| Bad things can happen to good entrepreneurs with | | | | managed as such. |
| fantastic ideas. This statement is not meant to burst | | | | Build business credit. The moment you submit your |
| your bubble - it's meant to nudge you in the direction of | | | | incorporation papers to the state, apply for a federal |
| being realistic about your planning efforts long before | | | | tax identification number. Once you have that, register |
| you're left with nothing but a soapy residue on the floor | | | | with Dun & Bradstreet to start building a business |
| because you failed to implement the best practices for | | | | credit score based on your business activity. Get your |
| protecting your personal assets. | | | | services and vendor accounts transferred into your |
| Take the Proper Steps | | | | name. Set up a bank account under your business |
| It's all too easy to get carried away with the thrill of | | | | name and Tax ID number. If you apply for credit cards |
| being your own boss and finally pushing the results of | | | | or lines of credit for business use, put them in your |
| your hard work onto the marketplace. There isn't any | | | | name, not your personal name. |
| serious entrepreneur that at some time has not put | | | | In the beginning you may be asked to provide a |
| their own money on the line, but the cold, hard fact is | | | | personal guarantee for some of your business needs |
| you can lose your investment if something goes | | | | but limit these to as few as possible. Taking these |
| wrong and your business fails. If you have not taken | | | | steps will help you remove the personal liability from |
| precautions, you could lose everything you own, | | | | your business affairs. It is also wise to consider getting |
| destroy your personal credit and be left with no choice | | | | a loan when you need financing rather than pulling the |
| but to start over. | | | | cash from your own pocket. If your business does fail, |
| Form a corporation. Most people start out as sole | | | | you have not lost all your money. You can learn from |
| proprietors and register with the state as such, but | | | | your mistakes and start over again - the most |
| eventually you will need to form a corporation. You'll | | | | successful business people in the world have all |
| need to form a C Corp, an S Corp or a limited liability | | | | experiences flops. |
| company (LLC). If you don't know the difference, do | | | | Use Business Credit to Get Financing |
| the research or consult with a business attorney. | | | | If you feel bad about losing someone else's money, |
| Consider the tax consequences for the various types | | | | take heart. Business credit lenders are fully aware of |
| in incorporations, and most of all your protection from | | | | the risks they take in lending money to small business |
| personal liability. Remember this point - you and your | | | | start ups. You can use this to your advantage - they |
| business are not one and the same. Your business is a | | | | will insist on seeing a viable business plan before they |
| separate entity with its own life and should be | | | | fork over the cash you want and with a well. |