3. Physical Location
Your business must be real and not just and an attempt to build personal credit by using a business entity. If that is what you are doing STOP HERE! This process will not work for you. Your business must have a physical office space, even if it is at your home. It is at this physical location that your business should receive regular mail, not at a mailbox store or post office box.
4. Phone Service and Directory Assistance
Your business needs a separate phone line and fax line. The business phone number must be listed with directory assistance. Call 411 and make sure anyone can find your business under the exact business name. If your business is not listed in 411 directory assistance than dial 0 for your service operator and make sure that they get your business listed correctly with 411.
5. Email and Web Address
Your business should have its own email address and business web site with your business domain name. This is done by going to http://www.godaddy.com and registering a domain name. For example, if your business is "Donut Masters, Inc." you would try to register www.donutmasters.com or www.donut-masters.com. You can also use domains that end in .net, .biz, .us, etc. The setup and hosting of your web site can cost as little as $200 a year.
You must obtain a business license and, if applicable, a tax resale license in the State and possibly County or City where you are conducting business. Following the proper regulator guidelines for operating your business is critical to building a favorable business credit profile.
The business should have two years of financial statements. Don’t panic or stop here if you haven’t been in business for two years. Begin building your financial statements from the day you started the business and keep going with this process.
How do you have two years of financials with a business entity that was just set up? If you have been in business as a sole proprietor or partnership prior to forming your business entity, you can use those financials. Ideally, the financials include a balance sheet and income statement for each of the last two years. For credibility I highly recommend that you use a CPA to prepare your financial statements.
8. Tax Returns
Your business entity must have a Tax ID number (EIN), just like you have a Social Security Number. Your Tax ID number is used to open your bank account and to build your business credit profile. Every corporate entity must file a SS-4 form with the IRS to obtain a tax identification number. This number is vital to successfully building your business credit profile.
Make sure you have properly established both your Federal and State business tax ID numbers under the exact business entity name.
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