Warning: include() [function.include]: URL file-access is disabled in the server configuration in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include(http://www.hurryloan.com/rightbar.php) [function.include]: failed to open stream: no suitable wrapper could be found in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include() [function.include]: Failed opening 'http://www.hurryloan.com/rightbar.php' for inclusion (include_path='.:/usr/local/share/pear') in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78   Go Back To Search Results Question Question re business loans and personal credit history? I'm starting a business with a partner, we're incorporating and planning on having 50/50 ownership. We'll want to apply for a loan or credit line and banks will naturally be checking our credit histories. Here's the issue: my credit history is good, perfectly clean, and improving. My business partner has some big credit card balances from starting the business, has missed some payments... his credit is bad. I'm thinking maybe I should be the 100% owner initially, so my partner's credit doesn't become an issue. Later on after we've established business credit we can change to 50/50 ownership. Does that sound like a good strategy? Thanks for the comments re my partner's credit issues. As background, he is great in retail, customer service, and started the business- currently owns it. Definitely needs help with the financial aspects, and I think the partnership will work well. By RAD Posted on 06/05/07 Total Answers 3 Answers- You can still be 50/50 but just use your credit to guarantee the loan. Do you want a partner with this type of credit history. Answer by : misty m On Date 2007-06-05 10:35:46 NOT AT ALL for one thing any parntership should always be 51%-49% and i still wouldnt agree on partners. since your the one with the good credit you should be sole propietor and he can work for you. you already see he is not good with finances and good decision making so why would you put yourself and your company in a position that you already know is going to fail. if you talk to him/her about being sole owner and there is a disagreement then you have your answer on how this partnership is going to go. not to metion that if its a firned you will end up losing both a business and a friend. im not trying to be negative but i already see whats coming just from experience alone. "dont hate the messenger" also depending on your business you may want to think of the inc part of your plan. #1 you have to pay charter fees for a corperation. #2 you pay tax on income from your coperation then when you pay yourself you have to pay personal income as well as fica and workerscomp everything. the only reason to incorperate is to protect your personal items from lawsuites and its doubtful unless you have more then several employees you're employing it wont be worth it. maybe try the senior core of retired executives (score) in your area they have lots of info for free Answer by : tazmaniac0350 On Date 2007-06-05 10:36:59   Go Back To Search Results