Creating a corporation and BLOC

[Account Closed]

I am about to close on my first rental property. I am planning to create an S corp from the advice of a CPA. My question is, I've been searching for 5 tradelines for my new corp to get Paydex credit. However, I think the recent credit crunch, a lot of companies now require personal guarantee if the business is less than 2 years of operation. I've searched this forum, and there are old posts, most of them lists companies and stores, however when I look their business accounts up they want a personal guarantee for under 2 years. Can anyone get me a list of tradlines that are recent that has worked?

Also....
So, if you create this corporation and some day hope to take a business loan in the corporation's name without a personal guarantee. Even if you have a good business credit score, how do you show the bank that it has income coming in when you have a mortgage that is in your name? Some say refinance, transfer, and put it in the corporation, however I hear that some banks can call in the loan, plus Pennsylvania has a 2% transfer tax. :cry:

My accountant talked briefly about "capital gains"? Can I just put my own personal money into my corporation's bank account?

Thanks!

[J Scott]

I'll touch on a couple of your questions, and leave the rest to others who likely know more about those things...

First, I'm not a tax professional, nor am I an attorney, so take everything I say with that in mind...

I'm not sure the relevance of the capital gains discussion with putting your own money in the company's bank account, but keep in mind that you risk losing the protection your company offers you if you co-mingle your personal funds with your business funds.

In order to do this correctly, the only time you should be moving funds from your personal account to your business account is if you are officially making a loan to the company from yourself personally. And the only times you should be moving money from your business account to you personal account is if you're repaying the loan or if you're paying yourself a salary/dividend, and accounting for payroll taxes.

And, always keep good records of any money moving from personal accounts to business accounts, or between business accounts if they are separate businesses.

Also, you might want to talk to another CPA and/or attorney about setting up an S-Corp to hold your rental property. These days, there aren't a lot of advantages to using an S-Corp for a small business...you can generally achieve the same thing with an LLC taxed as an S-Corp, but without nearly as much overhead.

Again, just my $.02 as a non-professional in the tax and law fields...