The Complete Guide to Business Credit

The Complete Guide To Business Credit “

Things need to form the correct business foundation

I can not teach you about business credit without discussing a business plan. The foundation to your business is very important. I want you to start thinking about how much business credit you need and if you can afford to actually pay it back. The worst thing you can do is start using business credit with no cash flow or plan
to generate revenue. Yes, I know most of you already have this part all set, but it was worth a mention. To those of you who don’t, take a look at my Youtube video covering the topic.

2. Name Your Business: Avoid names that are already trademarked. I would hate for you to start building your business credit only to later receive a cease and desist or even get sued. You can use the TESS website to verify that your business name is still available.

PLEASE NOTE:Your name and business classification will determine if you are eligible for business credit/funding. Research your industry to determine if it is high risk or not. Examples include: Hair businesses, ammunition/weapons, gambling, check cashing, brokering services, political services, pawn shops and real estate to name a few. You may

3. Choosing a Business Location:

I know you are probably wondering why this step comes before registering your LLC and EIN, so let’s break it down. A huge mistake I see new business owners make is registering their LLC and EIN to their home address. You want to avoid using your home address for your business. Your LLC address is a public record and should be a secure location. If you don’t have a storefront or physical
office, you can register your business with a virtual business address. Please avoid using P.O. Boxes. Options for your virtual business address include: Opusvirtualoffices.com and Regis.com/en-us. A safer route will be to check with business centers/coworking spaces in your area to see what they offer.

5. Obtain an Employer Identification Number (EIN):

You can apply for an EIN online for free through the IRS website. Your EIN will be required to open a business bank account.

7. Create A Website and Email:

Obtain your domain from Godaddy.com and create a business email address info@yourbusiness.com

9. Obtain Your D-U-N-S Numbers:

(Data Universal Numbering System) Register your business with Dun and Bradstret for free. This will establish your business credit profile. The process can usually take 1-7 days.

11. Open A Business Bank Account with your EIN:

This will help you separate your business and personal finances. Keeping your finances separate will also help you when it comes time to file taxes.

Additional steps that can be taken to help establish credibility:

Create social media accounts for your business Facebook, LinkedIn, Instagram, Pinterest, Tik Tok, Twitter and Youtube -Add Your Business to Yelp and Bing

2. Name Your Business:

Avoid names that are already trademarked. I would hate for you to start building your business credit only to later
receive a cease and desist or even get sued. You can use the TESS website to verify that your business name is still available.

4. Register Your Business:

Registering your business as a Limited Liability Company (LLC) will create a separate legal entity apart from your personal credit. It will separate your personal finances, protect you from liability in some cases and make it easier to get business loans. The cost of your LLC will vary from state to state. Check with your local SBDC for free assistance if needed.

6. Obtain A Business Phone Number:

For Local and Toll Free you can use Global Voice Direct. Avoid using Google Voice for your listing as it will not register properly

8. List Your Business Address and Phone:

This will help establish your credibility and allow credit bureaus to find your business. Add your business to Yellow Pages, 411, Google and other local/online directions with List Yourself.

10. Find Your NAICS- Sic Code:

(North American Industry Classification System) This code can be obtained at www.naics.com/search

12. Create a NAV account:

Use this account to start monitor your business credit scores for free.