A Limited Liability Company, or a partnership gets a business credit check, or personal?

Question

My business partner and I just started up a Limited Liability Company....which is like a partnership only better. So, doesn't that mean our personal credit history isn't an issue? I know a sole proprietor business matters, but if you have 2 ppl (or more), how could a personal check be ran? Please, please please people who know i.e. have an llc, or work at a bank or lending co., etc...thank you in advance

Answer 1

I have a LLC and there are still personal credit checks.  Often they will check both the business and either both members or whichever one of us is inquiring on the lending, credit card, etc.  Just remember LLC's have some great benefits but are still fairly new and are monitored very closely!

Answer 2

Hi Golden,

It doesn't really matter how the corporation is registered the fact of the matter is that there are still individuals who are the foundation of the entity.

You are still going to have to approach a bank as individuals for the purpose of aquiring a buisess loan.

I worked in a bank for years and you still need to provide proof of existence via Articles of Incorp, list of directors and sometimes a list of assets.

The credit checks are individual and will be granted or denied based upon the creditworthiness of all interested parties.