Employer Identification Number (EIN)
Whether you have employees or not, your business entity must have a Federal Tax ID number (EIN). Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open your bank account and to build your business credit profile. If you have an EIN, you may still need a new one if:
- Your business is subject to a bankruptcy proceeding.
- You form a new corporation or change the corporate name.
- You take in new partners and operate as a partnership.
- You purchase, or inherit, and plan to operate an existing business.
Please take the time to verify that all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.
To build business credit your business must have a Federal Employer Identification Number (EIN).
To obtain a EIN, or to determine if you need a new one, you can Click here to do it yourself, call the IRS directly at 800-829-4933 or simply have a professional service provider do it for you.
Bookkeeping Services That Build Business Credit
We could tell you it is important to keep good books because it makes getting loans easier, saves you money on tax preparation or because keeping good books protects you from overcharges or getting ripped off…but the main reason you should keep good books is because IT IS THE LAW. That’s right, the IRS requires you to use a record-keeping system that “clearly shows your income and expenses.” So how do you address this essential component of operating your business?
Allow BOSS Books to do all the work for you and report your low monthly payments to Dun & Bradstreet! This creates an easy trade line that only shows on your business credit while handling your QuickBooks Chart of Accounts, P&L Statements, Balance Sheets, and more.
One of the most common mistakes when building credit for your company is non-matching business addresses on your business licenses. Even worse is not having the “required” licenses for your type of business to operate legally. You will need to contact the State, County, and City Government offices to see if there are any required licenses and permits to operate your type of business. You can contact them directly via phone or search their websites to confirm if there are any required licenses or permits for your type of business.
Example: You start up a business and operate it out of your house. In this instance, some cities might require you to have a license, while other cities may not.
You have verified that your EIN is filed and correct:
You have obtained all required licenses and/or permits for your business: