4. Get An EIN

An EIN is used when opening a business checking account, establishing a line of credit and even when working with suppliers. Instead of your social security number, your business EIN will be used. All of the above help to build your business credit

Getting Your Employer Identification Number (EIN)

You will need an Employer Identification Number, Tax ID also called an “EIN.” This will be used as your business credit identity. Depending on your business, you will also need licensing for the city, county, and state where you operate your business.

Federal EIN and Licensing

Your business must have a federal tax ID, regardless of whether you have employees. The federal ID is also called an EIN. Essentially, it functions as a Social Security number for your business. You can set up your Tax ID through the IRS’s website. You will then use your Tax ID to open business accounts and build your credit foundation.

If you already have an EIN, you will need a new one if:

– Your business is currently going through bankruptcy in any form.

– You have formed a new corporation or changed the name of the company.

– You have taken on a new business partner and will operate the business as a partnership.

– You have purchased or inherited an existing business that you plan to operate yourself.

– Take the time to make sure all your business credit reporting is done correctly. Verify your standing with agencies, banks, and trade credit vendors, and have all your accounts listed with the exact same Tax ID number.