How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada , Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4419
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
43581946
Type Your Finance Question Here...
Rakhi Vasavada is online now
A new question is answered every 9 seconds

I have a few credit cards that I use exclusively for my sole-prop.

Resolved Question:

I have a few credit cards that I use exclusively for my sole-prop. business purchases/expenses, and I owe about $40,000. Does this complicate things when I incorporate my business? Will this be considered debt capital?
Submitted: 4 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 4 years ago.

Dear Friend,

 

Well... not exactly. When you incorporate, the incorporated company takes on and assumed all assets and liabilities of the sole prop. business.

 

So, these $40,000 that are owed are debts and will be taken over as current liabilities and NOT debt capital.

 

I am sure this would help...

Warm Regards,

Rakhi Vasavada and 2 other Finance Specialists are ready to help you