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BRBiz

Phase Two Building Credit!

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Most of you have followed along with my other thread on building from scratch, now let's go into phase two! Building a subsidiary business credit profile.

 

This second company was actually started on 7/15 but I hadn't gotten the tax Id till now for it.. This company was setup to build custom homes and some flipping. That won't officially begin till next spring but I want to get the credit going for it now.

 

I will leverage the the parent company as much as I can which is the business in the other thread.

 

Today I ordered from Quill and Uline, both orders have gone through with no issues and pretty quickly also.. Quill's conformation come about 20 minutes after the order, that means it was approved and will ship.

 

I will use my home address for this for now as my other business is at a commercial location.

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I'll be following this as well. We've never tried this, have done subsidiary companies before, but never really tried to obtain separate credit lines. Is it possible to purchase RE, with parent company as guarantor, or will an officer still be necessary?

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I'll be following this as well. We've never tried this, have done subsidiary companies before, but never really tried to obtain separate credit lines. Is it possible to purchase RE, with parent company as guarantor, or will an officer still be necessary?

Generally not unless the parent company had a previous loan with a PG.. Anything is possible with enough money down.

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I am about to start a similar business so I will be watching this. I have lurked theses boards for a while and now getting into a financial state where I can start building my company.

 

I have a couple of questions though, are you categorized as a real estate business or something else?

 

Also I work on a boat 9 months out of a year in Alaska what would be the best way to set this up so I could establish the business and get it credit ready when I finally have the capital I need saved? Forwarding items to a boat in AK can be costly and I lack space to stow them as well.

 

Thanks

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I'm under construction.

 

That will be tough, you need to place orders to get those starter accounts reporting.

Edited by BRBiz

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Was that instant approval?

No took about 30 minutes and I got a email saying it was approved.

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Approved for Amazon Net $5K.

How were you able to get that so quick? What did you have reporting?

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In order to create a subsidiary company, what steps do you have to take with the SOS and your parent companies corporate pages?

 

Does it matter if your parent company is an LLC and the subsidiary company is an S or C-Corp (and vice versa)?

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Approved for Amazon Net $5K.

How were you able to get that so quick? What did you have reporting?

Can't tell all my secrets! Nothing reporting any way, not even a file any place.

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In order to create a subsidiary company, what steps do you have to take with the SOS and your parent companies corporate pages?

 

Does it matter if your parent company is an LLC and the subsidiary company is an S or C-Corp (and vice versa)?

It depends on the state but the main connection is with the EIN and IRS.

 

Sometimes you can have a LLC as a parent with a Corp below it.

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Good job buddy.

 

Once you get all you Net30 are you moving the address or is the final goal to leave that company set up with the home address?

 

 

Sent from my iPhone using Tapatalk

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Are you setting up all the listings and registrations with your home address

 

 

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I already moved the main business address to the commercial location, the second company I'm using the home address.

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Have you seen a difference in your credit limits with commercial locations vs non commercial locations?

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I just switched a few months ago, generally you really won't see a difference in limits but may see easier approvals.

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I think were addresses come to play are when your going for loans or lines of credit or if your trying to add to many corps in 1 home address or even a commercial address

 

 

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The approval with Amazon was actually for $7k, I had put $5k down for usage so I was little surprised by that.

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Approved for Lowes Net account for $5k.. Not sure if they factored the parent company info, I didn't give it but they may have seen it internally.

 

Also app' for Builder Pro card using a cross corporate guarantee. That should be approved no issue

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