Filing Your Business Name Correctly 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.
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.
The first thing you want to do is make sure youve got what you need to set up your business. This is a handy checklist you should use to be sure your company looks like a real business and not just a hobby.
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.
Remember to consult a professional because its in your best interest to consult with a tax professional or an attorney before you begin any new business venture. There are possible tax laws and implications that could damage your business if its set up incorrectly. A tax professional will offer you the additional benefit of being able to discuss advantages of the structures and help you decide which is the best for you.
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.
The first thing you want to do is make sure youve got what you need to set up your business. This is a handy checklist you should use to be sure your company looks like a real business and not just a hobby.
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.
Remember to consult a professional because its in your best interest to consult with a tax professional or an attorney before you begin any new business venture. There are possible tax laws and implications that could damage your business if its set up incorrectly. A tax professional will offer you the additional benefit of being able to discuss advantages of the structures and help you decide which is the best for you.
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Learn more about the secrets of presenting your company as an established business so so you can get lines of credit from lending institutions and obtain vendor credit without risking your personal FICO scores.
posted by Debt Consolidation Loan at
10:33 AM
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