Incorporating and using an officer for business line of credit?

[Phranksizzle]

So to my understanding -- I can incorporate , "hire" a "CFO" and use that persons credit to establish credit for my business without any PERSONAL liability on THAT PERSON (the money is still owed -- but its not on that persons name)

So basically I get a family member with good credit, hire them as my CFO on a contract basis that they will be out of the company in a few months to a year. Use that persons credit to establish business credit and then cut them loose so I can still retain all of my ownership of the company.

Is this possible?

[rcavezza]

I'm almost 100% certain a creditor will want a personal guarantee on the loan. They wouldn't give the loan unless they also had an individual to hold responsible in case of default.

For example, they would probably want you and this "family member" CFO to personally guarantee the loan which would make you, him/her, and the company liable in the case of default. Although this depends on each individual situation/bank, this situation should be expected 98% of the time.

Best Regards,

Robert M. Cavezza

[StealYourDreams]

rcavezza is correct, you would need the person to PG the loan. They would personally be liable. It takes years to establish corporate credit and anyone who tells you otherwise is trying to sell you.