Benefits to Corporations and LLCs

Business credit can be developed under the usual “C” Type Corporation, or under an LLC. Even proprietorships, partnerships, and “S” Type Corporations can have business credit.

However, because these are small, closely held businesses for the most part, banks will always insist that the owners personally guarantee all debts.

LLCs are viewed as a form of partnership, and single owner LLCs are the same as proprietorships for purposes of credit granting.

Therefore, the only viable form of ownership for the development of business credit is the “C” Type Corporation.


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