Opening a store as a corporation but since a corporation is an entity to itself, does that mean...?

Question

That it will have it's own credit rating, independant of it's owners and which type would be the best to use. It's just the two of us, we're completely new to the whole process, any advice... please refrain frmo the obvious and smart alec comments.

Answer 1

Yes, it will have it's own credit score by Dunn & Bradstreet. BUT! in a start up most companies require someone to assume the credit risk and that generally means one of the pricipal(s) has to co-sign for the company. No problem right? you're honest and will pay your bills on time? be very cautious, some unscrupulous companies will ask you to co-sign an agreement, then may end up reneging or filing BK on you and in that case you're stuck holding a bill and no goods, sure you can go to court but that costs money that most of use small business owners can't afford.

My advice...co-sign for well known lenders only. Otherwise use an Am Ex. card that will grow with your company.

Answer 2

A PARTNERSHIP MIGHT BE BEST FOR YAWL! RATHER THAN A CORPORATION . A CORPORATION INVOLVES STOCK AND THEN DIFFERENT TYPES OF DISTRIBUTION. CHECK WITH THE " SMALL BUSINESS ADMINISTRATION " LOCALLY AND THEY WILL HAVE ANSWERS. LOOK ON THE INTERNET UNDER SEARCH " SMALL BUSINESS ADMINISTRATION" IF YOU WANTED YOU COULD SIMPLY JUST START AND SELL TO FRIENDS TO SEE IF THE PRODUCTS SELL ETC. THEN ONCE YOU GET YOURSELVES GOING WELL THEN CONSIDER A PARTNERSHIP OR LIMITED STOCK TYPE SET-UP ON THE INTERNET CHECK FOR EXAMPLE: " STARTING A SMALL BUSINESS" EASE INTO IT AND REMEMBER ITS POSSIBLE TO CONSIGN SOME ITEMS ( TO START ) AT FOR EXAMPLE SMALL SHOPS , MAYBE HOSPITAL GIFT SHOPS, AND FAIRS AND OTHER PLACES, SAVE YOU INCOME AND GET LARGER - - - THEN SEEK A LOAN FROM THE SMALL BUSINESS ASSOCIATION ... STICK RIGHT WITH IT. ! ! ! HAVE FUN !

Answer 3

if its just the two of you...i would recommend an S-Corporation for tax purposes.