Which Business Structure is Best for Building Business Credit

The best structure for building business credit is one that will:

• Separate you from your business.
• Has it's own tax identification number.
• Separates the debts of the business from that of the owners/officers.

The business structures that will do this are:

• S Corporation
• C Corporation
• Limited Liability Company (LLC)

This is not to say that a sole proprietorship or partnership can't build a business credit profile. The disadvantage however is the business will not be separate from the individual owners. At Business Credit Services™ we will work with any business structure, but recommend using a corporation or LLC.