1. INCORPORATE YOUR BUSINESS
Even though you may be incorporated when you are finished reading this, it deserves a mention. With sole proprietorships and general partnerships, the business is legally the same as the owner; therefore, there can be no separation of business credit history from personal. Incorporating a business or forming an LLC creates a business that is legally separate from the onwers.
2. OBTAIN A FEDERAL TAX
The EIN is basically a social security number for a business. It is required on federal tax filings, and is also required to open up a business bank account in the name of the corporation or LLC. In order to comply with IRS requirements, many larger businesses also require an EIN from their vendors in order to pay them for services provided.
3. OPEN A BUSINESS BANK ACCOUNT
Open a business checking account in the legal business name. Once open, be sure to pay the financial transactions of the business from that account. If you use a business credit card for many financial transactions, be sure to pay the credit card bill from your business checking account.
4. ESTABLISH A BUSINESS PHONE NUMBER
Whether you use a landline, cell phone or VOIP, have a separate number for your business and in your businesses legal name. List the number in the directory so it can be found.
5. OPEN A BUSINESS CREDIT FILE
Open a business credit file with all three business reporting agenices: Experian, Equifax and Transunion.
6. OBTAIN BUSINESS CREDIT CARDS
Obtain at least one business credit card that is not linked to you or any other owners personally. Pick a business credit card from a company that reports to the credit reporting agenices.
7. ESTABLISH A LINE OF CREDIT WITH VENDORS OR SUPPLIERS
Work with at least a few vendors and or suppliers to create credit for your company to use when purchasing with them. Ask them to report your payment history to the credit reporting agencies.
8. PAY YOUR BILLS ON TIME
Perhaps it should go unsaid but pay your bills on time, if you are falling behind a bit, as long as your are not past 30 days most credit bureaus will not show a late payment so pay attention. Just like with personal credit, late payments over 30 days with business credit will affect your business credit rating.