Sole Proprietor or Corporation

[Pacman]

I need to obtain a contract bond. Does it matter if I am a Sole Proprietor or a Corporation?

[PT]

Originally Posted by Pacman

I need to obtain a contract bond. Does it matter if I am a Sole Proprietor or a Corporation?

It really depends on what size contract bond you are looking for. If you are a new company - regardless of whether or not you are a corporation - a bond line would be based upon the personal credit of the owners of the company. As the company gets more established - it's probablay better to be a corporation to be able to get larger bond lines. This is because CPA prepared business financials are required for larger lines and are not usually prepared for sole proprietors.