Getting Business credit cards that do not report to personal credit

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Getting Business credit cards that do not report to personal credit

Published By Janet Gershen-Siegel at February 3, 2018

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What do you know about getting business credit cards that do not report to personal credit? Business credit cards that do not report to personal credit are not out of reach.

When you take into account the difference between your business credit score vs personal credit score, remember that any inquiries into your consumer credit score are going to negatively have an effect on that score. And a lot of merchants and lenders will carry out inquiries when they are working with you for the very first time. You do not want their inquiries to have an effect on your consumer credit.

Get a D&B DUNS number

You can’t get into Dun & Bradstreet’s system without having one, and they are free of charge, anyway. A D&B DUNS number differentiates your company from all others, including similarly-named companies. Dun & Bradstreet has a prerequisite that you register your company on their website before they will give out a DUNS number. Please keep in mind: there are a few slightly different methods of getting a DUNS if your business belongs to a particular class. These include if your small business is an American government contractor or grantee, or your business is in Canada, or you are doing work as an Apple developer.

File a DBA

If you operate your business as a sole proprietor, then at the very least you need to file for DBA (‘doing business as’) status. If you do not, then your actual name will ends up the same as your business name. Thus, you can still wind up being personally responsible for all your small business debts. Plus, according to the Internal Revenue Service, by having this structure you have a 1 in 7 chance of an IRS audit. This is in contrast to a 1 in 50 possibility for incorporated businesses! Avoid confusion with this step, and you can substantially reduce your chances of an IRS audit. And who would not want that?

Go beyond a DBA and make your small business as a distinct legal entity through incorporation

Meet with your tax consultant or financial planner so as to pick which legal entity (sole proprietor, LLC or S-Corp) will most effectively fit your company and particular financial circumstances. Incorporation can also help to secure your personal assets in the event of a lawsuit. Once your corporation or LLC is registered on your state’s Secretary of State’s website, you can then get a Business Federal Tax ID Number, so you can open your business’s bank account.

Get an EIN (Employment Identification Number, Also Known as a TIN, or Tax ID Number)

The Internal Revenue Service makes it straightforward to do this. You can apply on the net when you ascertain your eligibility.

– Is your principal business based in the U.S. or in US Territories?

– Does the person who is applying have a valid Taxpayer Identification Number (SSN [Social Security Number], EIN, or ITIN [Individual Taxpayer Identification Number]

If so, then you can go ahead.

Start business checking and savings accounts

Have a conversation with your local financial institution about obtaining company checking and various other accounts. If you have been a dependable client on the personal side of things, and you can show your business is settling its invoices on schedule, then your bank is going to be a lot happier lending to your company.

Apply for suitable bills through your company

These are truly any bills which are the straightforward obligation of your small business (or, at least, they really should be). These include everything from Wi-Fi in your small business’s name to the lease or a mortgage for your office. Your small business could pay a cellular provider or even the oil or gas bill, if that is appropriate. Your company will notice credit scores increase as you pay the invoices without delay.

Bolster the professionalism of your company and keep your personal and corporate credit disconnected. You can get business credit cards that do not report to personal credit.

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