1. Business license.
Every business should have or register for a license. This could be a state, county or a local city license or certification. Lenders/creditors will usually verify public record to see if your business is in compliance before making a credit decision. I have seen many business get denied for this simple process. Make sure that you have a business license or certification.
2. Taxes.
Federal taxes are always necessary for 3rd party verification purposes. Also, every small business that is operating should be making money either a profit or loss. State taxes if required and Federal taxes need to be filed every year that the business is in existence. When applying for loan or business lines of credit with your bank, the banker may ask to see tax returns to verify income and expenses. You want to always be in compliance with your tax filing obligations.
Many small business that are operating today do not have their corporate documents in order or even prepared properly. Operating agreements, minutes and stock certificates need to be filled out and signed by officers, managers and personnel to make these documents official. Again, when applying for loans or business lines of credit, your business banker will ask to see these documents to verify certain information about the business that would be helpful in getting your file approved. These documents need to updated regularly and signed by all parties. Filing annual dues are important. Your business need to be in active status at all time. An in active corp is a bad sign that maybe out of business. Keep all corporate documents current and up to date.
These are just a few compliance issues that I thought were most important to small business. Building business credit is not a science. I consider it to be an art.
Visit the link below to get more information about building a fool proof business credit file.
Al,
http://www.tradebit.com/filedetail.php/126427810
No comments:
Post a Comment