I understand that it takes a while before a lending institution will loan to a LLC without taking into account the credit of the owner. This is my situation. I want to form a LLC and also have my wife as a member. I have bad credit, she has good. If I applied for a loan (either for a property of as a small business loan) as an LLC, would I need to use my information also, or is there a way to only use hers? Do they only take the credit information from the majority owner or everyone involved? If the ownership makes a difference, how should I divide the membership of the LLC?
Howdy Zion:
You can have your wife be the only personal guarantor on the notes as a member of the LLC. Some banks will not do this for unsecured lines etc buy mortgage companies are not as picky. You will want to find a good broker who has several sources and not just one.
Thanks a bunch tedjr. There is hope yet.