Posted by: Matt B ®
01/31/2005, 20:13:51
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Credit must be established in the corporation's name first, but after that, it can run on its own. A personal guarantee from one of the corporation's officers is indeed needed to ESTABLISH credit. However, after setting a couple of credit cards in my corp's name, after a year, my corporation was able to start getting all sorts of credit by itself. I use different corporations for different things. However, in general, I do use a single corporation for buying and selling my properties. LLCs do not provide nearly enough protection in my opinion. I stick to the larger corporations to add more protection and "legitimacy" to my business. There is typically more paperwork involved, but it is worth it for the tax and legal advantages you get. Let me know if I can help you any further. Matt Bowman
Related link: www.REItoolbox.com
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