How To Establish and Build Business Credit: 6 Steps Made Simple

This post was originally published on On Deck

Establishing and building business credit is critical for the growth and sustainability of any business, whether it’s an early-stage startup or a seasoned corporation. Just like individuals rely on personal credit scores, businesses also have credit profiles that lenders, suppliers and other stakeholders scrutinize to assess financial health and credibility. 

This guide will help you with establishing business credit, and provide you with actionable steps to navigate this important aspect of business finance.

6 Steps to Establish and Build Business Credit
Establish your business as a legal entity. The first step in building business credit is to formalize your business as a distinct legal entity. You should consider whether your business is a sole proprietorship, partnership, C corporation, S corporation or limited liability company (LLC). The IRS can help you learn about those types of business structures. Establishing your business as its own legal entity segregates personal and business finances, laying the groundwork for a separate credit history tailored to your company’s needs. Obtain an Employer Identification Number (EIN). An Employer Identification Number (EIN) is like a Social Security number for your business. This unique identifier is important as it will allow you to do things such as open

Read the rest of this post, which was originally published on On Deck.

Previous Post

Calculating Your Working Capital Needs

Next Post

What Is a Soft Credit Check for a Business Loan?