Business Entity and Credit

I have a neighbor of mine who went to one of those Thomas Kish business credit workshops. He’s been telling me about Forming a corporation and getting credit partners to build credit. I’ve also heard of buying shelf corps. I hear great things about LLC when in comes to real estate investing, but the seminar he went to was all about putting everything into a C corporation and not on your personal credit. Is all this real or a scam? Real Estate investing aside, is a C-corp really better than an LLC in this situation??

One isn’t better than the other. One is a better fit for the specific situation. You haven’t provide enough detail to even begin to answer the question.

Well I guess the situation I am interested in is:

Me or me and my wife forming an entity and building business credit buying everything meaning all of normally personal items under the business entity. Making my personal life look like I don’t even own a pot to piss in but my business entity having money flowing like water in a river.

Personal items are never deductible and this tactic will land you in a heap of trouble with the IRS. In addition, using a business entity for personal items voids the entity.

The question is answered in terms of financial goals and planning, estate planning, retirement needs, financial responsibilities, tax planning, succession planning and a host of other areas with respect to your stage and situation in life. It is not something that can be answered in a public forum. It will take several sessions with a team of qualified planners to draft a plan that meets your needs.

Please do a search in this Forum on “co-mingling”…


I personally think the Business Credit Guru seminar industry is a waste of time and money in this credit environment. All the old rules are out the window as lenders are changing their requirements every 4 seconds.

If you want your entity to be able to get a business loan, then go to your bank and ask them specifically what your entity needs to qualify. Then, after you get that list, recheck with them every 30 days to see if the requirements have changed.

Have you’ve listen to the John Hyre, business entity audio (under free books and audio)? He gives a ton of information that i think is essential for any investor. It’s about an hour and half long but i can’t emphasize enough that it’s very good info, he does touch on C Corps.

Good luck