Another reason to establish a Business Credit Profile is that it provides for a separation of funds and assets from your person, maintaining the corporate form. This separation is essential for a few reasons.

First and foremost, it helps to limit your personal liability by ensuring that no company funds (nor debts) are co-mingled with personal funds.  If the company and corporate credit profile is managed properly, it is very difficult for creditors to “pierce the corporate veil” when it comes to pursuing the company for outstanding debts.  You will have maintained the integrity of your corporation’s separate legal entity status, and will have limited substantially any direct, personal liability. This has a massive impact on personal assets as they are effectively shielded because the debts and liabilities were incurred by the corporation, not an individual.

The very tenet of establishing a corporation is to separate the owner(s) from risk and mitigating liability.  Using your own credit profile will negate the legal separate entity status of your corporation, thereby opening you up personally against any lawsuits aimed at your company.  Much like the co-mingling of funds, using your personal credit profile or personal assets to guarantee loans will make you fair game for potential collections or liability suits from banks and various other creditors.  This also holds true for tax or regulatory agencies; any type of personal loan guarantees by the owner of a corporation for corporate debt or credit will be seen as an abandonment of the corporate form - this can have serious tax implications that can directly impact your wallet.