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Sat, 17 May 2025 10:56:26 -0700
marlon from private IP, post #15572496

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client questions sch.C change into S-corp



3) Would I have to change my company credit card bills to the S-corp/inc name? Can the credit card companies I have credit cards with ask me to pay my balances
in full because of the change to an S-corp/inc? If they request I pay my credit card balances in full that would leave me with zero money to my name & I
realistically couldn't even pay them all off in full if wanted to because I don't have all of that cash. 



Sat, 17 May 2025 13:21:38 -0700
whiteguyinchina from private IP
Reply #18126838

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So can't they get an accountable plan and get reimbursed by s Corp for expenses

So don't need to change credit card

But wow cash flow is tight seems they are staying alive with credit card balances


Sat, 17 May 2025 13:43:01 -0700
marlon from private IP
Reply #17856165

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no, the owner has several credit cards, he uses them for all biz expenses.
accountable plan is for employees, there are none. 
there is no S corp yet, he's a sch.C.  
The IRS goes after sch.Cs a lot, i'm worried.


Sun, 18 May 2025 04:09:23 -0700
2tierreality from private IP
Reply #19952089

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Probably need to run both entities in parallel until that credit card debt is paid off. Can you you just aggregate the debt from all of the cards and then have
him sign a private line of credit or note payable to the old schedule C entity, so it gets repaid "on paper" whenever he pays that via tge s-corp revenue? 

Or, just open new cards in the name of the s-corp and do balance transfers?


Sun, 18 May 2025 09:30:25 -0700
whiteguyinchina from private IP
Reply #18425395

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Once he is a s Corp he will also be employee even if sole employee, he will need to earn a salary 

So can't he get the accountable plan as s Corp

If he is schedule c then he can keep the cards as is isn't that right
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