Business Credit cards and personal credit

[Jeremiah Williams]

I am new to investing. When you are applying to get business credit cards and the bank ask to use your personal SSN is this only to hold you reliable if I default or does it weaken the LLC by allowing someone to "break the vile" and attack me personally for a lawsuit. I am unsure and it makes me hesitate to apply for business credit cards.

[Kevin Sobilo]

@Jeremiah Williams, I believe its "piercing the corporate veil".

If you are applying for the card as your LLC, they are probably asking you to personally guarantee the debt. When an LLC doesn't have a going business and mainly just owns some highly leverages assets pretty much any debt is going to need to be personally guaranteed by the members (owners).

I don't think this is a cause for concern for piercing the corporate veil as you aren't co-mingling funds or in any way treating the LLC or its funds or assets like your personal funds or assets.

You will find the same scenario when you go to get a mortgage under the LLCs name. They will make you sign to personally guarantee the debt. Basically its like being a cosigner on the loan.