December 11, 2013 by Aaron Scott Young
The asset protection your corporation provides could be wiped out overnight if you use your personal credit to secure loans, leases or buy equipment. When you sign a personal guarantee your personal assets can be used to repay the debt. Not to mention; you risk your own “personal” credit score.
The only way to reduce the need for personal guarantees is to have the corporation establish its own business credit. By building a solid business credit profile you will be able to start separating yourself from the debts of the corporation.
Business credit can be built with any business entity, but a corporate structure is recommended. A corporation provides the greatest separation between your personal and business credit. Not to mention; numerous tax savings and liability protection.
If you are among the thousands of business owners who are lost in the maze of how to correctly build your business credit, we can help provide the answers to the mystery.