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LLC vs Incorporation

medic8404
Member

LLC vs Incorporation

As far as business credit is concerned, can you still obtain good credit as an LLC or does a business traditionally gain credit easier as a corporation?

 

I have been strongly considering an LLC vs Incorporating as my business will be small to medium at most in size.

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2wheel
Frequent Contributor

Re: LLC vs Incorporation

It dosent make a diffrence about business credit if your a LLC, S-CORP, C-CORP.

My company is a LLC, I have no problem getting credit for it.

 

 

2wheel
Message 2 of 4
txjohn
Senior Contributor

Re: LLC vs Incorporation


@medic8404 wrote:

As far as business credit is concerned, can you still obtain good credit as an LLC or does a business traditionally gain credit easier as a corporation?

 

I have been strongly considering an LLC vs Incorporating as my business will be small to medium at most in size.


 

An LLC is a corporation (Limited Liability Corporation).  It really depends on what you want to accomplish.  If you are merely protecting assets and liability, an LLC or Sub-S are often used to avoid double taxation that will occur in a C Corp if you have any taxable income within it.

 

But all forms of the corporation can obtain credit.

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Message 3 of 4
uktaurusbulba
Contributor

Re: LLC vs Incorporation

I have 3 seperate llcs, 2 of which Ive built credit on. I have them set up as subs and one is the parent. I have heard people having Corps getting bigger lines of credit. I know, though, that in some states corps have to pay $500 a year in tax minimum, so if your using it as a shelf corp kinda thing, that's alot to pay if its not a revenue generating operation yet.

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