Each time you provide a personal guarantee for any type of credit extended to your business, you jeopardize your personal assets such as … savings and investment accounts … your car … and even your home.

If your business can’t pay off its debt, the bank will come looking for YOU to make good on the loan.

A business entity established as a sole proprietorship is most susceptible to this risk.
Although you can build business credit as a sole proprietor, you will be completely liable for all personal and corporate debt. Your credit history will be based solely on activity associated with your social security number because you will not have a corporate tax ID number.

As a sole proprietor, you also have no legal means for separating corporate and personal credit.

The best way to protect your personal assets is to incorporate your business. You’ll shield yourself from personal liability for the company’s debts and typically will also reduce your tax burden.

If you’d like to get in touch today with one of our financing experts, simply email us at info@wealthbudget.com and ask for a free phone consultation: FREE ASSESSMENT

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