How to Establish Business Credit for Your Business
Decide how you want to structure your business., Obtain an employer identification number (EIN)., Open a separate bank account under the exact legal name of the business. , Business address and telephone number must be listed under the business name...
Step-by-Step Guide
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Step 1: Decide how you want to structure your business.
This may take some research but a few common ways to structure a business are:
C-Corporation; S-Corporation; Sole-Proprietorship; Limited Liability and Partnerships.
For business credit separate from your personal credit you will need to structure your business as a Corporation or LLC. -
Step 2: Obtain an employer identification number (EIN).
Business credit is tracked using your business name, business address and employer identification number.
You may obtain an EIN from the IRS online. (www.irs.gov).
The application is real simple and takes about 5 minutes.
As a sole proprietor you may apply or if you are a corporation any officer may apply. ,,,,, Dun and Bradstreet is the largest tracker of business credit. , As you begin to establish business credit it is imperative that you pay your invoices before the grace period.
A Paydex Score of 80 is considered very good and is based on your payment history with at least five (5) vendors. , -
Step 3: Open a separate bank account under the exact legal name of the business.
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Step 4: Business address and telephone number must be listed under the business name in the 411 directory and the telephone must be answered in your business name.
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Step 5: Obtain required business license
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Step 6: permits
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Step 7: registrations
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Step 8: in the City or Jurisdiction where you do business.
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Step 9: Technically
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Step 10: at this point you are ready to establish business credit with some vendors
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Step 11: Establish a profile with Dun and Bradstreet and obtain a D-U-N-S Number.
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Step 12: Now that you have received your D-U-N-S number you are prepared to apply for business credit.
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Step 13: After completing the process you may want to apply to companies with no personal guarantee required.
Detailed Guide
This may take some research but a few common ways to structure a business are:
C-Corporation; S-Corporation; Sole-Proprietorship; Limited Liability and Partnerships.
For business credit separate from your personal credit you will need to structure your business as a Corporation or LLC.
Business credit is tracked using your business name, business address and employer identification number.
You may obtain an EIN from the IRS online. (www.irs.gov).
The application is real simple and takes about 5 minutes.
As a sole proprietor you may apply or if you are a corporation any officer may apply. ,,,,, Dun and Bradstreet is the largest tracker of business credit. , As you begin to establish business credit it is imperative that you pay your invoices before the grace period.
A Paydex Score of 80 is considered very good and is based on your payment history with at least five (5) vendors. ,
About the Author
Melissa Wilson
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