Published By Credit Suite at August 25, 2016
I’m commonly asked which corporate entities can build business credit. The answer is simple, ALL entities can build business credit.
You can build business credit with almost any corporate entity type.
But if you truly want to separate business credit from personal credit your business must be a separate legal entity not a sole proprietor or partnership
When you own a corporation or LLC, you are not part of the corporation, you and the corporation are separate. Once you are separate from your corporation, then you can truly separate your legal liability.
So even though any corporate entity can build business credit, only LLCs and corporations can get business credit with no personal guarantee and no personal liability, all because with those entitles the business owner is truly separate from the business.