Bad Buisness Credit

BUBBAT · #1 Jan 11, 2007, 09:34 PM

I Currently Own A Buisness With Mounting Debt. The Debt Is On Buisness Credit Cards. I Have Very Good Personal Credit. If I Do Not Pay A Creditor In My Buisness Will It Effect My Personal Credit. When I Run My Personal Credit, The Buisness Credit Does Not Show Up. Can The Creditors Come After Me Personally Or Just The Buisness.

cycoville · Jan 12, 2007, 12:10 AM

I was in a similar situation and unless you have corporate protection for your business Yes you can be liable for your business's debt.
I was advised to form a corp. An LLC is good but depending on your type of business you may need an S corp.
Both offer the same protectoin without the double taxation of a C corp.
I have an S corp since I'm a contractor.



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