How to Sign Your Company Up With Business Credit Reporting Bureau
- 1). Obtain a federal tax ID number, otherwise known as an employer ID number. This is critical. A social security number is for individuals only, and you do not want to risk using your own credit for business credit. This opens yourself up to liability.
- 2). Choose a credit reporting company. The three main credit reporting agencies--TransUnion, Experian and Equifax--will report your credit standing once you've established business credit. However, you should choose a larger reporting institution, like Dun & Bradstreet, Standard and Poor's or Moody's. These institutions will lend more credibility to your company, as they suggest you take accounting, credit standing and risk seriously.
- 3). Compare membership costs at each company. For example, to become a business reporting member at Dun & Bradstreet, you must pay an initial fee of $229. This service will give your company a unique credit profile and greater legitimacy. The prices for Standard and Poor's and Moody's are unlisted. You must first schedule an initial consultation with an analyst to review products and services.
- 4). Choose a reporting company and pay the required membership fee. Provide the company with your EIN and any business records such as balance sheets, profitability reports, payroll sheets and tax returns. This will help the reporting company create a thorough, accurate and comprehensive reporting file.
- 5). Pay all business loans on time to maintain excellent business credit. Continue to borrow against your EIN and invest in your company to keep it growing. Contact your reporting company whenever there is a major change in the financial makeup of your company, like a change in salaries or profits.
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