What are the personal dangers to starting a business and taking on debt?

T

type0

New member
Apr 27, 2012
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United States
That's how the economy is supposed to run, right?

By starting a business I mean forming some type of org(LLC, S-Corp,???) and then taking out debt under said companies to name to experiment with. By experiment I mean play around with business ideas, not launder.

How difficult would it be to get loans under a newly formed organization?

Then I could freely spend that money in an attempt to make profit without any personal danger of bankruptcy or having my credit score ruined or getting thrown into debtor's prison or whatever they do nowadays.

I also hate having my real name attached to business dealings.

Would be pretty cool...
 


You're not going to get business loans and credit under a new business name. When you start a company, it is all attached to you. Your credit. Your everything. You should still do it though. Go on a shopping spree and spend wastefully then just walk away. That shit would be so cash. Post pics too of said adventures here on WF and you'll even be given a premium membership.
 
They make you sign something called a "Personal Gaurantee". So if the business tanks and you owe money on the business line of credit or loans you are personally responsible. aka Don't Fuck Around.
 
Most banks wait for a two year period, with a show of cash flow, before you can get a loan in your business's name, otherwise you can only get a personal guarantee. (They do this, for the exact stupid idea you had of "playing around with ideas".
 
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