Earn Income Helping Others Get The Funding They Need And Deserve

Business Set-Up

1. Set up a website (optional…but a good idea)

Example: Doug is the owner of Sportsdirect.com, an online sporting goods business that is struggling with cash flow making it difficult to purchase inventory and to pay employees.  Unfortunately Doug hasn’t had time to work on his website and honestly he is a sports guy, not a programmer or into marketing.  What Doug doesn’t know is that his site comes up on page 3 when consumers search for ‘sporting goods’.  Doug decided he needs a line of credit to help with his shortage of funds but creditors noticed that his page isn’t positioned for maximum exposure and doesn’t look like it was professionally put together.  The lender gave Doug a $5,000 line but would have issued more if they felt his business was more credible.

2. Set up a business email address

It is important to get a company email address for your business, shy away from using free email services like Google, yahoo, AOL, and so on. Example: Jane’s Flower Shop sends out a confirmation email every time a client places an order. Unfortunately Jane never set up a professional email and uses “janesflowers@yahoo.com”.  Though it is a small item in nature, clients couldn’t help but feel the “yahoo” email wasn’t very professional, suppliers didn’t take her requests seriously, and creditors couldn’t help but assume she wasn’t as credible.

3. 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.

Business Licenses

  • It is important to make sure you have all of  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. Once you have done this also insure the correct business information shows on your license(s) (business name, address, phone, etc).
  • 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.
4. Business Bank Account

Action Items

  • Verify that the business has an active Business Bank Account
  • Business Bank Account should reflect the correct business information (business name and address)

Overview As you know in Step 1 we are preparing the business for any underwriting or verification that a creditor will put your business through.  In addition to this, we want your business to look and feel professional to creditors and to your clients.  It is important that your business has a business bank account for these reasons and more. Having a business checking account will allow you to keep your business funds separate from your personal for tax and legal purposes.  If your business has a business checking account you will be able to receive and pay right from your business.  Furthermore there are creditors that will lend based on revenue flowing through your business bank account and/ or merchant account (business must have a physical business location).

5. Merchant Credit Card Processing

It’s proven that clients will spend more if they can pay by debit card or credit card. Could your business benefit from taking debit cards or credit cards? There is no shortage of sources out there that can provide you with a merchant account, a processing gateway and any necessary equipment so you can accept credit cards from your customers. In fact, your bank will more than likely want to be that merchant solution for your business. However, it’s important to explore your options before setting up a merchant account with your bank. It might be convenient but can also greatly limit your financing and credit options both short term and long term. For example, there are funding programs based on your merchant processing and not on standard credit underwriting that can provide ongoing access to cash for your business.

6. Verification

Take the time to verify that these main agencies (State, IRS, Bank, and 411 national directory) have your business listed the same way and with your Exact Legal Name. Also take the time to ensure every bill you get (power bill, phone bill, landlord, etc.) has the business name listed correctly and comes to the business address. Attention to detail. This is very important. MAKE SURE YOU DO IT NOW! The following agencies are vital to your business financing and business credit building success: 1. Your State 2. Your County 3. Your City 4. The IRS 5. Your Bank 6. 411 Directory Assistance 7. Misc Credit or Other Accounts Take the time now to verify that each agency has your business listed the same:

State business filings listed correctly

County license and/or permit filings listed correctly

City license and/or permit filings listed correctly

IRS filings listed correctly

Bank account listed correctly

411 directory assistance listed correctly

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