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| Subject:
Corporate Credit
Category: Business and Money > Finance Asked by: cleanroomdesign-ga List Price: $2.00 |
Posted:
31 Oct 2002 07:16 PST
Expires: 30 Nov 2002 07:16 PST Question ID: 94170 |
When you begin a corporation, does the corporation have a clean slate as far as credit goes? Or does the owner of the corporation's credit follow to it. And if so is there a way to keep the two seperated? Possibly by naming multiple owners in the articles of incorporation? |
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| There is no answer at this time. |
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| Subject:
Re: Corporate Credit
From: neilzero-ga on 31 Oct 2002 11:49 PST |
Nameing multiple owners will dilute the effect of an owner with poor credit, and has little other effects as long as the corporation has little profit. If big profits occur expect the other owners to demand the share specified in the incorporation and more if they think they have a chance of more. Most lenders are smart enough to detect deception of this sort, unless the other owners are real owners. If you identify your self as a different person you may loose all interest in your corporation if it is profitable, or be required to reimburse creditors if the corporation does poorly. If fraud can be proven, the protection of a corpration disappeares unless you have special connections like the Enron theives. Neil |
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