Liabilities not in company's name

[Gretel]

I am following up on another post (sorry I posted my question right in it), which reminded my of a question that keeps bothering me.

It happens quite frequently that small companies (Corporations and LLC's) don't get or don't get enough credit in the companies name, even though it should be the companies liability.

Is there any good way to deal with this issue and have legitimate liabilities on the books? For example: Credit Card debt. An owner's/shareholder's loan would not work since the credit card is used frequently.

[winnie]

shareholder loan

The shareholder can loan the money to the corporation (using the credit card or bank to finance that loan to the company). The reality for me is that I spend a few years getting a new corporation or LLC in shape as far as the debt goes. The accountant is to often the last to know! The company should be able to borrow money if the owner will personally guarantee it. Same difference to the bank or credit card company, now the debt is in the company name. Be careful with LLC's in particular, since it seems common for a client to buy real estate personally, mortgage the real estate personally and then form an LLC to "own" the property and mortgage. The LLC does neither until the paperwork transfers title and you have a change in the mortgage. Far better for the LLC to purchase and borrow initially with that personal guarantee. Ask your client how they can have liability protection with an LLC if the LLC doesn't own anything!?