The way to make sure your small business credit cards don't report on your consumer credit reports.

When you look into the difference between your business credit score versus your personal credit score, remember that any inquiries into your consumer credit score are going to negatively influence that score. And a lot of businesses and lending institutions will conduct inquiries when they are doing business with you for the very first time. You do not want their inquiries to impact your personal credit.

Get a DUNS number

You can't get into Dun & Bradstreet's system without having one, and they are free, anyway. A DUNS number differentiates your company from all others, like similarly-named companies. Dun & Bradstreet has a prerequisite that you register your business on their site prior to they will provide a D-U-N-S number. Please keep in mind: there are a few marginally different ways of acquiring a DUNS if your business is a part of a particular class. These include if your business is an USA government contractor or grantee, or your company is Canadian, or you are doing work as an Apple developer.

File a DBA

If you run your company as a sole proprietor at least file for DBA (' doing business as') status. If you do not, then your actual name will wind up being the same as your company name. As a result, you can still end up being directly responsible for all your small business debts. Plus, according to the Internal Revenue Service, with this structure you have a 1 in 7 likelihood of an IRS audit. This is in contrast to a 1 in 50 likelihood for incorporated businesses! Avoid confusion with this step, and you can noticeably reduce your chances of an IRS audit. And who wouldn't want that?

Go beyond a DBA and establish your company as a specific legal entity via incorporation

Get together with your tax consultant or financial planner to pick which legal entity (sole proprietor, LLC or S-Corp) will ideally fit your business and particular financial circumstances. Incorporation can also help to protect your personal assets in case of a lawsuit. Once your corporation or LLC is registered on your state's Secretary of State's website, you can then get a Business Federal Tax ID Number, so you can open your business's bank account.

Get an EIN (Employment Identification Number, AKA a TIN, or Tax ID Number).

The IRS keeps it easy to accomplish this. You can apply on the web as soon as you ascertain your eligibility.

• Is your principal business established in the USA or in U.S.A. Territories?

• Does the individual who is applying have a valid Taxpayer ID Number (SSN [Social Security Number], EIN, or ITIN [Individual Taxpayer ID Number]

If so, then you can continue.

Open business checking and savings accounts.

Have a talk with your community financial institution about acquiring business checking and various other accounts. If you have been a trustworthy customer on the personal side of things, and you can prove your business is covering its invoices timely, then your bank is going to be a lot happier lending to your small business.

Secure appropriate invoices through your company.

These are truly any bills which are the direct obligation of your small business (or, at least, they should be). These consist of everything from Wi-Fi in your small business's name to the rent or a mortgage for your workplace. Your small business could pay a cell phone service provider or maybe the fuel oil or gas invoice, if that is appropriate. Your business will notice credit scores climb as you pay the bills without delay.

Improve the professionalism of your business and keep your personal and corporate credit apart.