Who gets the best (highest/most) line of credit? LLC, S-Corp, C-Corp?

Question

Who gets the best (highest/most) line of credit? LLC, S-Corp, or C-Corp?
Also, how is that determined? If I incorporate in someplace like Nevada, can I get a credit where I live in CA for my business?

Answer 1

If it is a start up operation, it doesn't matter, there is no difference from a credit standpoint. The various terms you refer to relate to legal/tax status and not credt worthiness. If you incorporate in a state other than your domecile, there must be a rationale for doing so and the bank will be the first to ask. Assuming there is a good reason, they will still require an authenticated certificate of incorporation, audited financials and tax returns(usually 3 years back). Most important is what you want the money for, hence a need for a solid business plan, without it, your chances for a line of credit or any type of borrowing are minimal.
If you are just starting out, you may want to consider the small business administration as they are a bit more lenient to deal with although a lot more bureaucratic. However, they will ask for similar data.

Answer 2

you purely might desire to bypass previous a sole-prop in case you think of you're able to get sued easily or might desire to maintain your man or woman legal accountability become self sufficient from the corporate. An LLC is extra straightforward to establish than a company, and an LLC can choose to be taxed as a company (like an s-corp or c-corp) or they could be taxed as sole props/partnerships. LLC take care of the persons' legal accountability, although taxes are the responsibilty of the guy members. a company is its own entity, all legal accountability and tax accountability is the possession of the corporate. An S-corp does not might desire to record company returns, yet i think of they are allowed fewer styles of deductions. companies are extra costly to establish and require extra place of work work to maintain. although, in the adventure that your corporation is trouble-free, a sole prop or an LLC is nice. maximum corporation price are tax write-offs no count what your legal entity is so do no longer make your decision consistent with taxes.

Answer 3

There are no differences.

Company credit is contingent on multiple things. Length of time in business, profitability, assets and personal credit of the principle or owners.

Banks don't give anyone high lines of credit anymore.

Answer 4

The line of credit that you are likely to get is based more on the lenders opinion of your estimated future income than on the form of corporate organization.