Incorporate first or later?

**schnerrydog@mac.com** · 10-02-2006 03:32 PM

I have an idea for a business and am in the raising capital stage. Unfortunately I have had some credit problems in the past that I am now in the process of repairing. (By repairing I mean paying off outstanding debt, living on a budget, etc.) My credit score makes it unlikely that i would qualify for a loan from any conventional lender, but I want to move forward with my plans in any way possible even incrementally. what I was thinking about doing was legally creating a corporation first, and then building on that name in order to establish business credit that would evetually be used to start my business. Is this doable? Is it smart?

**paul2145r** · 10-02-2006 05:29 PM

If you have some money set aside, I would contact the Nevada Corportation- they help build credit for new businesses, and can set everything up for you for about $175.

**MsNadi** · 10-02-2006 06:13 PM

First. Have you determine that incorproating is the best way for you to go (as opposed to LLC, LLP, S Corporation in California etc)?

For more information on the various types: www.nolo.com

**nicvalentine** · 10-08-2006 03:15 PM

I personally would not waste the money on NevadaCorp, You can do everything yourself for much cheaper. This is also a valuable tool that you need to learn if you are going to run a business. When building business credit, it really does not matter what your personal score are, unless you are going for a specific type of loan or credit line that is not biz credit friendly. All businesses need to establish some form of business credit.