How to Incorporate and Obtain Credit to Open a New Business
- 1). Incorporate your business by filing articles of incorporation. Hire an attorney or certified public accountant to write your articles of incorporation. You can also draft the articles of incorporation yourself by using templates that can be found online, including at your secretary of state website.
- 2). Apply for a tax ID number from the IRS. A tax ID number is a nine-digit number that operates similarly to a Social Security number. Visit the IRS website to apply for a Tax ID number online or you can print form SS-4, fill it out and mail it to the IRS, or you can contact an IRS agent over the phone at 1-800-829-1040.
- 3). Open a business phone line in your business' name. In order to obtain credit, some underwriting departments will need to verify that your business can be located via directory assistance. Contact your local telephone copy and speak with its business department to open a business line.
- 4). Open accounts with shipping and packaging supply companies as well as office supply stores to establish credit. Many office supply stores will approve you for credit as they know you need supplies in order to operate your business. After several months of timely payments, you may be able to obtain larger accounts with other companies.
- 5). Visit your local bank to apply for credit to grow your business. Banks may require you to have good credit before they will extend any credit to you. You may need a credit score over 620. You may also be able to offer collateral in order to increase the chances of obtaining credit.
- 6). Visit the Small Business Administration (SBA) to see about getting approved for small-business loans. The SBA may require you to have a business plan before it will consider approving your business. Use resources like Score or online templates to have your business plan drafted.