Business Loan Question

[brianm4289]

To take out a business loan would you have to take it out in your personal name to open the business or use the business as a sepreate entity to take out the loan? I was jw because failure is a pretty big concern to a personal credit score apposed to a seperate business entity... thanks guys

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[randallg99]

today's lending market require much more personal stake in biz ventures, especially start up then in past years.

If you have an existing relationship with a bank including deposits and loans, then you may be able to get loans with very little personal exposure.

I just read an article (can't remember where) which claimed the purpose of entity structures have really shifted away from personal exposure to banks.

The article went on to say two of the main purposes for structuring entities today is to eliminate legal liability (think negligence suits) and to minimize tax liability.