Have you heard the saying Anything worth doing well - is worth doing right? Its true " especially when it comes to business. Filing your companys business name correctly is critical in order to obtain business credit. If its done wrong, you could unfortunately give somebody else the access to use your business name or even take it from you once you have your business established. What a terrible loss that would be.
You know there is always going to be paperwork involved in any type of process, so its important that it needs to be done correctly. You absolutely want this to be one of the times when you double check everything for accuracy.
First, make sure you have what you need to set up your business. Here's a quick checklist to make sure you look like a real business and not a hobby.
Company Name " Your business must have a name that is available for use in your State. You cannot register your business entity if someone else has already used the name you choose. You can find out if your name is available by going onto your States website and doing an entity name search. For example, in Michigan you would go onto their website www.michigan.gov. If your name is available, then you make the decision at this point what business structure is going to be best for your business (i.e. corporation, LLC, etc.). Generally, you can obtain the forms you need to register by going onto your States website and down-loading them for free. Address " Your business needs a real address, not a P.O. box or UPS address. You can use your home address if you wish, but the main idea is that your address needs to be a physical address that can accept mail for your company. The address you register with the State must be the same address you use when you apply for business lines of credit or vendor credit (like a Home Depot card). Tax Payer ID Number " After you have registered your company with the State in which you are going to do business, you must then get your Employer ID number (EIN) from the Internal Revenue Service. This EIN is the number that you will use when you apply for business credit. You will not use your social security number (unless you are a sole proprietor) on business applications. Phone Number - Once you have registered with the State, and obtained your EIN from the IRS, you should get a separate phone number dedicated to your business. This phone number must be listed in the national 411 directories with the same name and address that you registered with the State. When you call to set up your new phone line, be sure your use your EIN and not your social security number. You should not use your cell phone number as your primary business number. Lending institutions will generally call 411 to verify that the name and phone number you list on your application matches the information that they find on the State website where your business is registered. If there are discrepancies in the information provided, you may not be able to obtain any business credit.
Dont forget to consult a professional. Its always in your best interest to consult with a tax professional or an attorney before you begin any new business venture. There are possible tax implications that could hurt you or your business if you set up your company incorrectly. A tax professional may also offer the benefit of being able to discuss with you the advantages and disadvantages of each of the business structures that are available and can help you decide which one is the best for you financially.
You know there is always going to be paperwork involved in any type of process, so its important that it needs to be done correctly. You absolutely want this to be one of the times when you double check everything for accuracy.
First, make sure you have what you need to set up your business. Here's a quick checklist to make sure you look like a real business and not a hobby.
Company Name " Your business must have a name that is available for use in your State. You cannot register your business entity if someone else has already used the name you choose. You can find out if your name is available by going onto your States website and doing an entity name search. For example, in Michigan you would go onto their website www.michigan.gov. If your name is available, then you make the decision at this point what business structure is going to be best for your business (i.e. corporation, LLC, etc.). Generally, you can obtain the forms you need to register by going onto your States website and down-loading them for free. Address " Your business needs a real address, not a P.O. box or UPS address. You can use your home address if you wish, but the main idea is that your address needs to be a physical address that can accept mail for your company. The address you register with the State must be the same address you use when you apply for business lines of credit or vendor credit (like a Home Depot card). Tax Payer ID Number " After you have registered your company with the State in which you are going to do business, you must then get your Employer ID number (EIN) from the Internal Revenue Service. This EIN is the number that you will use when you apply for business credit. You will not use your social security number (unless you are a sole proprietor) on business applications. Phone Number - Once you have registered with the State, and obtained your EIN from the IRS, you should get a separate phone number dedicated to your business. This phone number must be listed in the national 411 directories with the same name and address that you registered with the State. When you call to set up your new phone line, be sure your use your EIN and not your social security number. You should not use your cell phone number as your primary business number. Lending institutions will generally call 411 to verify that the name and phone number you list on your application matches the information that they find on the State website where your business is registered. If there are discrepancies in the information provided, you may not be able to obtain any business credit.
Dont forget to consult a professional. Its always in your best interest to consult with a tax professional or an attorney before you begin any new business venture. There are possible tax implications that could hurt you or your business if you set up your company incorrectly. A tax professional may also offer the benefit of being able to discuss with you the advantages and disadvantages of each of the business structures that are available and can help you decide which one is the best for you financially.
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Learn more tips on how to present your company as an established business so that you can get business business credit from lending institutions and start obtaining vendor credit without risking your personal FICO scores.
