How to File Your Business Name to Maximize Business Credit
The old say anything worth doing well is worth doing right is so true in todays economy " especially when it comes to your business. If you file your new companys business name correctly it make is so much easier to obtain business credit. If its done wrong, you could inadvertently give someone else access to your business name and they might even take it from you. That would be a terrible loss.
There is paperwork involved in this process, and it needs to be done right. This is one of those times when you want to make sure everything is double checked for accuracy.
The first step is to be sure youve got what you need to set up your company. Below is a simple checklist you can use to verify your company does not look like a hobby, but rather a real business.
What is your Company Name? Your company must have a unique name in your State. You cant register your name if someone else is already using it. Before you begin you should check this out with the State you wish to do business in. Go to that States website, then do an entity name search. In Michigan, their websites is www.michigan.gov. Once you have seen on the website that your name is available, the next step is to make the decision what business structure (or entity) is going to be best for you (i.e. corporation, LLC, partnership, etc.). Most States allow you to obtain the needed forms to register directly on their website (for free) and will allow you to down-load them onto your computer. What is your Address? Your business must not a P.O. box or UPS address, it must be a regular address, such as your home address. The main idea is that your business entitys address needs to be able to accept mail for your business. Also, the address you register with the State must also be the same address you use when you apply for business lines of credit or vendor credit (like a Home Depot card). Why do I need a Tax Payer ID Number? After youve registered your business with your State, you must obtain from the Internal Revenue Service an Employer ID number (EIN). This specific EIN is what you use when applying for credit in your business name. The only exception is if you are applying as a sole proprietor. What about my Phone Number? Once youve registered with your businesss State as well as obtained the necessary EIN, then you should get a telephone number that is dedicated exclusively for your business. Its critical that this number be listed whenever any calls the national 411 directories. It must have the same name and address that you registered with the State. Also, be sure your use your EIN when you set up your new telephone line. You definitely should never use a personal cell phone number as your primary business number. Banks as well as lending institutions will generally call 411 to verify that the name (and telephone number) youve listed on your application with them matches the data on your States website. If they find differences, you may lose out on obtaining business credit.
A good business habit is to consult a professional on questions you may have regarding your company because it is in your best interest (both personal and business) to consult with a tax professional or a business attorney prior to beginning a new business venture. There may be tax laws or tax implications that could put you or your business at risk. A professional can offer the additional benefits of being able to discuss with you the advantages of the various structures and entities and help you decide which one is best.
There is paperwork involved in this process, and it needs to be done right. This is one of those times when you want to make sure everything is double checked for accuracy.
The first step is to be sure youve got what you need to set up your company. Below is a simple checklist you can use to verify your company does not look like a hobby, but rather a real business.
What is your Company Name? Your company must have a unique name in your State. You cant register your name if someone else is already using it. Before you begin you should check this out with the State you wish to do business in. Go to that States website, then do an entity name search. In Michigan, their websites is www.michigan.gov. Once you have seen on the website that your name is available, the next step is to make the decision what business structure (or entity) is going to be best for you (i.e. corporation, LLC, partnership, etc.). Most States allow you to obtain the needed forms to register directly on their website (for free) and will allow you to down-load them onto your computer. What is your Address? Your business must not a P.O. box or UPS address, it must be a regular address, such as your home address. The main idea is that your business entitys address needs to be able to accept mail for your business. Also, the address you register with the State must also be the same address you use when you apply for business lines of credit or vendor credit (like a Home Depot card). Why do I need a Tax Payer ID Number? After youve registered your business with your State, you must obtain from the Internal Revenue Service an Employer ID number (EIN). This specific EIN is what you use when applying for credit in your business name. The only exception is if you are applying as a sole proprietor. What about my Phone Number? Once youve registered with your businesss State as well as obtained the necessary EIN, then you should get a telephone number that is dedicated exclusively for your business. Its critical that this number be listed whenever any calls the national 411 directories. It must have the same name and address that you registered with the State. Also, be sure your use your EIN when you set up your new telephone line. You definitely should never use a personal cell phone number as your primary business number. Banks as well as lending institutions will generally call 411 to verify that the name (and telephone number) youve listed on your application with them matches the data on your States website. If they find differences, you may lose out on obtaining business credit.
A good business habit is to consult a professional on questions you may have regarding your company because it is in your best interest (both personal and business) to consult with a tax professional or a business attorney prior to beginning a new business venture. There may be tax laws or tax implications that could put you or your business at risk. A professional can offer the additional benefits of being able to discuss with you the advantages of the various structures and entities and help you decide which one is best.
About the Author:
Learn more about the secrets of presenting your company as an established business so that you can get business credit from lending institutions and obtain vendor credit without risking your personal FICO scores.
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4:27 AM
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