Have you heard the saying Anything worth doing well - is worth doing right? Its true " especially when it comes to business. Filing your companys business name correctly is critical in order to obtain business credit. If its done wrong, you could unfortunately give somebody else the access to use your business name or even take it from you once you have your business established. What a terrible loss that would be.
There is paperwork involved in this process, and it needs to be done right. This is one of those times when you want to make sure everything is double checked for accuracy.
The first step is to be sure youve got what you need to set up your company. Below is a simple checklist you can use to verify your company does not look like a hobby, but rather a real business.
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.
There is paperwork involved in this process, and it needs to be done right. This is one of those times when you want to make sure everything is double checked for accuracy.
The first step is to be sure youve got what you need to set up your company. Below is a simple checklist you can use to verify your company does not look like a hobby, but rather a real business.
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 business lines of credit from lending institutions and start obtaining vendor credit without risking your personal credit scores.
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