I Hope I Did The Righf Thing
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Join Date: Sep 2015
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I Hope I Did The Righf Thing
Hi,
Me again. As you know, I'm in the process of divorcing my ah. We own a business together, which is very new, opened in Oct.
I found a place to move. I have been trying to refinance my car, so I can afford to live. Today, one of the lenders told me they were denying my refinance because I had too much revolving credit. I asked him to tell me what I had? To my horror, the corporate credit card was on my personal credit report. The amout owed was 8000.00. My other cards probably add up to about 1000.00 total, which, I have a little money put aside so I can pay them off. The lender told me to call the bank that issued the card, and see if it was a mistake.
I called the credit card, which is affiliated with a big bank. They informed me the girl that submitted the application had used the wrong one. She used a business solutions card, not a corporate card application. Told me there was nothing I could do, I was the primary on the card, so responsible for payment, not necessarily the LLC. I closed the account. I called my ah, told him, the situation, that I'm not going to be able to move with that on my credit. He wasn't real concerned, stated get me the credit card statement, and he'd see what he could do.
Knowing his history, and his not really caring for me, I paid the full balance from our corporate checking account.
I was very worried that this wouldn't be a priority for him, so when my ah got around to it he might pay a 1000.00 dollars here and there.
All that was purchased on that card, I never used mine, my ah used his, was supplies and inventory for the business, and my ah put booze and gas and cigarettes on it. He hasn't done that in about a month, but he did it on December.
I'm hoping I did the right thing. I was trying to protect myself and my credit. My credit will probably be going in the toilet, but I was afraid about having that money on my credit.
Eventually, my ah will buy me out of the business, but at least now the account is closed, paid off. My ah can open a corporate account on his own.
I just need some opinions form everyone. Did I do the right thing??
Me again. As you know, I'm in the process of divorcing my ah. We own a business together, which is very new, opened in Oct.
I found a place to move. I have been trying to refinance my car, so I can afford to live. Today, one of the lenders told me they were denying my refinance because I had too much revolving credit. I asked him to tell me what I had? To my horror, the corporate credit card was on my personal credit report. The amout owed was 8000.00. My other cards probably add up to about 1000.00 total, which, I have a little money put aside so I can pay them off. The lender told me to call the bank that issued the card, and see if it was a mistake.
I called the credit card, which is affiliated with a big bank. They informed me the girl that submitted the application had used the wrong one. She used a business solutions card, not a corporate card application. Told me there was nothing I could do, I was the primary on the card, so responsible for payment, not necessarily the LLC. I closed the account. I called my ah, told him, the situation, that I'm not going to be able to move with that on my credit. He wasn't real concerned, stated get me the credit card statement, and he'd see what he could do.
Knowing his history, and his not really caring for me, I paid the full balance from our corporate checking account.
I was very worried that this wouldn't be a priority for him, so when my ah got around to it he might pay a 1000.00 dollars here and there.
All that was purchased on that card, I never used mine, my ah used his, was supplies and inventory for the business, and my ah put booze and gas and cigarettes on it. He hasn't done that in about a month, but he did it on December.
I'm hoping I did the right thing. I was trying to protect myself and my credit. My credit will probably be going in the toilet, but I was afraid about having that money on my credit.
Eventually, my ah will buy me out of the business, but at least now the account is closed, paid off. My ah can open a corporate account on his own.
I just need some opinions form everyone. Did I do the right thing??
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Join Date: May 2012
Location: Florida
Posts: 6,780
I did the exact same thing years ago Z. Right or wrong, I had to move him & his business off of my credit because I had ZERO control over him handling it responsibly. It really saved my butt because his spending got way out of control and separating myself from his corporate debt is what has allowed me to keep moving forward.
Really, all I did was separate myself from his consequences, right?
Really, all I did was separate myself from his consequences, right?
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Join Date: Jun 2014
Location: East Coast USA
Posts: 5,700
I'm not an attorney, but I think you did the right thing. I also am a business owner and was once professionally counseled that by comingling business and personal expenses, which is what you've done, the IRS if they want to is can expand the scope of an audit to look at both your personal and business returns. Even if it's still true, given the odds of getting audited, the gravity of the situation, and from the IRS' point of view a relatively small amount of money involved I think you'll be just fine.
In general the more documentation you have the better and while I don't know what type of business you have for the most part business expenses, even for office supplies, are far different than for personal use. Cigarettes, etc. are another story, but your worst case scenario will be okay. The girl that submitted the application, was she an employee of yours? If so, to the extent that you can get a statement from here stating that, for whatever reason, she filled out the wrong application, would in no manner hurt should questions arise.
Again, I'm not a tax professional by any stretch of the imagination, just sharing some of my experience to ease your worries. Lastly, I would also suggest that assuming the business and/or you have professional tax help to contact them, explain the situation, and ask for guidance.
I wish you well.
In general the more documentation you have the better and while I don't know what type of business you have for the most part business expenses, even for office supplies, are far different than for personal use. Cigarettes, etc. are another story, but your worst case scenario will be okay. The girl that submitted the application, was she an employee of yours? If so, to the extent that you can get a statement from here stating that, for whatever reason, she filled out the wrong application, would in no manner hurt should questions arise.
Again, I'm not a tax professional by any stretch of the imagination, just sharing some of my experience to ease your worries. Lastly, I would also suggest that assuming the business and/or you have professional tax help to contact them, explain the situation, and ask for guidance.
I wish you well.
A work in progress
Join Date: Jul 2010
Location: South Jersey
Posts: 16,633
This is something to discuss with your divorce lawyer. Why didn't you do that before you paid it?
Make sure your lawyer KNOWS all the details--it can probably be factored in when you do the property division--what's yours, what's his, and what's the business's debt (that you paid out of personal funds). Is the account now CLOSED? So no further charges can be put on it? Simply paying it off doesn't close the account, as you probably know.
Make sure your lawyer KNOWS all the details--it can probably be factored in when you do the property division--what's yours, what's his, and what's the business's debt (that you paid out of personal funds). Is the account now CLOSED? So no further charges can be put on it? Simply paying it off doesn't close the account, as you probably know.
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Thread Starter
Join Date: Sep 2015
Posts: 299
Hi,
I was under the impression that the account opened was a corporate credit card. That's what we were told. Nothing but business expenses were put on that card. Actually, I never used the card m, only my ah did. So inventory for the business was put on it. I became aware in December, my ah was using it for gas, booze and cigarettes.
I only found out by accident when my credit was being pulled today, that this card showed up on my personal credit report.
When calling the bank, they told me, it was a business solutions card, not a corporate card, and was in my name only, and my ah was a signer. That I would be responsible for the debt.
Since my ah really didn't take this seriously, and he'd think about paying it off, I knew I had to do something to try and save my credit and help me refinance my car.
I closed the account, but paid the balance with the money from the corporate checking account. All the charges on the card, are from the business, except my ah charges, which he needs to explain.
I don't think I did anything wrong. I didn't take any money to pay anything for me, it was all got the business, that shouldn't have been on me personally.
I was afraid of waiting for my ah to fix it, which he wouldn't, and there being new charges.
Having this sizable sum on my credit is jeopardizing my chances of moving on in my life.
Does this make sense. I hope I didn't do anything wrong.?
I was under the impression that the account opened was a corporate credit card. That's what we were told. Nothing but business expenses were put on that card. Actually, I never used the card m, only my ah did. So inventory for the business was put on it. I became aware in December, my ah was using it for gas, booze and cigarettes.
I only found out by accident when my credit was being pulled today, that this card showed up on my personal credit report.
When calling the bank, they told me, it was a business solutions card, not a corporate card, and was in my name only, and my ah was a signer. That I would be responsible for the debt.
Since my ah really didn't take this seriously, and he'd think about paying it off, I knew I had to do something to try and save my credit and help me refinance my car.
I closed the account, but paid the balance with the money from the corporate checking account. All the charges on the card, are from the business, except my ah charges, which he needs to explain.
I don't think I did anything wrong. I didn't take any money to pay anything for me, it was all got the business, that shouldn't have been on me personally.
I was afraid of waiting for my ah to fix it, which he wouldn't, and there being new charges.
Having this sizable sum on my credit is jeopardizing my chances of moving on in my life.
Does this make sense. I hope I didn't do anything wrong.?
A work in progress
Join Date: Jul 2010
Location: South Jersey
Posts: 16,633
Discuss it with your lawyer. None of us can tell you whether it's a problem or not. Either way, the sooner you talk to your lawyer, the less of a problem it will be. You can't undo the payment at this point, but sometimes there are actions the lawyer can take re the divorce that will minimize any otherwise negative consequences.
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Join Date: Dec 2015
Posts: 214
I agree talk to an attorney in your state. If Im understanding correctly, in technical terms you wrote a corporate check to pay off what might be considered your personal credit card and expenses.. Even if charges were for the business, this could make for a debatable situation if your ex wants to make an issue of it during divorce. He didnt appear upset, maybe he wont care.
A work in progress
Join Date: Jul 2010
Location: South Jersey
Posts: 16,633
Oh, geeze, I missed that part. All the more reason to discuss with your lawyer. It doesn't sound to me like you did anything illegal (unless you forged his name on the check or you weren't authorized to write the check--which doesn't sound like is the case here), so I wouldn't worry too much about that. Still, the business is part of the marital assets, so you do need to let your lawyer know ASAP.
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Location: Starting over all over again
Posts: 4,426
Here's my .02, based on my own experience with my own companies during my divorce.
If I may suggest that in addition to a divorce attorney you may also want to see a tax attorney. Splitting assests when there is a corporation involved is no different than any other asset, it's the tax consequences that can get tangled up.
I concur. A corporation cannot do that without the IRS getting all in a knot.
What a corporation _can_ do is provide a _bonus_ to any employee for whatever reason. This bonus has to be properly documented in the corporate minutes. If there was incorrect assignment of payments to debts, which is what seems to have originally happened, then the corporation can _document_ that error and that the bonus is how the corporation chose to correct the error. With such documentation there is nothing in hiding and the IRS can't complain.
All the costs involved in settling the corporate issue for a divorce, such as the tax attorney, are expenses to the corporation.
The ownership of the corporation is an asset, so you can use it as a negotiating point. You can offer to buy him out for a dollar, and you then handle all the taxes. Or you can let him buy _you_ out for a dollar, but he gets stuck with all the taxes. The trick is you need to know what the tax consequences are in order to know what is best for you.
I don't know what line of work your corporation is in, so this may not apply. With small companies one of the most valuable corporate assets is called "customer good will". Which means that the customers are partial to the _people_ in the corporation and not the corporation itself. The classic example is a family owned restaurant. People go because they like the chef, not the restaurant.
Putting a dollar value on "good will" is simply not possible, although there are a host of consultants who will charge a ton of money to do that. In terms of your divorce you can evualate how much your personal contact with your customers really means to your livelihood. If you are a chef, for example, you could hand over the entire restaurant to your AH, open a new restaurant 2 blocks down the street and you will be just fine.
Mike
If I may suggest that in addition to a divorce attorney you may also want to see a tax attorney. Splitting assests when there is a corporation involved is no different than any other asset, it's the tax consequences that can get tangled up.
Originally Posted by AnonWife 
...in technical terms you wrote a corporate check to pay off what might be considered your personal credit card and expenses.. ...
What a corporation _can_ do is provide a _bonus_ to any employee for whatever reason. This bonus has to be properly documented in the corporate minutes. If there was incorrect assignment of payments to debts, which is what seems to have originally happened, then the corporation can _document_ that error and that the bonus is how the corporation chose to correct the error. With such documentation there is nothing in hiding and the IRS can't complain.
All the costs involved in settling the corporate issue for a divorce, such as the tax attorney, are expenses to the corporation.
The ownership of the corporation is an asset, so you can use it as a negotiating point. You can offer to buy him out for a dollar, and you then handle all the taxes. Or you can let him buy _you_ out for a dollar, but he gets stuck with all the taxes. The trick is you need to know what the tax consequences are in order to know what is best for you.
I don't know what line of work your corporation is in, so this may not apply. With small companies one of the most valuable corporate assets is called "customer good will". Which means that the customers are partial to the _people_ in the corporation and not the corporation itself. The classic example is a family owned restaurant. People go because they like the chef, not the restaurant.
Putting a dollar value on "good will" is simply not possible, although there are a host of consultants who will charge a ton of money to do that. In terms of your divorce you can evualate how much your personal contact with your customers really means to your livelihood. If you are a chef, for example, you could hand over the entire restaurant to your AH, open a new restaurant 2 blocks down the street and you will be just fine.
Mike
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Join Date: Sep 2015
Posts: 299
Hi,
What happened was it was supposed to be a corporate credit card. Until today, when I found out it was on my credit report, that is what both my ah and I assumed. It was called a business solutions credit card. I guess, the lady at the bank, submitted the wrong application, even though we asked for a corporate card, so it would be tied to the LLC, not out personal credit.
Again, it had the company's name on it, then underneath that was my name on my card and my ah, on his card. I've never had a corporate credit card, so thought that's how it was done.
All charges on the card, were business charges, except when my ah used it for his addiction and gas. I never even used my card.
I never would have know that it wasn't a corporate card unless I was trying to move my life forward, and had my credit pulled today.
When I called the bank they confirmed this with me, and it was in my name, issued to me, and my ah was also a signer.
My ah, was surprised that it wasn't a corporate card, understood the lady at the bank made a mistake, but wasn't in any hurry to fix anything for me so the debt would be off my personal credit.
Since all the debt in the card was business related barring my ah purchases, which he can deal with, I paid the balance with a check from our corporate checking account. This is what I had been using to pay the charges monthly.
I was worried my ah wouldn't feel it was necessary to pay the whole balance, because frankly he could care less about my credit.
I don't think I did anything wrong. Instead of just making my monthly payment from the corporate account of let's say 1000.00, I chose to pay the balance off, and close the account to protect my credit.
The balance needed to be paid at some point, and it would have been paid from tge business checking account., I just paid all of it. I also am still legally part owner of the business, have access to the checking account to pay bills.
That will change as soon as the divorce is settled.
I frankly didn't trust my ah, to care enough about my personal credit to pay nothing more than the minimum amout due.
I'm the one moving, so couldnt wait for him to pay the minimum payment, if I closed the account. It could take at that rate, maybe being paid off in over a year. Then what if the business happened to go under, even though everything on the card was business expenses , I still be responsible for the debt, not the LLC.
I just hope I did the right thing!! I just so don't trust my ah to do anything to fix this situation, since it had to deal with me the b---h!!!!
What happened was it was supposed to be a corporate credit card. Until today, when I found out it was on my credit report, that is what both my ah and I assumed. It was called a business solutions credit card. I guess, the lady at the bank, submitted the wrong application, even though we asked for a corporate card, so it would be tied to the LLC, not out personal credit.
Again, it had the company's name on it, then underneath that was my name on my card and my ah, on his card. I've never had a corporate credit card, so thought that's how it was done.
All charges on the card, were business charges, except when my ah used it for his addiction and gas. I never even used my card.
I never would have know that it wasn't a corporate card unless I was trying to move my life forward, and had my credit pulled today.
When I called the bank they confirmed this with me, and it was in my name, issued to me, and my ah was also a signer.
My ah, was surprised that it wasn't a corporate card, understood the lady at the bank made a mistake, but wasn't in any hurry to fix anything for me so the debt would be off my personal credit.
Since all the debt in the card was business related barring my ah purchases, which he can deal with, I paid the balance with a check from our corporate checking account. This is what I had been using to pay the charges monthly.
I was worried my ah wouldn't feel it was necessary to pay the whole balance, because frankly he could care less about my credit.
I don't think I did anything wrong. Instead of just making my monthly payment from the corporate account of let's say 1000.00, I chose to pay the balance off, and close the account to protect my credit.
The balance needed to be paid at some point, and it would have been paid from tge business checking account., I just paid all of it. I also am still legally part owner of the business, have access to the checking account to pay bills.
That will change as soon as the divorce is settled.
I frankly didn't trust my ah, to care enough about my personal credit to pay nothing more than the minimum amout due.
I'm the one moving, so couldnt wait for him to pay the minimum payment, if I closed the account. It could take at that rate, maybe being paid off in over a year. Then what if the business happened to go under, even though everything on the card was business expenses , I still be responsible for the debt, not the LLC.
I just hope I did the right thing!! I just so don't trust my ah to do anything to fix this situation, since it had to deal with me the b---h!!!!
Sober since 10th April 2012
Join Date: Apr 2012
Location: Perth, Western Australia
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Hi Zircon, I understand your logic, and I hope it works out on the legal side as well. You are going all out to protect your personal financial welfare, but getting legal advice first will probably be the safer option.
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Thread Starter
Join Date: Sep 2015
Posts: 299
Hi,
Just me again. I wouldn't t never do anything dishonest. Not me. I was willing to try and work things out with my ah, but he no longer wants any part of me. He's unwilling to get counseling or even consider quitting drinking. I don't see him, but, it appears from reports he has toned down his drinking a bit. How long that will last, who knows. Doesn't matter, my ah has thrown me away, like a piece of trash. I read that post on narcissistic people, abd it could be him.
Anyways, to get back to the credit card. It was a business credit card, just not the corporate credit card we asked for. Instead of I guess being secured by the LLC, ir maybe protected by the LLC., it was secured in my name. I wasn't aware of this until yesterday, when I had my credit pulled.
Since tge business opened, this card was used to purchase inventory, except my ah for his addiction for a short period of time. I actually never used my card. All payments I made to this credit card was from our corporate checking account.
I got really nervous when I found out it was secured by my credit, abd not the LLC, not sure I'm understanding that right.
I was due to make my payment this month, with the corporate checking account. So instead of making a payment of let say 2000.00, I paid the balance off, abd closed the account. Only difference is, I paid it in full.
I'm praying I didn't do anything wrong. My ah doesn't know I paid the balance in full. It doesn't matter, I'm on tge corporate checking account. I didn't use the funds to pay for anything personal for me. It was all business.
I couldn't take the risk, that my ah, would do something so the balance on that business card would be carried over month to month. Maybe no new charges, but 8000.00 is a lot of money, and would effect my credit.
I have called my lawyer, no call back. I'm petrified as to how my ah will react when he finds out I paid off tge balance, even though I had every legal right to do it, even if it had been a corporate credit card, I could have elected to pay off the whole balance. Of course, I wouldn't have since it would take away from our money.
I'm so worried, I might have done something wrong. The girl at the bank doesn't realize yet what a mess she has made of my life, for one stupid mistake. I'll tell her on Monday , but it doesn't help me this weekend.
Thank you for listening. As you can see, I'm very nervous and worried !!
Just me again. I wouldn't t never do anything dishonest. Not me. I was willing to try and work things out with my ah, but he no longer wants any part of me. He's unwilling to get counseling or even consider quitting drinking. I don't see him, but, it appears from reports he has toned down his drinking a bit. How long that will last, who knows. Doesn't matter, my ah has thrown me away, like a piece of trash. I read that post on narcissistic people, abd it could be him.
Anyways, to get back to the credit card. It was a business credit card, just not the corporate credit card we asked for. Instead of I guess being secured by the LLC, ir maybe protected by the LLC., it was secured in my name. I wasn't aware of this until yesterday, when I had my credit pulled.
Since tge business opened, this card was used to purchase inventory, except my ah for his addiction for a short period of time. I actually never used my card. All payments I made to this credit card was from our corporate checking account.
I got really nervous when I found out it was secured by my credit, abd not the LLC, not sure I'm understanding that right.
I was due to make my payment this month, with the corporate checking account. So instead of making a payment of let say 2000.00, I paid the balance off, abd closed the account. Only difference is, I paid it in full.
I'm praying I didn't do anything wrong. My ah doesn't know I paid the balance in full. It doesn't matter, I'm on tge corporate checking account. I didn't use the funds to pay for anything personal for me. It was all business.
I couldn't take the risk, that my ah, would do something so the balance on that business card would be carried over month to month. Maybe no new charges, but 8000.00 is a lot of money, and would effect my credit.
I have called my lawyer, no call back. I'm petrified as to how my ah will react when he finds out I paid off tge balance, even though I had every legal right to do it, even if it had been a corporate credit card, I could have elected to pay off the whole balance. Of course, I wouldn't have since it would take away from our money.
I'm so worried, I might have done something wrong. The girl at the bank doesn't realize yet what a mess she has made of my life, for one stupid mistake. I'll tell her on Monday , but it doesn't help me this weekend.
Thank you for listening. As you can see, I'm very nervous and worried !!
Member
Join Date: Oct 2013
Posts: 11,426
I get it--don't worry for what is done Zircon--wait for the lawyer to call
back and keep other plans moving forward.
the good news is that will show up on your FICO score pretty quickly
and perhaps you can get a place and move sooner than later.
I certainly agree he won't care about your credit, and you
were just trying to protect yourself.
Have you started packing / purging your stuff?
That could be a positive, proactive distraction to keep the ball rolling
forward towards your new, addict-free life. . .
What's done
back and keep other plans moving forward.
the good news is that will show up on your FICO score pretty quickly
and perhaps you can get a place and move sooner than later.
I certainly agree he won't care about your credit, and you
were just trying to protect yourself.
Have you started packing / purging your stuff?
That could be a positive, proactive distraction to keep the ball rolling
forward towards your new, addict-free life. . .
What's done
Member
Join Date: Sep 2012
Location: atlanta, ga
Posts: 3,581
Zircon - I also own a business which is an LLC. I don't think you have a problem if you have done a couple of things. First, most corporate cards are tied to a personal SS#. They can be tied to only and EIN, but since your business is new I doubt that would fly so don't worry about the kind of card that you have.
Business expense reimbursement is just a matter of documentation. If you were to use a Debit card from your personal account you can receive reimbursement for a business expense - this is very normal as many large corporations have moved from using corporate issued business cards.
What you need to do is have a business expense report for every month that card has been opened. It would be best to have every receipt as well. If you don't, list the expense out anyway. Total the amount, Staple the receipts to the report and list the check number you used reimburse the expense. The issue you have is that there were personal charges on the card that you reimbursed for. Its not an issue that there were personal charges made. You need to add up the personal expenses, list it on a report, then reimburse the company back the amount of personal expenses, or if you can, get AH to.
I am hoping what you didn't do is write the $8k check to yourself, then pay the credit card company out of your personal account. It doesn't sound like you did - but if you did then it looks like you took a payroll payment, dividend/distribution or bonus. Those are taxable wages and that could be an issue tax wise for you - it doesn't matter that you did pay the card company with it. If you did that you need to consult with your business accountant ASAP and see what you can do about it.
As the others have advised you should get with an attorney and accountant and start figuring out how this is all going to be handled. I think it was wise to pay it off, and no I don't think you did anything wrong that can't be fixed (reimbursing the company back for personal expenses).
Business expense reimbursement is just a matter of documentation. If you were to use a Debit card from your personal account you can receive reimbursement for a business expense - this is very normal as many large corporations have moved from using corporate issued business cards.
What you need to do is have a business expense report for every month that card has been opened. It would be best to have every receipt as well. If you don't, list the expense out anyway. Total the amount, Staple the receipts to the report and list the check number you used reimburse the expense. The issue you have is that there were personal charges on the card that you reimbursed for. Its not an issue that there were personal charges made. You need to add up the personal expenses, list it on a report, then reimburse the company back the amount of personal expenses, or if you can, get AH to.
I am hoping what you didn't do is write the $8k check to yourself, then pay the credit card company out of your personal account. It doesn't sound like you did - but if you did then it looks like you took a payroll payment, dividend/distribution or bonus. Those are taxable wages and that could be an issue tax wise for you - it doesn't matter that you did pay the card company with it. If you did that you need to consult with your business accountant ASAP and see what you can do about it.
As the others have advised you should get with an attorney and accountant and start figuring out how this is all going to be handled. I think it was wise to pay it off, and no I don't think you did anything wrong that can't be fixed (reimbursing the company back for personal expenses).
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Join Date: Sep 2012
Location: atlanta, ga
Posts: 3,581
Anyways, to get back to the credit card. It was a business credit card, just not the corporate credit card we asked for. Instead of I guess being secured by the LLC, ir maybe protected by the LLC., it was secured in my name. I wasn't aware of this until yesterday, when I had my credit pulled.
I got really nervous when I found out it was secured by my credit, abd not the LLC, not sure I'm understanding that right.
I touched on this in my post. Now a days banks are unlikely to issue credit cards solely using an EIN. As a new business highly unlikely (I'd say zero chance). My AMEX business card is tied to both business EIN and my personal SS#. If the LLC went belly up they can still collect from me. It wasn't always that way I do remember being giving a corporate card when I worked for my past employer that was just a matter for them asking for it from the bank in my name without my SS#. That was circa 2000. Many people I know that work for companies have to fill out applications for corporate cards using their SS# rather than just being issued a card with the biz EIN. This protects the business itself from a employee using a corporate card for personal purchases, and then having to cover those purchases if an employee were to fail to make payment or quit. Most of the time now employees are required to cover business expenses out of their own pocket and then be reimbursed! Companies and banks just aren't willing to risk getting stuck with personal charges or corporate bankruptcies after the recession when there were so many. I'm sorry that wasn't explained to you by the bank person.
Bottom line is you always made payment, the card has been paid off and closed. Your credit score should go up now.
I got really nervous when I found out it was secured by my credit, abd not the LLC, not sure I'm understanding that right.
I touched on this in my post. Now a days banks are unlikely to issue credit cards solely using an EIN. As a new business highly unlikely (I'd say zero chance). My AMEX business card is tied to both business EIN and my personal SS#. If the LLC went belly up they can still collect from me. It wasn't always that way I do remember being giving a corporate card when I worked for my past employer that was just a matter for them asking for it from the bank in my name without my SS#. That was circa 2000. Many people I know that work for companies have to fill out applications for corporate cards using their SS# rather than just being issued a card with the biz EIN. This protects the business itself from a employee using a corporate card for personal purchases, and then having to cover those purchases if an employee were to fail to make payment or quit. Most of the time now employees are required to cover business expenses out of their own pocket and then be reimbursed! Companies and banks just aren't willing to risk getting stuck with personal charges or corporate bankruptcies after the recession when there were so many. I'm sorry that wasn't explained to you by the bank person.
Bottom line is you always made payment, the card has been paid off and closed. Your credit score should go up now.
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Join Date: Jul 2004
Location: Starting over all over again
Posts: 4,426
Originally Posted by Zircon
... I'm so worried, I might have done something wrong. ...
Now you know. Now you can go talk to some lawyers,or tax advisers, who can advise you as to which paperwork you need to put together to keep in your records.
The _only_ thing you need to worry about is being careful about which way you do the paperwork so you do not get stuck with a lot of taxes... and so you are protected in case your AH gets himself into a tantrum and starts acting like "king baby."
Mike
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Join Date: Nov 2012
Posts: 786
I'd have done exactly the same thing. Sharing a business that may have tax issues because of its reimbursements is way better that solely having a credit card in your name with a huge balance.
There may be some headaches, but at least they're HIS headaches too now. That makes it more likely to resolve.
Seems a little convenient that it was just your SSN and not each of yours on your own cards.
There may be some headaches, but at least they're HIS headaches too now. That makes it more likely to resolve.
Seems a little convenient that it was just your SSN and not each of yours on your own cards.
Sober since 10th April 2012
Join Date: Apr 2012
Location: Perth, Western Australia
Posts: 6,047
Zircon you had good reason to be worried about that card; I would have been too, especially with AH having already misused it.
You didn't act dishonestly and I hope nothing comes of it.
You didn't act dishonestly and I hope nothing comes of it.
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