- Separate yourself from your business: Form a separate legal entity such as a corporation or a limited liability company
- Obtain an employer identification number (EIN) by going to the irs.gov website.
- Get a DUNS number: Dun & Bradstreet is the main purveyor of business credit information. Its system of following your business uses the DUNS number, so by getting one, you allow D&B to create a credit profile of your business.
- Open a business checking and savings account in the name of your business using your EIN and DUNS number.
- Get commercial credit: Whatever business credit accounts you have – phone, Internet, bottled water, put those accounts in the name of the business, using your EIN and DUNS number for identification. See if any of your vendors will do the same. Getting commercial credit is an easy way to begin creating business credit.
- Get a loan: This is where the business savings account comes into play. Although you do not have business credit yet, you do have a savings account in the name of the business. Take out a small loan and use the savings account as collateral — that is, as security for the loan. Once a bank gives your business a loan, you really begin to establish a business credit profile.
- Pay on time: Repay all of this credit on time, and in full.
Before long, you personal credit will be personal and your business credit will be business, and that is as it should be.