BUSINESS CREDIT 101

Establish the Business 1. NAME YOUR COMPANY - The first step in this process is to select a company name. Be sure you pick one that has not been selected by another company in your state, You can check with you Secretary of State and once that is done you can move onto the next step. ******************************************************************************************************************************************************* 2. INCORPORATE YOUR COMPANY - Now that you have selected your business name, you are going to need to establish your corporation with the state of your choosing. To do this, you can go to "Free Registered Agent". which is owned by InCorp Services. They will give you registered agent services free for the first year. They also only charge a nominal fee plus your states filing fees to incorporate your business. *************************************************************************************************************************************************************** 3. OBTAIN AN EIN - Once you have incorporated your business you will need to obtain a Federal Employer Identification Number. You can file form SS-4 online at the Internal Revenue Service website. http://www.irs.gov/businesses/small/article/0,,id=102767,00.html * Once you have completed this form you will obtain your EIN in a matter of seconds. Be sure to print it out and write it down because they do not send you an email confirmation. This is the number that you will need in order to apply for credit under your business name without a personal guarantee. ************************************************************************************************************************************************************* 4. ESTABLISH A LOCATION - So now you have your EIN and are incorporated. Your business needs to have a physical location that is not your home address. The UPS store will not work because most creditors have them flagged. An alternative is to get a virtual office in your home town. Most of these will supply you with a lease agreement (sometimes needed to get credit), license hanging services, your name on a wall plaque at the location, and mail forwarding services. You should be able to find these services bundled for about $100 per month. In addition, some of these places will even allow you small usage of the buildings conference room and offices for an additional fee. This is great if you just need a completely quiet place to work for a few hours or if you need to sign a contract or conduct a meeting.(I HAVE BEEN TOLD RECENTLY THAT DUN &BRADSTREET WILL FLAG VIRTUAL OFFICE ADDRESSES NOW,I USED MY HOME ADDRESS FOR MY DUNS CREDIT FILE AND IT WORKED FINE!) *************************************************************************************************************************************************************** 5. ESTABLISH PHONE SERVICE - Now that you have a physical location for your business, you will need to establish a utility bill using your newly received EIN and business address. There are many choices for this step of the process.(IN MY AREA VERIZON WILL SET YOU UP WITH A SMALL BUSINESS PHONE LINE FOR $21.99 A MONTH + TAXES & FEES,WITH UNLIMITED LOCAL CALLS AND CALL FORWARDING!)http://www.verizon.com/smallbusiness/ ************************************************************************************************************************************************************** a) Contact your local telephone companies business sales department and request what they call a Remote Call Forwarding Number. This is a number that the phone company manages at their and is forwarded to a number of your choosing. They will usually charge a setup fee and $10 to $15 per month. Make sure you give them the address of the office that you set up and the EIN number. Also make sure that they will list you in the 411 directory under your address, not theirs. *************************************************************************************************************************************************************** b) Another method is to get an 800 number and have it forwarded to a number of your choosing. You can then utilize "List Yourself" to add yourself to your local 411. However, this is not recommended because there is still no free way (that I know of) to list yourself in the national 411 directories. *************************************************************************************************************************************************************** c) For those of you that need a true business line, you can subscribe to the Vonage Small Business Premium service (or any other small business VOIP service) and for $49.99 per month and they will list your business in both your local and national 411 directories. *************************************************************************************************************************************************************** 6. ESTABLISH A CHECKING ACCOUNT - Once you have all of that in order, you can now open your corporate checking account. Many banks only require $100 to open the account, 2 forms of identification, and your Articles of Incorporation. (I USED US BANK THEY LOVE SMALL BUSINESSES,THEY HAVE A SILVER BUSINESS CHECKING THAT IS TOTALLY FREE!) SEE LINK BELOW. https://www.usbank.com/small-business/checking/silver-business-package.html ********************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************* Every Silver Business Package Checking account comes with: 150 free transactions per statement cycle1 $0.50 per transaction over the free combined transactions 25 free cash deposit units per statement cycle2 Online Banking, Mobile Banking3, Bill Pay and Account Alerts, and U.S. Bank ATM transactions4 50% discount on first check order up to $505 *************************************************************************************************************************************************************** The Silver Business Package gives you these valuable extras: Free Card Reader when you sign up for our Clear & Simple Pricing program through U.S. Bank Payment Solutions Merchant6 $200 payroll credit for Full Service Payroll or $9.99 for the first three months for Do-It-Yourself Payroll.7 Viewpost® Digital Invoicing and Payments:- Create and Send Invoices for Free Introductory bonus rate on a U.S. Bank Platinum Business Money Market8 50% discount on Gold Personal Package checking monthly maintenance fee.9 First year annual fee waiver on the Business Reserve Line10 Preferred interest rates on Equipment Financing11 No Monthly Maintenance Fee! *************************************************************************************************************************************************************** There are no checking account maintenance fees or minimum balance requirements with a Silver Business Package Checking account. * Item Fees $0.50 for each transaction above 150 per statement cycle All U.S. Bank business packages and accounts provide access to the following: * Online Banking for Business – Manage your business finances and pay bills 24/7, when and where it’s convenient for you. Remote Check Deposit – Choose from entry-level solutions that allow you to use your own scanner to high-end systems for businesses that receive a large volume of checks. Check Fraud Prevention – With U.S. Bank’s Positive Pay, you can take preventive measures against check fraud, helping decrease the risk to your business. Card Payment Processing – Improve cash flow, minimize collections risk and better serve your customers while meeting stringent security standards to protect cardholder data.*************************************************************************************************************************************** Business Reserve Line – A $1,500 to $5,000 unsecured line of credit for overdraft protection (subject to credit approval). Business EdgeTM Check Card – A convenient way to get cash from ATMs and many retail establishments. You can also use your check card instead of cash or checks for everyday purchases. *************************************************************************************************************************************************************** YOU CAN VIEW COMPLETE ARTICLE AT:http://ficoforums.myfico.com/t5/Business-Credit/Business-Credit-101/td-p/108894/highlight/true