that happen? 

Again, any answers and advice on any of my questions would be appreciated. Thanks so much.

---

A PG or No PG you can still be liable if you default.

You can't just walk away, there's a process you have to go through..

---

If you have an LLC and have credit cards and other assets in the LLC name, isn't the whole point of creating a seperate entity designed to shield you from lawsuits, bankruptcies, etc? Please forgive my ignorance, but I am trying to understand all aspects of this. What you don't know is what can potentially kill you.  

[peaceonearth]

---

@celticslegends wrote:

---

@peaceonearth wrote:

---

@celticslegends wrote:

If anyone that has some insight in this area has some advice to give me regarding my questions of building business credit, I would appreciate it. I am well versed on the personal credit side, but now am moving into asset building.

I have had an LLC opened for almost 1.5 years, but I haven't conducted any business activity with it. My personal credit stats and scores are in my sig below. Since I have turned the tide with my personal credit, my focus now is going to be on establishing my business credit. I have one item that will be falling off of Checksystems in November and once that happens I will open a business account at my local credit union, as well as one with another large bank that most are probably familar with. 

When it comes to building Business credit, I understand that I will have my personal credit checked as a personal guarantee, but thereafter, all credit cards in the business name will be seperate from my personal credit report, except for cards from Cap 1 (from what I have read on here) correct? If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

With my business not having any revenue, or history at all making (or losing) money, how difficult would it be for me to acquire a business line of credit, or a business loan through a bank, or lender? What would the necessary steps be for me to take to try and make that happen? 

Again, any answers and advice on any of my questions would be appreciated. Thanks so much.

---

A PG or No PG you can still be liable if you default.

You can't just walk away, there's a process you have to go through..

---

If you have an LLC and have credit cards and other assets in the LLC name, isn't the whole point of creating a seperate entity designed to shield you from lawsuits, bankruptcies, etc? Please forgive my ignorance, but I am trying to understand all aspects of this. What you don't know is what can potentially kill you.  

---

That shield can be broken and the court may decide to put the LLC or the Corp aside (Piercing the Corporation Veil),

Creditors can go after the owner if the business was not legit, business or the credit is used for personal.

Can still be liable if the credit application was not signed or filled out as a Corporation etc..

[Anonymous]

---

@peaceonearth wrote:

---

@celticslegends wrote:

---

@peaceonearth wrote:

---

@celticslegends wrote:

If anyone that has some insight in this area has some advice to give me regarding my questions of building business credit, I would appreciate it. I am well versed on the personal credit side, but now am moving into asset building.

I have had an LLC opened for almost 1.5 years, but I haven't conducted any business activity with it. My personal credit stats and scores are in my sig below. Since I have turned the tide with my personal credit, my focus now is going to be on establishing my business credit. I have one item that will be falling off of Checksystems in November and once that happens I will open a business account at my local credit union, as well as one with another large bank that most are probably familar with. 

When it comes to building Business credit, I understand that I will have my personal credit checked as a personal guarantee, but thereafter, all credit cards in the business name will be seperate from my personal credit report, except for cards from Cap 1 (from what I have read on here) correct? If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

With my business not having any revenue, or history at all making (or losing) money, how difficult would it be for me to acquire a business line of credit, or a business loan through a bank, or lender? What would the necessary steps be for me to take to try and make that happen? 

Again, any answers and advice on any of my questions would be appreciated. Thanks so much.

---

A PG or No PG you can still be liable if you default.

You can't just walk away, there's a process you have to go through..

---

If you have an LLC and have credit cards and other assets in the LLC name, isn't the whole point of creating a seperate entity designed to shield you from lawsuits, bankruptcies, etc? Please forgive my ignorance, but I am trying to understand all aspects of this. What you don't know is what can potentially kill you.  

---

That shield can be broken and the court may decide to put the LLC or the Corp aside (Piercing the Corporation Veil),

Creditors can go after the owner if the business was not legit, business or the credit is used for personal.

Can still be liable if the credit application was not signed or filled out as a Corporation etc..

---

This is correct. It's called piercing the corporate veil. In the event of a default, creditors will absolutely try to do that. Unless everything has been done perfectly by the officer/s of the corp holes can and will be found.

[celticslegends]

---

@peaceonearth wrote:

---

@celticslegends wrote:

---

@peaceonearth wrote:

---

@celticslegends wrote:

If anyone that has some insight in this area has some advice to give me regarding my questions of building business credit, I would appreciate it. I am well versed on the personal credit side, but now am moving into asset building.

I have had an LLC opened for almost 1.5 years, but I haven't conducted any business activity with it. My personal credit stats and scores are in my sig below. Since I have turned the tide with my personal credit, my focus now is going to be on establishing my business credit. I have one item that will be falling off of Checksystems in November and once that happens I will open a business account at my local credit union, as well as one with another large bank that most are probably familar with. 

When it comes to building Business credit, I understand that I will have my personal credit checked as a personal guarantee, but thereafter, all credit cards in the business name will be seperate from my personal credit report, except for cards from Cap 1 (from what I have read on here) correct? If something were to happen (God forbid) and I defaulted on the credit cards in the business name, none of them would go against me on my personal credit report and would solely be placed on the LLC correct?

With my business not having any revenue, or history at all making (or losing) money, how difficult would it be for me to acquire a business line of credit, or a business loan through a bank, or lender? What would the necessary steps be for me to take to try and make that happen? 

Again, any answers and advice on any of my questions would be appreciated. Thanks so much.

---

A PG or No PG you can still be liable if you default.

You can't just walk away, there's a process you have to go through..

---

If you have an LLC and have credit cards and other assets in the LLC name, isn't the whole point of creating a seperate entity designed to shield you from lawsuits, bankruptcies, etc? Please forgive my ignorance, but I am trying to understand all aspects of this. What you don't know is what can potentially kill you.  

---

That shield can be broken and the court may decide to put the LLC or the Corp aside (Piercing the Corporation Veil),

Creditors can go after the owner if the business was not legit, business or the credit is used for personal.

Can still be liable if the credit application was not signed or filled out as a Corporation etc..

---

Thanks for the info. I'll be sure to go about this the right way and not mix things up.