Business Credit

[Keith Schulz]

I currently have an LLC set up. Although, all my financing in the past has been in my personal name. I'd like to get to the point where I have enough business credit to finance rehabs.

In any case, I'm getting prequalified business credit card letters. However, I don't currently have a business tax id number. If I apply for a business credit card and use my social security number will this appear on my personal credit, or will it stay seperate as business credit? I suppose I should probably just apply for a Tax ID Number. However, I'm not sure how that would affect my taxes at the end of the year.

Any other input on developing business credit would be appreciated too.

Thanks.

[Michael Shadow]

Deuce,

Get your IRS Tax ID first, you can get that online almost immediately. Then look for a business credit card company. They will want your tax id and your ssn. My business cc doesn't show up on my personal credit report.

If your going to be purchasing properties with your LLC you will still have to personally guarantee the loan but it will not show up on your personal credit report.

If you have really good credit you may also be able to set up a business line of credit with a local bank as long as you sign a personal guarantee.

Your bank is going to want your tax ID as well as your "Article of incorporation" and your "Operating Agreement" for you LLC before they will loan money to you.

-Michael