It seems simple to select a business name but what do you need to know when selecting a business name?

Pick a business name that you can trademark and doesn’t include verbiage that puts your business in a high-risk industry.

Before you purchase your domain, build a website or print business cards make sure the name you select is available with your secretary of state.

Once you know that your business name is available, reserve your business name and file your business entity.
As you can see there is a lot that goes into selecting your business name.

This segment reviews how to maintain or establish your business credibility.

What is credibility? The quality of being trusted and believed in.

You can boost your business’s credibility and control the perception lenders, competitors, prospects, and other entities.

Anyone can pull your business credit. It is unlike personal credit where a signed authorization needs to take place.

When someone pulls your business credit they can view many intimate details about your business.

When you set up your business entity, EIN#, Business address, email, website, phone number & business credit reports you will keep in mind that these details boost your business credibility.

Let’s start with your business entity… It’s all in the name.

When you establish your business entity with the secretary of state make sure you select a name that you can use on all of your business records. If your business name defines the product or service your company offers it should be inclusive.

For instance, if you are selling sporting goods you wouldn’t want to name your business Nate’s Bats.

There are some high-risk industries that may guarantee a decline with creditors. Using that high-risk industry description in your business name will limit your financing options.

You can review the segment notes for a list of these commonly restricted industries.

When setting up your business entity you will likely ask yourself what type of entity you should establish. Each entity has their own tax and liability differences.

Your segment notes will give you a grid to help you make your decision.

Federal EIN#

Once you have established your business entity you can now apply for your federal EIN#. Your federal EIN# is your business’s specific identification number. Just like your SSN # is your individual identification number.

You will use the same business information you used to establish your business entity. It’s important that you use the same business name, address and contact information used on all business records. The slightest variance can result in declines or incorrect reporting.

It is simple to apply for your federal EIN# on the IRS website.

The system will ask for the business owners information & SSN.

See the course notes for helpful links.

Business Address

Many lenders and prospects prefer that a business has an actual physical business location. Some lenders, specifically revenue based lenders, may decline if your business doesn’t have an actual physical business location.

It is important that your business uses an address that is listed with the United States postal service. Many lenders use USPS tools to verify business locations. Refrain from using a business address that others businesses are using. When business credit is reported sharing addresses can result in misreporting payment data.

Business Phone number

Lenders are able to see if your business phone number is a cell phone, residential number or an actual business phone number. It boosts credibility to have an actual business phone number. We recommend that you list your business phone number under the national 411 directory so that lenders can more easily verify your business.

Website & Email

Lenders and prospect customers will likely search for your website. A valid and operational website can boost credibility drastically.

Equally important is a business email address instead of using a free or personal email address.

For instance john@atctechnologies.com instead of johntechnologies@gmail.com

There are many inexpensive options to achieve these goals. We have helpful resources in your segment notes.

Business Credit Reports

It is important when establishing your business credit reports that you keep in mind they can boost your business credibility.

Business credit reports that appropriately reflect who your business is and how the business handles credit will ease the minds of those that are interested in working with your business. Business financing can be declined based on business credit reports alone.

Who will verify your business’s credibility?

• Trade accounts
• Lenders
• Suppliers & manufacturers
• Clients
• Prospects
• And more

It’s time to take control of your business credibility.