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Once you have your business up and running, you are going to want to start getting in the business credit system so that you can apply for new business credit cards. This is a bit of a multi-step process, but luckily it’s very straightforward and anyone can do it.

The first thing you are going to want to do is incorporate. You do not want your business to be a sole proprietorship, as that will expose you to a number of possible legal attacks. You are much better off incorporating your business under a C-corp, or forming a limited liability company. Each has their own strengths and weaknesses, and you may want to check with your colleagues or legal professionals before you set up your business entity so that you know which one is right for you.

You can then use the newly incorporated entity to register for an EIN; this is an identification number that is used on your tax return to identify your business (sort of like a business social security number). This process will require some state forms and some other procedures. When this is done, your business will need a dedicated phone line and a bank account with the business’s name, and it would be wise to set up a few merchant trade lines at this point. You can now register your business with a business credit bureau, like Dun & Bradstreet or Experian, and start building business credit.

Now you are ready to apply for a new business credit card. Business credit cards can be tricky to come by at first because most of them will want to see your personal credit score. If necessary, try getting a secured business credit card; this will require you to hold a savings account that your credit card company can view as collateral. This is an excellent way to secure a new business credit card and not run into any trouble with your personal credit.

Business credit cards are an excellent way to increase your credit standing and get a good hold on your financial future. Be sure to follow these steps and your business will be off to the right start!

This Business article was written by Mark Karavan on 1/7/2010