Does a credit card in the LLC's name build credit?

[Jason Click]

Since I created an LLC, I've gotten alot of credit card offers for the LLC. If I apply for the credit card and use it, does it build credit for the LLC? What are the pros and cons here?

Thanks for the help!

[Richard Warren]

To build credit for an LLC credit cards will work IF they are in the name of the LLC. Many of these offers are really in your name. To build credit it must be under the tax ID number of the LLC. You can get cards from Home Depot, Lowe’s, Office Depot and other vendors. Many of these companies will issue the card in the name and tax ID number of the LLC, but they may expect you to provide a personal guarantee. If the purpose is to build credit, this can be a good way to go. You don’t need to start with a large credit line. Charging small items from time to time and paying them off will establish a payment history. Most banks and major lenders will require that the LLC be in existence for two years AND have a favorable credit history before extending any credit without personal guarantees.

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