Business Loan versus Personal Loan

Discussion in 'Business Operations' started by lawnspecialties, Aug 31, 2006.

  1. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Posts: 2,513

    Is their a considerable difference between business loans and personal loans when purchasing equipment (vehicles, mowers, etc)? I am an LLC so really a personal or business loan doesn't matter a whole lot in terms of taxes and depreciation.

    I know getting a loan for a truck I recently purchased was far easier just putting it in my name instead of going through the bank's business loan department. The biggest concern I have is liability in cases of accidents. That was a huge factor for going LLC in the first place. Thanks:)
     
  2. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Yes there is an important difference. If the equipment is financed and is done so in the LLC (or INC) company name withOUT your personal guarantee (in other words based soley on your businesses strong, good credit and NOT your personal credit) then if heavens forbid your business fails, you are not and cannot be held responsible personally.

    If you took the time to file an LLC or a INC use it to your advantage. You don't think Michael Dell or the president of AMEx personally guaantees their company loans do you? Nope. Plus from a liability stance everything you use in work if you are a LLC should be in the company name, not yours. Nothing I own business wise (equipment) is in my name, everything, all the trailers, trucks, mowers, credit cards, gas credits, fert accts, rental equipment accts....everything is in my company name.
     
  3. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    ditto
    we are inc. as well

    if we were starting now we would be llc
     

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