Step-by-Step Instructions for Building Corporate Credit

Corporations and businesses often use credit to finance items such as electronics and company cars. Without business or corporate credit, you'll have to use your personal credit rating to qualify for loans and lines of credit. Building business credit helps separate your business credit file from your personal file. Like building personal credit, it takes time to build a solid credit profile for a business.

Instructions

1

Work on your personal credit rating. Initially, you may have to cosign loans in your corporation's name to help build a corporate credit file. Keep your personal credit score in good shape by paying bills on time and keeping your debts to a minimum.

2

Request a tax identification number for your business. Business tax ID numbers give your business its own identity. Request an identification number by contacting the Internal Revenue Service by telephone or request a tax ID online by visiting IRS.gov.

3

Incorporate your business. Choose a C corporation, S corporation or a limited liability corporation (LLC) to incorporate your business. The filing fees for incorporating a business are between $100 and $800, and you can save money by incorporating online. Use companies such as Nolo.com or LegalZoom.com

4

Open a bank account in your business' name. Visit a local bank branch and open a business checking or savings account.

5

Apply for a credit card in the name of your business. Ask your bank about secured business credit cards. Requiring a security deposit between $500 and $1,000, secured cards can help your corporation establish a credit score.

6

Look into small business loans. Speak with a loan officer at your bank branch and inquire about the requirements for a business loan. Apply for a small $500 loan (using your personal credit file to cosign or collateral if necessary), and then repay the loan within a few months to add positive remarks to your corporate credit file.