Make Sure Your Business Credit Cards Don’t Report on Your Consumer Credit Reports

Personal credit inquiries will decrease that score. Many merchants and lenders perform inquiries when doing business with a company for the first time. You do not want their inquiries to affect your personal credit. Get a DUNS number.

A business can’t get into Dun & Bradstreet’s system without one. It differentiates one business from all others. These include similarly-named companies. File a DBA.

A sole proprietor should at least file a DBA. If not, their personal name is the same as the company name. They can still be personally liable for all business debts. Per IRS, with this structure there’s a 1 in 7 chance of an audit. Contrast this to a 1 in 50 chance for incorporated businesses! Make the business a distinct legal entity via incorporation.

Once a corporation or LLC is registered on a state’s Secretary of State’s website, it can then get a Business Federal Tax ID. Now it can open a business bank account. Get an EIN at IRS.gov. Start business checking and savings accounts. Apply for appropriate bills through the business.

Business credit scores rise by paying bills on time.

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