[Tidybuoy]

I believe that whether you are a sole proprietor or LLC, the credit will still be in your name.

In my own personal case, I am starting a property rental business and I am in the process of getting it setup. I started by creating the LLC which you can do online thru the state's website (search how to setup LLC). Once you establish the LLC, you will need to get an Employer ID (EIN) which you can do online via IRS website. After that, you need an LLC operating agreement. This is simply a document that states who the members are (can be just yourself or multiple partners), the fiscal year, the purpose of the business, and various other items. In my case, I searched LLC Operating Agreements and there are lots of Legal firms that do this but they also allow you to complete the questionnaire online and then....they trick you by not letting you print until you pay. In my case, I viewed the final document and then recreated in Word. Word for Word. This legal document also has all of the rules spelled out for when you dissolve the company or an owner dies, it will state what the initial investment is (can be just a few hundred dollars), it will state how and when owners can be paid or withdraw money. It also has to be notarized once you finalize it. This basically took me a couple of hours to do but I needed it because I was applying for an equity line of credit in the business name.

Once you have all of the above, you can open a business banking account (and they will want all of the above). You can also apply for various credit cards - in my case Amex and Home Depot Commercial. All of my accounts were based on my own personal credit score.

For the record, my day job is for a food processor that is an LLC. All of our loans (which add to about $45mil) are secured by both the business and the owners personal guarantees. The owners are required to supply our bank with personal financial statements as well as the business statements.

Hope this helps a little bit.