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Before you can start generating business credit, first you have to start by creating a business entity that will be eligible for it. Business credit is not based on an individual, but rather on a fictitious legal entity that needs to be registered with the IRS. This will require getting business credit with EIN numbers, and that is a bit of an annoying task.
When you form your business, you will probably want to form either a C-corp or an LLC. Both of these are commonly chosen business forms that are useful for various kinds of businesses. LLC’s tend to be better at providing flexibility and ease of use while C-corps are better for long-term, stable business models. Whichever one you pick will have to be registered with the IRS so you can go about getting business credit with EIN numbers. An EIN number is basically the equivalent of the social security number, but for businesses. It helps identify your business to the IRS, and is the code term used to identify yourself to the credit bureaus. You will also need a dedicated phone line and a bank account for the business credit bureau in order to start the business credit rolling in. You can now take this account to one or more of the credit bureaus and you are ready to go.
Getting business credit with EIN numbers is frustrating, but the rewards are more than worth it. With a strong business credit foundation, you can start on the path of building long-lasting business empires that will provide you with healthy dividends and give you options to incredible loan opportunities that are not available to individuals.
