I'm interested in incorporating in order to put my rental business under a business umbrella. Right now it is just me (no business papers, but I report income to the IRS).

I am wondering: can my credit worthiness transfer to my business when I incorporate? Or maybe, can my business rely on my credit worthiness? So new corporations start from scratch as far as credit worthiness?

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    Banks will probably require you to personally guarantee financing until the business has its own financial history. – quid May 4 '17 at 21:42

Are you willing to personally guarantee any loans that your company takes out? If so, then your credit rating will help the company.

If you want to keep your finances completely separate from the company, then there's no reason for anyone to consider the company any more creditworthy.

  • That's interesting. So, maybe while I start the company I can use my credit worthiness then over time transition the credit worthiness to the company? Is that doable? – trusktr Jan 12 '18 at 3:41
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    @trusktr I think it's wrong/unhelpful to say "transition" the credit worthiness. Instead, the longer the company trades (well; paying on time etc.) it's credit-worthiness will grow, the same as any-one/-thing with a new credit score. Independently, you may be able to ease the early growth of the company by personally guarantying company loans (leveraging your credit-worthiness), but this isn't really transitioning or transferring the credit-worthiness. – TripeHound Jan 12 '18 at 8:32
  • Right right, so with my credit worthiness I can get the business a loan, and from that loan start building the business' credit. Thanks! – trusktr Jan 13 '18 at 2:37

If your are looking to incorporate, it is likely that your personal and business credit scores will be kept separate by the credit rating bureaus.

And you will have to start from scratch to slowly build your credit.

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