Can you form an LLC while in Chapter 13?
William Jenkins
Updated on February 07, 2026
Who Can File for Chapter 13 Bankruptcy? Only individuals can file for Chapter 13 bankruptcy. Business entities such as partnerships, corporations, or LLCs cannot do so. However, if you are a sole proprietor, you can file a personal Chapter 13 to reorganize your personal and business debts.
What can you not do when filing Chapter 7?
What Not To Do When Filing for Bankruptcy
- Lying about Your Assets.
- Not Consulting an Attorney.
- Giving Assets (Or Payments) To Family Members.
- Running Up Credit Card Debt.
- Taking on New Debt.
- Raiding The 401(k)
- Transferring Property to Family or Friends.
- Not Doing Your Research.
How to qualify for a small business credit card?
If you have good credit and a business that earns regular revenue, you are in prime position to qualify for a small business credit card. But don’t rush through the process, or you may face an unwarranted rejection. Take the time to organize and prepare your finances so you can answer important questions while applying.
Can a sole proprietorship get a business credit card?
Most small businesses in the United States don’t actually have a formal legal structure like a partnership, corporation or LLC. They’re sole proprietorships, meaning they are owned by a single individual who essentially “is” the business. Sole proprietors can qualify for business credit cards just like any other businesses.
When to apply for a business credit card?
When it’s time to get a business credit card, it can be too easy to just fill out an application and click on the “submit” button. Instead, you need to take the time to do some research, learn about how small business credit cards work, and find the one that’s right for your company’s needs.
Can a small business get a credit card with no credit history?
Another great reason to apply for small business credit cards with no credit history is to take advantage of the limited-time 0% Annual Percentage Rate (APR) offers. Loans and credit cards with low or no APR have much lower fees and monthly payments, which can lead to serious savings over time.
