You can separate your personal liability and protect your personal assets from that of the business just by incorporating. It is possible to build a business credit profile for a sole proprietorship or partnership; however, you are still responsible for all the debts of the company. We recommend building your business credit as a corporation or limited liability company.
Other advantages of a corporation are:
- Separates you from your business.
- Limited liability of the owners and officers.
- Lower tax liability.
- 100% tax deductible insurance.
- Reimburse 100% of medical expenses.
- Corporate image.
- Raise capital and build credit faster.
- Lower your audit risk as a small corporation.
- Stock ownership – easier to transfer assets.
- Protect Your Personal Assets.
About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.FastBusinessCredit.com or call FBC at 1-888-313-6333 or 702-977-5246.