Hello! I will preface this by saying I am not looking for tax advice, just any personal experience. I have an excellent accountant who I am in regular contact with.
I am a new business owner (about 2 years and a couple of months). I am looking to purchase a vehicle over 6,000 pounds to use for work (I have many meetings, drops, presentations am driving to and from all day long throughout the work day not including the travel I do around the state for work). I will be keeping my current smaller car for personal use, so the new car would be 100% business.
My scorp has been active for those 2 years and 2 months, however I am clueless when it comes to business credit scores, so I don’t have any credit cards or loans under my business. I’m not sure how to check my score but I can’t imagine I even have one without any credit? Let me know if I’m wrong.
I went and test drove a rivian r1s today and gave them my EIN to secure financing. I am aware I will likely need to personally co-sign. We technically have the cash to buy out-right but would prefer to finance for a little bit.
My question is, since I will be co-signing for my business, does my business credit score matter all that much? My DTI is very low and we are grossing about 900k this year. Car purchase around 100k.
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Get the vehicle and loan in your business’s name. You’re right about the personal guarantee, probably. Also, start opening credit accounts for supplies, etc with places that report them to the business credit agencies. That’ll help start building credit for your company. Good luck!
They will probably completely disregard your business credit score. You are correct that you will be personally guarantee/personally co-signing the loan. If you want to build up your business credit, get a business credit card, earn some cashback and pay it off every month.