Business Loans

Why should I incorporate or form an LLC?

businessloans | 22 April, 2009 20:43

Answer: The advantages of incorporation or forming an LLC are numerous. This is especially true regarding building business credit history under a separate business entity. Sole proprietors who apply for financing under their own name will find the history of the loan on their personal credit, and lowered FICO scores and loss of credit due to increased debt.. Furthermore as sole proprietors are one and the same as the business they do not have asset protection and tax advantages offered by a corporation or LLC. For a more detailed analysis on how this pertains to your individual financial solution please call the office.