Building business credit with your EIN number

There's really no such a thing as business credit. You still are liable for it as owner, president, etc.

 

There's more to it than a limited liability corp. your track record of being in business matters just as much.

 

You might want to look into getting a Dun and Bradstreet #. Just an option. I'm not an opponent, or proponent of them.

 

Not that im aware of.....

First there are several business credit bureaus out there, the most common one is Duns and Brandstreet. This is who I use. Go to their website and request a DUNS number it's free. A DUNS number is used to establish a business credit file which is often referenced by lenders and potential business partners to help predict the reliability and/or financial stability of the Company.

Remember their running a business too so their going to try to sell you a bunch of crap you that you don't need in my opinion. They will also say for X fee we will get you your duns number mailed out to you in 5 days. Don't fall for it, mines arrived in less then two weeks for free.

After I got my DUNS number I took it back to quality (dealer) to have it set up to where they report the payments to Dun and Brandstreet aka D&B.

Warning: Do not mix your personal assets with business. When you apply for other credit trade lines such as a fuel card, Ryder, ect always use the EIN and DUNS and it should work out. Not a expert but that's how I have mines set up.

 

Most O/Os will not get business credit if your referring to the business itself tied to the loan.Lending companies don't view you the same as most small business.To be what they view a stand alone business it has to be a structured business.To meet these requirements you need an established businesses address that not your home,a phone in the company name,a structured setup a CEO,VP,safety manager a lender wants to see more then just one person making decisions for the business. You can pay Dunn and Bradstreet all you want until you meet terms of a structured business your social security number will always be tied to the loan.now you can get loans in your business name but your credit and social security is tied to it.

 

And also that EIN itself is tied to your social security number.The real only purpose for it is to protect your social security number from others.For example if you run on your own authority you have to give it out to a lot of different companies and people brokers and companies you use your ein never give out your social security number. If your leased to a company you don't use it very much.But don't be mistaken that EIN is tied directly to your social security.

 

I agree. I assumed the OP had it set up this way because of the LLC.

im looking into owning multiple trucks not just one and This is what I did......

At the advise of a CPA I started two companies....I have a Operating Company and a Holding Company. The Holding Company owns the Operating Company LLC. This is what's called a "Faceless Company". Holding Company holds the assets while the Operating Company does all the dirty work.

I use a Company called Regus in Chicago for my physical address.

They have locations all across the US.

http://www.regus.com/

With Regus, I have a personal office, phone, fax, meeting room and physical address for $450 bucks a month. Money well spent. Don't use a po box because it might come back later and bite you when someone tries to google your business and sees a UPS store. Next I started a website, twitter, Facebook page.....every once in a while have a friend leave a good review.

be sure to contact yellow pages, yahoo, google, and local directories to add your business to their site with your business number. Your not trying scam anyone; hell the lender will see your bank statements but your just making the business appear more real, bigger and independent from your personal assets and that's what their going to be looking for.

 

you just reminded me of another good point. The SSN is used with the EIN for Identification purposes when you first set it up on the IRS website; you can have someone apply for a EIN for you.

What you want to do is when your finished make sure the EIN only list your BUSINESS NAME. If your EIN has your business name plus your name on that second line your in trouble; because now it looks like your personal is tied in with your business. I made that mistake when I set mines up and when someone at the bank pointed it out to me I had to go back and apply for another EIN number.