Posted by Steve (Atl) on July 02, 2003 at 15:33:54:
The business will still need a track record. Even credit cards (which will be unsecured) require personal guarantee for their lines. Get a credit card in your name an in a few years of business, you may be able to get your company added to it then. But they will need a track record first. You may want to contact a small bank where you have your account and see if they may be able to work with you and your business.
LLC Credit establish - Posted by Gusto
Posted by Gusto on July 02, 2003 at 11:09:38:
Hello to All
Does anyone know how to get credit established for an LLC without affecting my personal credit. Being it is a pass through entity and you have to use your SS# when applying for a credit card etc. How does that work?
Re: LLC Credit establish - Posted by Dan-IN
Posted by Dan-IN on July 03, 2003 at 07:33:30:
Open a savings account in your LLC’s name and deposit $1000 in it. Ask to borrow $1000 from the same bank using your savings as security. Take that borrowed $1000 to another bank and open another savings account. Borrow $1000, again, using your savings as security. Repeat this process in 4-5 banks. After 6 months, pay off every bank. You will have established credit in these banks and made a positive impact on your LLC’s credit report.
Dan-IN
Re: LLC Credit establish-try this! - Posted by wade
Posted by wade on July 02, 2003 at 23:21:21:
We opened a bank acount at wells fargo with a brand new LLC in california. We asked for a credit line for $30,000.00. My partner and I recieved a credit line for $10,000 and personal cards with LLC for $5,000 each. $20,000 total credit . The interest rates were
15% to 19%. It pays to shop around. Wells fargo is great because it ties the credit card into overdraft
for your checking. The week before I went to wells fargo i had to go through a full loan application for $1,000 overdraft at another bank. I only wrote 1 check . To wells fargo . Hope this helps.
Dunn & Bradstreet - Posted by Gib
Posted by Gib on July 02, 2003 at 20:35:47:
As Gary suggested, register your new corp. with D&B. You can then go for corp. credit with stores like Staples and Office Depot.
Gib
Re: LLC Credit establish - Posted by Steve (Atl)
Posted by Steve (Atl) on July 02, 2003 at 13:54:45:
Unless you have been in the business for years and have a proven track record, the banks are going to want you to personally guarantee it. Tell me, if you sold a house to an individual and they said that they had just formed a corporation and would like to have the corporation sign for the house and be responsible for the payments, would you go for that? I know that I sure wouldn’t
Re: LLC Credit establish - Posted by Gary (WA)
Posted by Gary (WA) on July 02, 2003 at 13:08:31:
Try Dunn and Brad Street.
do a google search, and I’m sure you will find out what exactly to do.
Re: LLC Credit establish - Posted by GUSTO
Posted by GUSTO on July 02, 2003 at 14:06:12:
Steve(ATL)
I understand what you are saying but I’m just trying to get credit built up by getting a credit card in the LLC name along with a few other things. As far as purchasing a house and thinking a bank will treat me as if I’m bill gates I know that’s a no no. I just want to start small and build up the credit status without it being on my own credit report. Yes I know I will be the one to sign in beginning.
Thanks for your reply.
Re: LLC Credit establish - Posted by Stewart Preston
Posted by Stewart Preston on July 02, 2003 at 22:36:57:
You know, I have two credit cards for my business and now that I think of it, they don’t show on my credit report. Not sure when I got them but I think they came along in the mail sometime after I started my business (9 years ago). I guess you could just apply but in my case I probably had the business a few years before one was just sent to me. I will be interested to know how it works and I am starting up an LLC also. Keep us posted.