Am I personally liable for my company’s debt?
heavyd asked:
I incorporated my company in Nevada last year then applied for several line of credits. My corporation is a C-corp. I used an agency to help me applying for the line of credits and according to them, I’m the personal guarantor of the debt even though the line of credits will not appear on my personal credit reports. Business is not going to well so I’m thinking about folding my corporation. If I am not able to pay for all the corporate credit cards’ debt, will it affect my personal credit score?
ERIK
I incorporated my company in Nevada last year then applied for several line of credits. My corporation is a C-corp. I used an agency to help me applying for the line of credits and according to them, I’m the personal guarantor of the debt even though the line of credits will not appear on my personal credit reports. Business is not going to well so I’m thinking about folding my corporation. If I am not able to pay for all the corporate credit cards’ debt, will it affect my personal credit score?
ERIK
November 2nd, 2009 at 12:14 am
JACOB
Actually that’s what’s good about incorporating your business. Its no longer under your tax ID and is its own taxpaying entity. So if something happens to your business, it doesn’t affect your personal.
For a better detailed answer go down to your bank and ask to speak with their finance advisor about your business. Most will do it for free. Even the manager there will know more about the corporate obligations and where they fall