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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4542
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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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: 5 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 5 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,

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