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Old 11-30-2013, 09:59 AM
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snomaha snomaha is online now
LawnSite Senior Member
 
Join Date: Jan 2004
Location: midwest
Posts: 506
Quote:
Originally Posted by GreenI.A. View Post
I went from LLC to S-corp. Every guy on here has a different reason for why they chose their business entity type. Take what advice you get here with a grain of salt. One guy is going to tell you that it won't matter, because in his person case it didn't. When another will swear you need to make the change because that's what his CPA told him. As someone who is about to finish a Master's in Accounting, the best advice I can give you is to talk to a CPA and go the particulars for you business and personal accounting.

One thing I will ask is how big is you business and how long has it been around? Have you begun to build credit under the company name yet? Do you have a duns#? Do you have trade references for credit yet? If so, are those references currently reporting to credit burrows or do they just do small in house credit?

The reason I ask this, even if your an s/c corp, you will more than likely be signing personal guarantees on loans until the company credit can fully stand on its own.
Just had the "personal guarantee" conversation with my banker. Was told that they always require them when loaning to privately held companies.
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