Preparing to get corporate credit
By now you have a clear understanding of the importance of credit, the types of credit, and why you need it. As you probably guessed, the first step to qualifying for corporate credit is to get your personal credit score up above 700. But when it comes to business funding, it’s important to have other things in place to make your business look attractive to lenders so that they are willing to take a chance on you. Incorporating your business separates you, the person, from your business. You are two separate legal entities. You have unsecured financing separate credit ratings, separate finances, separate everything. And you don’t ever want to mix the two. There are four primary types of corporations. It’s important to choose the right type that best suits your business, your business’ income, and your long term goals. These entities pass profits and losses on to shareholders who are then taxed separately on their personal income tax returns.I t offers personal liability protection and tax benefits. These are tax-exempt, charitable organizations. Before you can fully operate as a business and apply specifically for corporate funding, you must have legally established and incorporated your business. A Federal Employer Identification Number (FEIN or EIN) is issued by the IRS and functions exactly like your social security number, except it is for your business. You will need unsecured business credit cards
A FEIN to open a business bank account, file business taxes, and, yes, to apply for business loans and credit. A DUNS number is a 9-digit business number. It is used to access your business’ credit profile, much like how your social security number is used to access your personal credit profile. Once you have established a legal business entity and have a Federal Employer Identification Number (FEIN) and a DUNS number, you are now ready to open a bank account. Start with a business checking and a business savings account. In some cases, you may unsecured funding want to open business bank accounts at two or more separate banks. These are the four foundational steps to starting a business. Now you are legally able to operate as a business, accept and receive money as a business, and take advantage of the many tax benefits that come from owning a business. Now you are ready to take the next step... get your business ‘credit-ready’ to qualify for corporate funding.