Part time LLC credit planning

[JFox418]

Hello all! Just recently found this business forum (browsing the personal stuff for a few weeks now) and thought I'd ask for some recommendations. 

I started my part time LLC a few years ago. I work full time and don't really see the LLC replacing my full time gig but I was doing some side work for people years ago and decided it was a good idea do things legally. I don't really have a plan for it besides taking work as I can and maybe building up the business for our two boys to utilize if they wish. No website and it's based out of my home. Only promotions are a facebook page.

What benefits would I gain from building business credit and what business credit should I build? I haven't done a great job keeping personal/business use seperate and I want to do that better in 2022. I use personal CCs for business purchases. Usually a couple thousand in expensives annually, mainly materials and tooling and sometimes machinery. 

I'm not sure what info you would need so feel free to ask.

2018 Net income (-$2k)

2019 Net income ($3k)

2020 Net income ($5k)

2021 Net income ($6-7k)

Thanks! 

[NYC_Fella]

I'll tell you, I'm a huge fan of keeping business and personal finances separate. But for the small amount of profit that the business is generating currently, I'm not sure it's worth trying to build a credit profile for the business since a PG will almost always be required. Yes, you can open some trade accounts and build a D&B profile but it's a real hassle and really not worth the effort for a part-time business. I speak as a person who has been self-employed for 20+ years and founded and operated businesses large and small.

[4sallypat]

Agreed - keeping business and personal expenses separate is important.

My tax accountant suggested I move away from my small business IRS Schedule C for the past 20 years that combined both personal & business expense to a LLC.

After 20+ years of sole prop, I am considering the move but I have already started my business credit build recently with:

Net 30 (Quill office supplies)

Net 10 (ULINE)

Bus CC (Citizens Mastercard)

Fleet fuel (Fuelman Mastercard)

NAV Business Boost 

Since I have enough incoming, I can afford to switch over to the LLC but will have to start fresh.

[JFox418]

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@NYC_Fella wrote:

I'll tell you, I'm a huge fan of keeping business and personal finances separate. But for the small amount of profit that the business is generating currently, I'm not sure it's worth trying to build a credit profile for the business since a PG will almost always be required. Yes, you can open some trade accounts and build a D&B profile but it's a real hassle and really not worth the effort for a part-time business. I speak as a person who has been self-employed for 20+ years and founded and operated businesses large and small.

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What's a PG? Personal Gaurantee?

I'm thinking about just adding a Citizens business CC which is a personal SP just to have and the FNBO %2 to actually use on purchases and I'll probably just call it a day.