Step 1.1 - Set Up Your Business Entity
Doing business as a separate legal entity is the only way to completely separate your personal credit from your business's credit.
Set Up Your Business Entity
In this section you will complete the following:
- Select your business name
- Select the best entity structure for your business
- Form your business entity
Selecting Your Business Name
Once you have decided to start a business, you will need to choose a name. Before you make a decision it’s important to make sure it is not already being used in a way that could cause a conflict between another business and your own.
Even if you are already incorporated we suggest that you conduct the following name searches below by clicking on the tabs and following the instructions to ensure your company’s business name is in compliance.
CLICK HERE if you prefer to have your business name check and name reservation done for you so you know the name you want is available.
- Instructions
- D&B Name Search
- National Name Search
- Trademark Name Search
- Domain Name Search
- Online Directory Search
Read This First (DIY Name Search)
Prior to incorporating your business it’s essential to choose the right business name. Even if you are already incorporated or have been in business for a while, you need to check and verify that your business name does not put you in a high risk category or conflict with other established businesses or if it could potentially cause Trademark infringement.
Select each of the tabs listed above to conduct a business name search. There are a total of 4 searches to be completed which are the following:
- D&B Name Search
- National Name Search
- Trademark Name Search
- Domain Name Search
- Online Directory Search
D&B Name Search
Check to see if any businesses with the same or very similar names are listed with Dun and Bradstreet (D&B). To use D&B’s Find a Company search Click Here.
Be sure you select “Nationwide” on the “Select a State” drop-down. Your business name should not already be listed with D&B and needs to be unique. The reason for that is you do not want your business always having to explain “why it is not that other business with the same name”.
National Name Search
Check to make sure that your business name does not conflict with other businesses nationwide. To do that you can run a national business name search at CorpNet’s free business name search tool or a time-consuming option is to run a search yourself on each Secretary of State’s web site.
Trademark Name Search
Check with the U.S. Trademark office to make sure that your business name will not cause Trademark infringement. To do that for free please Click Here, then click on “Trademark Search” from there, select Basic Word Mark Search (New User) to submit a query. You want to find that your business name is free and clear.
Domain Name Search
You need to verify that the domain URL (website address) for your business name is not currently being used. To do that Click Here. You should purchase your business name URL (domain name) if it is available as a “.com”. For example if your business legal name is “The Auto Store”, then “www.TheAutoStore.com” needs to be available and you should secure it.
Online Directory Search
Finally, you need to search the online directories to see if your business is listed correctly, or even listed at all. If your business shows-up, make sure all the information is correct. If it does not show-up, then be sure to create a free business listing with the Superpages directory and Express Update (InfoGroup®).
Your Legal Entity
Once you have decided on a company name, the next step is to determine the best form of legal entity for your business. There are several options such as a C or S corporation, limited liability company, etc.
When it comes to entity selection we highly recommend that you consult with your attorney and tax accountant.
If you need help finding the best structure for your business be sure to check out the Business Structure Wizard below.
Choosing the Best Entity Structure
CLICK HERE for help on selecting the right business entity. Simply select the Business Structure Wizard on the page to get started. Once you select the entity to form you have option to incorporate right from within the wizard.
It’s best to build business credit with an LLC or Corporation (S or C Corporation). Creditors, Suppliers, Lenders, etc. prefer to see an actual business entity. In addition, a corporation or an LLC is treated as a separate legal entity which separates you personally from the liability of operating your business. Be sure to compare each entity so you can see the difference between the most common entities.
Form Your Business Entity
Once you decide on the best structure for your business the next step is to form your business entity,
CLICK HERE to form your business entity.
Remember, in order to maximize your funding potential and build a business credit profile that is separate from your personal credit you need to form a separate legal entity such as a corporation or limited liability company.
Once you’ve formed a separate legal entity for your business, you must make sure everything relating to the business is done in the business name. Although you may need to personally sign for certain transactions as an authorized officer of the business, your corporation or LLC is actually the one doing business.
If Your Doing Business in Another State
If your business is incorporated in a particular state, but it’s conducting business in a state other than the state of formation, the state where you are conducting business may require you to file a Certificate of Authority. (Also known as Statement & Designation by a Foreign Corporation)
For example, if your business was incorporated in Nevada or Delaware, but its primary location is in Illinois or California, then you will have to file for Foreign Corporation status in either Illinois or California.
Applying for a Foreign Qualification
You will need to contact the state for which your business wants to conduct business for out of state entities. If you need help qualifying your corporation or LLC CLICK HERE for a done for you solution.
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1
Task to Be Completed
Business Name is Compliant
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2
Task to Be Completed
Business is Incorporated
