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So, you would like to establish business credit lines without using your personal guarantee? Then you need to turn your small business into a corporation. This does not have to be difficult or complicated, provided you know what to do.
When you are ready to incorporate, the first thing you need to do is decide on a name for your new corporation. You will then need to check with your state’s corporate filing office as well as the federal and state trademark registers to make sure that the name you have chosen is not already in use. If it is available, then you will need to get the necessary form from the state’s corporate filing office and complete it. This form is usually called the Articles of Incorporation. You will need to include information about the purpose of your business, where it typically does business, and the information about the stock your business offers when completing this form.
Once you have this document filled in and filed with the state’s corporate filing office, you will need to create Corporate By laws. While you will file the Articles of Corporation with the state, you will keep the Corporate Bylaws to refer to with your shareholders and board of directors.
Once all the paperwork is in order, you will want to hold the first Board of Director’s Organizational Meeting for your new corporation. You will elect the officers at this first meting. Your board will likely include a president, secretary, and treasurer as officers. The law requires that you keep minutes of this first meeting. Once you have held this meeting and organized your business, you are ready to issue the stock that you outlined in the Articles of Corporation.
While that may sound like a lot of work, and in many ways it is, there are significant benefits to incorporating your business. First, it allows your business to operate outside of your personal finances. In other words, you can apply for loans and other forms of credit without your personal guarantee. This means that your business’s creditors cannot seize your personal property if you should have trouble paying your debts.
A corporation can outlive its founder. Because the corporation is owned by shareholders, it can continue even if the president or founder dies or moves on to a new business. This makes a corporation and enduring business structure. Also, lenders tend to prefer to lend money to corporations, which means it will be easier to raise money when needed if you go through the work of incorporating.
Of course, one of the biggest reasons to consider incorporating is the tax benefits you can have. Many forms of insurance become tax deductible when you incorporate. Travel and entertainment can even be deducted when handled properly. Because the corporation is separate from you and has a life of its own, many more things are tax deductible than they would be in a sole proprietorship situation. If your business is growing and you are looking to take that next step, consider incorporating.
When you are ready to incorporate 
establish business credit lines without using your personal guarantee 
federal and state trademark registers 
turn your small business into a corporation 
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Business Builder 
