Menu X Menu
How may we help you?

1-800-345-2677

A Business Owner's Personal Credit Report
Companies Served Since 1981

A Business Owner's Personal Credit Report


By Amy Fountain Tuesday, December 20, 2011

Many Americans have suffered financial hardship under the current dismal economic conditions.  While the extent of the hardship ranges widely, some people who own a business find themselves in a precarious situation.  That is, they must decide whether to use the limited funds available to keep their business running, or to use the minimal resources for their personal expenses.

The decision how to manage the business and personal finances is completely up to each individual person and their unique situation.  We have found that some clients choose to sacrifice the upkeep of their business for the sake of maintaining their personal assets.  When this unfortunate choice has to be made, many clients ask if their personal credit will be affected by not paying their business bills.

An incorporated company that has the proper internal structure will typically have all of the company assets separate from the owner’s personal assets.  Therefore, generally if there is an adverse circumstance that affects the business, the owner’s assets are typically safely protected.

Companies that are incorporated in the State of Delaware are required to pay two annual fees every year to maintain their Good-Standing corporate status.  The first fee is the State of Delaware franchise tax and the second fee is for the registered agent service.  Clients with limited funds wonder if non-payment of either of these fees will show up on their personal credit report.

If the franchise tax fees are not paid, then the State of Delaware will put the company in a “non good-standing” status and impose late penalties with interest.  Failure to pay for two consecutive years will result in the company being voided. The Division of Corporations does NOT report non-payment to the credit agencies.

It is up to each individual registered agent as to how they proceed when payment is not received for their services.  At Harvard Business Services we do NOT report non-payments to the credit agencies but we do file a formal resignation with the State of Delaware so that we no longer are required to act as the Registered Agent.

If you find yourself in a similar situation, please feel free to contact our office to further discuss any available options.  We are glad to assist with any questions you may have and can be reached via telephone at 1-800-345-2677.

More By Amy Fountain

 

Comment Facebook Twitter Google Reddit LinkedIn

Leave a Comment

Name:

* Required

Email Address:

* Required, will not be published

Website: Comment:  
Secure Connection
X Secure & Confidential

Your personal information is encrypted by Secure Sockets Layer (SSL) software so that it cannot be read as the information travels over the Internet.

Trustpilot
X Our customers love us!
We have lots of great customer reviews.
Like our service? If you are one of our many satisfied customers, please let us know.
BBB A+ Rating
X A+ Rated BBB Accredited Business

Need more proof that we're the best? Check out our record!

100,000+ Companies Formed
X
165,057

Companies Formed Since 1981

Disclaimer: Harvard Business Services, Inc. is a document filing service that provides general information. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions. HBS is not affiliated with Harvard University.

© Copyright 1996-2017. All rights reserved.