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One of the great benefits of starting a business is that it is possible to establish a new and separate credit profile that is distinct from your personal credit profile This means that although you may have poor personal credit, you can structure your new business in a manner that allows you to build a pristine credit profile for your company, allowing you to receive loans, credit cards, lines of credit, etc. that you would not be able to obtain as an individual (and often at better interest rates). The Basic Process To begin separating your personal credit profile from that of your company, the following are the first basic steps. 1. Incorporate or Form an LLC
You need to have a
separate entity to build a separate credit profile.
We can prepare this
form for you when you use our incorporation services.
Business funds and
personal funds must be separate.
This is a 9-digit
number issued by Dun & Bradstreet that most companies utilize to verify the
credit history of businesses.
Make sure you've
obtained all necessary business licenses, permits, etc. that are required in
your jurisdiction. Click
here for our startup checklist.
Make sure your
business is listed in the phone directory and the phone line is in the business
name, not in your personal name.
Make sure the exact
same business address is used for your DUNS number, the yellow pages listing and
phone number as well as on business licenses and company credit cards (that you
will be applying for later). Your home address is acceptable, however, private
mailboxes and P.O. boxes may not be. Apply to those companies that generally grant new businesses credit cards and lines of credit without requiring a personal guarantee. These companies will then update your credit profile with the various credit agencies. This is how you initially establish a business credit profile. |