Posted by raelynn mitchell on November 26, 1998 at 02:04:29:
just liability protection. Although they are a GREAT tool for that, as well.
Having a corporation can be just like having another Social Security Number but legally. And as such, it can obtain credit that is separate from your personal credit, often for larger limits than for individual accounts, even from the same institution.
And you can legally control as many corporations as you like (although it can make your life complicated once you have “a lot” of them).
Take out the credit cards in your wallet. Contact each of those companies and ask them if they have a corporate account. The answer will sometimes surprise you. It’s true; even Nordstroms and Bloomingdales have corporate accounts. Not to mention Sears, Sam’s Club, JCPenneys, Target, Chevron, Texaco, Home Depot, Home Base, Office Depot, Staples and Office Max. This list is NOT all-inclusive; just ask.
True, you can’t hand someone cash you just received from your corporate Home Depot card. Or can you? (They have gift certificates, or you can perhaps offer the seller of that property something he can use instead of cash, then make minimum or higher monthly payments.) (And yes, you can charge gift certificates to the card. And yes, when you spend them, they hand you cash back for the change–sometimes–depending on merchant policy, which varies from company to company.)
Just food for thought.