topic Re: Changing credit lines from Sole Proprietor to S Corp in Business Credit

Changing credit lines from Sole Proprietor to S Corp

Anonymous — Fri, 17 Apr 2020 10:16:14 GMT

Hello, I am new to the forum. It's been about 6 months since i changed my business to an S Corp, and last week I called up Capital One/Spark about adding my EIN number to my credit card info (instead of just SSN). I was advised that since I disclosed that my business structure changed they will close my account in 60 days and that I have to re-apply on-line with my EIN as their sales department is closed due to COVID-19. This is not what I wanted to hear. After the call I went online to apply and I was declined because of too many recent hard inquiries on my report (mortgage/ppp/eidl- my credit score is typically between 760 and 820). This was not the outcome I expected and I figured that was the end of my relationship with Capital One Spark (my preferred business card-- 2% cash back). 2 days later someone from CapitalOne calls me and said they were auditing the cancellation and that if I could prove i was the 100% owner of the S Corp that they could change the card without another hard inquiry. I've uploaded them the necessary documents and still waiting for a response.

I also have a US Bank and a Chase Saphire business credit card that I would like to update with my EIN. I am reluctant to call them for fear they may cancel my credit cards.

Does anyone have any experience with this? Also, I would like to establish some Net 30 credit lines (I've seen Uline mentioned a lot on this forum) to build my credit but I can't take one more HP maybe for a year or more. Will Uline ask for my social security number or just my EIN? HP?

Thanks in advance for your help.

Re: Changing credit lines from Sole Proprietor to S Corp

Anonymous — Fri, 17 Apr 2020 14:14:34 GMT

Follow up: I called my other two credit card companies and didn't have a problem updating my EIN/business structure- I just need to provide documentation. The key phrase when talking to customer service for me was to add that the new structure is a "Single-member LLC"

Re: Changing credit lines from Sole Proprietor to S Corp

DapprD — Fri, 17 Apr 2020 15:17:03 GMT

Hello @Anonymous

If you are looking to add NET 30 accounts such as Uline or Quill, you can fill out the application and if it asks for your SS# just leave that area blank, they will just try to approve the account without a PG and if not they will reach out to you to ask for your SS# and at that point, you can decline if you don't want your Personal Credit pulled.

Hope this answers your question.

Re: Changing credit lines from Sole Proprietor to S Corp

Anonymous — Fri, 17 Apr 2020 16:26:05 GMT

Follow up #2: I had no problem getting a small net 30 trade account for Grainger.com and Uline.com-- they did not ask for EIN or SSN, and no hard or soft credit pulls. I think they found/find record of my LLC somehow...

Re: Changing credit lines from Sole Proprietor to S Corp

Flexfanatic — Sat, 18 Apr 2020 14:27:50 GMT

I was just going to post about this same type of situation this morning but glad I saw this post. I currently have a Sole Proprietor that Iooking to "change" to a single member LLC but have been holding off until I got some clarification.

I setup the Sole Proprietor about a year ago and have four business credit cards (actually 5 but I don't use it becuase it reports usage and balances to personal credit bureau's). These CC's range anywhere from $15k to $30K in limits so I don't want to lose them so the plan is for me to perform the following:

Register a single member LLC in my state of Maryland where I reside (I checked and my business name does not exist)
See if its possible to change my business information through my credit card portals and if not call the lenders (American Express, Flagstar, Capital One, and Chase)

Hopefully I don't run into issues as I'm in good standing with them and a few I have taken and paid back business loans.

Re: Changing credit lines from Sole Proprietor to S Corp

DoogieBall — Tue, 28 Apr 2020 05:04:55 GMT

I've recently changed from Sole Proprietor using my SSN to Single Member LLC with a new EIN. I posted a few months ago about this and if anyone is interested, here is the thread.

https://ficoforums.myfico.com/t5/Business-Credit/From-Sole-Proprietor-to-Single-Member-LLC-What-happens-to/td-p/5833637

My only experience is with Amex. When I called them to add my EIN to my existing business profile, I was told by the CSR that it was required that I apply for a new CC. The Simply Cash Plus card that had been my first Amex Business card was no longer offered so I applied for the Blue Business Cash and was approved.

Most of the DP says that a new profile will be created with the EIN. There was a few people that said their business structure changes were all combined into the same profile.