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Q: Corporate Credit ( No Answer,   1 Comment )
Question  
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?
Answer  
There is no answer at this time.

Comments  
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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