Sole proprietor credit reporting
Can I establish business credit as a sole proprietor using my Employer Identification Number (E.I.N.)?
It's very difficult to establish business credit as a sole proprietor. Credit history is based on the performance of a borrower, whether a person or a legal entity, such as a corporation. Whatever credit is in your name, whether personal or for your business, is seen as your personal history.
The purpose of building business credit is to separate it from your personal credit. The best way to do that is to form a business entity, corporation (C or S) or limited liability company (LLC), and establish credit in that entity's name.
Brain Trust contributor:
© 2007, Small Business Network, Inc., All Rights Reserved.
AskJim ID: 2038