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Old 04-29-2009, 08:41 PM
 
2 posts, read 17,362 times
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It wasn't worth it to appease my curiousity, but I looked up my report. Turns out my business card doesn't show up. I thought I was "building credit" with that thing, but I guess not. Anyway it doesn't matter I suppose as there can only be so much benefit from just buying stuff with credit cards and paying it off without paying any interest. After-all, I have excellent credit and I've never really borrowed money. I'm sure counting that one credit card wouldn't make any difference at this point.

I just use it because I like the 3% cash-back.
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Old 04-29-2009, 09:09 PM
 
56,242 posts, read 28,057,614 times
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Quote:
Originally Posted by user_id View Post
Unless it is a corporation you are more than likely going to be doing a personal guarantee. I have actually never seen a card that does not require a personal guarantee for non-corporate accounts.
If your not a Corporation, your most likely a DBA, you pretty much confirmed what I said.
Quote:
Originally Posted by user_id View Post
Also you have 1800 credit card accounts? Even if that is just general credit accounts that's pretty outrageous for a small business
I have 1800 lines of credit, not the same as credit cards
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Originally Posted by user_id View Post
Small businesses have abused the fact that the credit cad companies usually don't report if you have an EIN. Anybody can apply for an EIN and try to hide their personal debt as business debt, this distorts their personal credit score. The credit card companies are wising up to this tactic.
Hiding personal debt as a business debt is often done, but illegal, just like hiding business assets as a personal asset is also illegal. Its called a corporate vail. Doesnt mean it isnt done, but if one forms a corporation and then transfers assets/liabilities between their personal life and their business, they violate the corporate charter and opens up their personal assets to any corporate lawsuits.. As you said, its often done but this doesnt mean its legal, it just means that if someones company gets sued, they just opened up everything they own personally to be taken by a creditor..
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Old 04-29-2009, 09:14 PM
 
56,242 posts, read 28,057,614 times
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Quote:
Originally Posted by CappyR View Post
It wasn't worth it to appease my curiousity, but I looked up my report. Turns out my business card doesn't show up. I thought I was "building credit" with that thing, but I guess not. Anyway it doesn't matter I suppose as there can only be so much benefit from just buying stuff with credit cards and paying it off without paying any interest. After-all, I have excellent credit and I've never really borrowed money. I'm sure counting that one credit card wouldn't make any difference at this point.

I just use it because I like the 3% cash-back.
You can most likely call the vendor and ask that they move your name from a guarantor to a co-signor and request that they begin to report the payments on your report. For them its pretty much a check mark in the right location to make the reporting take place.

You'll have to sign another application though giving them permission to pull personal credit, report the payments on your report, and thereby holding you liable for its debts.

Explain to them the goal, which is to have the payment show up on your report but also be warned of the consequences. Obviously business debt then will become your liability and that opening up a line of credit will obviously affect your score, in a postive, and negative manner, depending upon what your trying to do..

I'd just hate to see you get turned down for loans, other cards etc because a bank will see a business card and have it appear as a personal obligation. For me this would be a 6 figure line of credit a week added to my report which would kill my ability to finance anything forwhile.
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Old 04-30-2009, 12:01 AM
 
Location: San Jose, CA
6,769 posts, read 16,457,939 times
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Quote:
Originally Posted by pghquest View Post
Hiding personal debt as a business debt is often done, but illegal, just like hiding business assets as a personal asset is also illegal. Its called a corporate vail. Doesnt mean it isnt done, but if one forms a corporation and then transfers assets/liabilities between their personal life and their business, they violate the corporate charter and opens up their personal assets to any corporate lawsuits.. As you said, its often done but this doesnt mean its legal, it just means that if someones company gets sued, they just opened up everything they own personally to be taken by a creditor..
I'm curious, what law does this break? I'm not trying to be a smartass, I'm just wondering what one would be accused of if they did this.
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Old 04-30-2009, 12:21 AM
Status: "Grains....Grains" (set 4 days ago)
 
Location: Conejo Valley, CA
12,312 posts, read 10,201,200 times
Reputation: 4038
Quote:
Originally Posted by pghquest View Post
If your not a Corporation, your most likely a DBA, you pretty much confirmed what I said.
Huh? I'm a DBA? What is that suppose to mean? Any business entity can file a fictitious name.

I have no idea what I confirmed either, you made a general comment that was inaccurate.


Quote:
Originally Posted by pghquest View Post
Hiding personal debt as a business debt is often done, but illegal, just like hiding business assets as a personal asset is also illegal. Its called a corporate vail.
What I'm talking about has nothing to do with the "corporate veil", rather credit risk from the lenders point of view.
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Old 04-30-2009, 05:05 AM
 
56,242 posts, read 28,057,614 times
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Originally Posted by sonarrat View Post
I'm curious, what law does this break? I'm not trying to be a smartass, I'm just wondering what one would be accused of if they did this.
Piercing the corporate veil - Wikipedia, the free encyclopedia in addition to numerous tax code violations.

If you transfer an asset from the corporation to the person, you then become subject to income taxes just like you would if you win a car at as a prize in a contest. This is where they normally grab someone with illegalities, the corporate veil usually nails people who get sued and people can take everything the individual has even if they are a corporatiion.
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Old 05-18-2009, 11:08 AM
 
1 posts, read 5,811 times
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If I had a corporation and closed the corporation. Credit card had some balance. That card never shows up on my credit history. Now Bank of A closed my credit card. What can happen if I don't pay the balance?
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Old 05-18-2009, 01:58 PM
 
1,955 posts, read 3,255,473 times
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Quote:
Originally Posted by HiHelloHi View Post
If I had a corporation and closed the corporation. Credit card had some balance. That card never shows up on my credit history. Now Bank of A closed my credit card. What can happen if I don't pay the balance?
Did you give your social security number when you signed up for the card? If your corporation had been in business for less than 2-3 years,you probably did. In that case, the business card is attached to your personal credit (as there was no business credit history to go on).

If it's tied to your personal report, not paying would affect you in the same way. If not, then I suppose nothing would happen. If the credit card companies find obviously personal charges on the business card, they might be able to go after the cardholder. Don't know for sure, though.
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Old 05-19-2009, 12:59 PM
 
1 posts, read 5,797 times
Reputation: 10
Quote:
Originally Posted by user_id View Post
Unless it is a corporation you are more than likely going to be doing a personal guarantee. I have actually never seen a card that does not require a personal guarantee for non-corporate accounts. As I said if you supply a EIN more than likely it will not show up...but its not universal.

Also you have 1800 credit card accounts? Even if that is just general credit accounts that's pretty outrageous for a small business.

Small businesses have abused the fact that the credit cad companies usually don't report if you have an EIN. Anybody can apply for an EIN and try to hide their personal debt as business debt, this distorts their personal credit score. The credit card companies are wising up to this tactic.
I have a small business that is out of business. I have a credit card from the bank who set up my checking account for the business, that sent it to me about 12 mths after my first year of deposits. I set up the checking account with my S Corp information. I have pulled my credit reports, personal, and have found no trace of this card. How do I find out if Im personally liable for this debt?
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Old 04-26-2010, 01:18 PM
 
1 posts, read 4,614 times
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If anyone has an answer - I am very interested. The recession has hit both us personally and with our small business. We currently have a 10K AMEX balance and little to no income or ability to purchase new products for income. I checked our personal credit report and the business card does not show up. If we reach the point that we cant even make the minimum payment, what are our options or what will happen if we default?
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