gradydortch, Technically speaking if your company is or were to be a corporation, it becomes a viable entity that has the rights of an individual to seek and obtain its own financing. But with that said, someone has to be the fall guy for the corporation and guess what your it. The laws of incorporation were written to protect the assets of the individual from unfair seizure, while it does accomplish that, bankers have found a way around this protection. There lies the problem alot of banks insist that there be some type of personal gaurantee, something like a cosigner and that is where they get you because your personal assets are now securing the financing for corporation. Should the corporation fail, there goes everything. All this being said you are better off as a corporation because when it comes to litigation your personal assets are somewhat and in most cases protected.
Now with all that being said, I am not a lawyer nor do I claim to be one and I am speaking from my own personal understanding of Kansas Law and it may be somewhat different in your area. I would suggest that you seek out an attorney in your area that specializes in business law. I say this because Kansas and Texas both recognize an S corporation but in Ks it has a life expectency while in Texas it has none.
Let me explain one other thing there are two basic types of corporations. There is the S corporation which has the protection of the corporation and single taxation of a sole proprietorship. Then there is the C corporation which also has the protection of the corporation but pays taxes twice once as a corporation and then you pay taxes on the money you receive from the corporation. Then you can get into LLCs which are Limited Liability Companies and these are a whole drfferent can of worms.
The reason I am giving you so much information is that I want you to see that there is to much information for you to take just my word for it. Then the next thing I will tell you is, please go see your local SBDC (Small Business Development Center) (they are affiliated with most colleges), they are the business experts that will help you decide what is best for your company and then if you qualify they will refer you to the SBA (Small Business Administration), who can assist you in aranging financing.
Sorry, my fingers haven't said that much in a long time. And yes to those who are wondering if I am a college boy, the answer is, yes. It has been 9 long years and I will Graduate in Dec. with a Bachalor of Science in Business Management, but I have been going to the school of hard knocks for 47 years.