Is Your Business Name Stupid Or Perfect?

Think about this scenario. You are in the real world and are trying to get a business line of credit or a business credit card and you are sitting across the desk from a loan officer. Do you think he is going to take you or your business seriously if the only name you come up with is just plain ridiculous?
Of course, there are some really cool businesses that are established right now that have some crazy names, but perhaps the name implies exactly what their business products are about. Then its perfectly okay to use an unusual business name, but these cases are few and far between. Remember also that if you decide to add another stream of income to your existing business will the name still fit?
Think long term when you are trying to decide the name of your new company. You are going to need funding for your everyday business needs even if you have an immediately profitable business. It is highly unlikely that the cash you need to meet payroll, buy inventory, buy equipment, buy gas, or buy office supplies is going to come out of your cash register. You are going to need other sources of cash in order to survive. What better source of cash than other peoples money?
This is why choosing and filing your business name correctly is critical to obtaining business credit. If you do it wrong, you could also give someone else the ability to use your business name or even take it from you once you have your company established. You dont want that to happen.
There is paperwork involved in this process, and it needs to be done right. This is one of those times when you want to make sure everything is double checked for accuracy.
First, make sure you have what you need to set up your business. Here's a quick checklist to make sure you look like a real business and not a hobby.
Company Name Your business must have a name that is available for use in your State. You cannot register your business entity if someone else has already used the name you choose. You can find out if your name is available by going onto your States website and doing an entity name search. For example, in Michigan you would go onto their website www.michigan.gov. If your name is available, then you make the decision at this point what business structure is going to be best for your business (i.e. corporation, LLC, etc.). Generally, you can obtain the forms you need to register by going onto your States website and down-loading them for free.

Address Your business needs a real address, not a P.O. box or UPS address. You can use your home address if you wish, but the main idea is that your address needs to be a physical address that can accept mail for your company. The address you register with the State must be the same address you use when you apply for business lines of credit or vendor credit (like a Home Depot card).

Tax Payer ID Number After you have registered your company with the State in which you are going to do business, you must then get your Employer ID number (EIN) from the Internal Revenue Service. This EIN is the number that you will use when you apply for business credit. You will not use your social security number (unless you are a sole proprietor) on business applications.

Phone Number - Once you have registered with the State, and obtained your EIN from the IRS, you should get a separate phone number dedicated to your business. This phone number must be listed in the national 411 directories with the same name and address that you registered with the State. When you call to set up your new phone line, be sure your use your EIN and not your social security number. You should not use your cell phone number as your primary business number. Lending institutions will generally call 411 to verify that the name and phone number you list on your application matches the information that they find on the State website where your business is registered. If there are discrepancies in the information provided, you may not be able to obtain any business credit.

Dont forget to consult a professional. Its always in your best interest to consult with a tax professional or an attorney before you begin any new business venture. There are possible tax implications that could hurt you or your business if you set up your company incorrectly. A tax professional may also offer the benefit of being able to discuss with you the advantages and disadvantages of each of the business structures that are available and can help you decide which one is the best for you financially.
There are many more important points to setting up your business and building your business credit profile. There is a new eBook on the market that provides step by step instructions on these points and it is available for purchase.
As an added bonus, when you purchase the eBook you will get a 21 page Free Credit Restoration Guide that contains 13 specific letters that clearly state the FCRA (Fair Credit Reporting Act) rules. Begin to use the laws that are already there to protect you and to clean up your personal credit if you have issues. This is a limited time offer, so don't wait.
ACT NOW !!!
For more information, click here to access the website for Basics of Business Credit written by Susan Carter. Thank you.