Page 134 - Winning The Credit Game Bundle (CK Patrick)

Proof of identification as the owner of your business,
such as a driver’s license, passport, or state
identification card.

When you have your documentation gathered, it’s time to go
to the bank to open your accounts.
At this time your business will not have any credit history,
but don’t worry. We will add new business credit lines as we go
and investigate potential upgrades to your existing business
credit line throughout this book. Since your business is now an
official legal entity, we can do it all without risking or harming
your personal credit.
If you already have pretty good personal credit, minimal
hard inquiries, and are confident in approval, this may be an
opportune time to apply for a business credit card as a personal
guarantor. This means that you may be asked to personally guar-
antee that you will repay money borrowed by your business.
This is a kind of business credit to be especially careful with.
Don’t take out loans or rack up charges you can’t afford to pay
back at this time, since this may affect your personal credit as the
guarantor. But using this line of credit reliably to make and pay
back small business purchases will allow you to start building
business credit history immediately.
I probably don’t need to tell you to use your business credit
line and all your business accounts responsibly. Don’t make
personal deposits or purchases using your business accounts.
This will ensure that you do not get taxed twice or fined by the
IRS. Your personal and business finances should always be kept
entirely separate.
If you plan to spend money your business makes for personal
reasons, do it by paying yourself a “salary” from the business
account rather than by charging personal purchases directly to
your business bank accounts. Charging personal purchases to a
business account could raise suspicions of embezzlement or
fraud, and you don’t want that!
Now that you have a business bank account, you are eligible

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