Step 1 – Choose the Right Business Structure
To make your business a distinct legal entity requires that you select a business structure such as an LLC, LLP or corporation. Remember, sole proprietorships do not create a separate business entity. Click Here to Start To Do It Yourself
or Click Here to Have Us Do It for You.
Step 2 – Obtain a Federal Tax ID Number (EIN)
You can apply for a federal tax ID for free using the IRS assistance tool. This is a nine-digit number assigned to your company which you will use for things such as filing company tax returns, opening a business bank account, applying for licenses and permits, and applying for business credit.
Step 3 – Open a Business Bank Account
Once you have your federal tax ID, you’ll want to open a new business bank account for your company. This is a mandatory step in creating a clear separation between your business and personal expenses.
Step 4 – Establish Credit with Vendors/Suppliers Who Report
One of the fastest and easiest ways to build business credit is to apply for net terms with vendors and suppliers. However, if your goal is to have $250,000 to $500,000 in business credit your best option is to use a service provider.
Click Here to Start Now.
Step 5 – Monitor Your Business Credit Reports
There are three major business credit reporting agencies, so it’s important to monitor each of your company credit files. Each agency collects data from various sources and may have different information about your company.
Please Note: All the links in this post are clickable and provide great resources, and we may get some benefit from them monetarily. We are affiliate/partners with a few of the service providers.
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