Step 3. Create A Legal Entity

Your business credit should be separate from your personal credit. This means creating a legal entity specifically for the business. Usually in the form of a Corporation or LLC. An accountant or even paralegal can handle the entire process for you.

Establish A Legal Entity For Your Business

Creating a legal entity provides your business with a few options that other wouldn’t exist. Your business is separate from you. Its now its own legal entity. It has more validity as a business operation, especially with the IRS. You can register it with Dun & Bradstreet and Experian. Suppliers and lenders are likely to take your business more seriously. You have more protection for your personal assets in the case of any legal business issues.

To begin creating your legal entity, speak with a financial consultant or an accountant about which corporation type best suits your business. There are several to choose from, including an S Corp, C Corp and LLC (Limited Liability Company). Of the three, an LLC is the simplest form. Your business might have started as a sole proprietorship but this is not a legal entity. It is actually still you. Until you setup one of the three mentioned corporations, your business is still operating as you. Click here ask questions from financial advisors are online & ready to help you now. Click here to ask a question from a verified Expert on JustAnswer and get an answer to your question in 1o minutes.

  • To Do 1 – Define Your Business’ Structure

    Create your business entity or verify that all the existing information is set up properly and organized in the right fashion. You can do this with S or C Corporations are best for building business credit, as are LLC’s. Most lenders want to see an actual business entity. This has advantages because when a business is structured this way it is treated as a separate legal entity. This gives you separation from the liability that could come from business operations. BizFilings is your full-service online incorporation service, forming an LLC or corporation, & starting and running a business.

  • To Do 2 – Officially Form Your LLC or Corporation

    It’s important that you create and grow your business credit as a business, specifically, as an LLC or formal corporation. If you have not set up your LLC, do so now. This can be done with in about ten minutes. This will allow you to get the most from your potential funding and let you build a high-quality credit profile while keeping everything separate from your personal finances and credit scores. When you’ve properly created and organized the business, everything must be done as the business and all steps must be taken in the business name. You will need to sign some documents personally, but you are doing so as an owner; from a legal standpoint, the LLC or corporation is actually conducting business, not you. Incorporate in 3 Easy Steps CLICK HERE

To Do List To Complete In This Step

1. Define Your Business’ Structure

2. Officially Form Your LLC or Corporation

Create Legal Entity
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