We can assist in obtaining a Tax ID Number, A.K.A an EIN Number and get you set up.
Limited Partnership, LP
Limited Liability Partnership, LLP.
*One of the above business incorporation selections will need to be completed before GoFlex can start improving your business credit profile.
The benefits of separating personal and business credit.
A business has a much greater capacity to borrow than an individual using personal credit. As a creditworthy business, your company will to qualify for financing based on factors strictly related to the business. Without building business credit, you must continue to rely on your own personal credit. The utilization of business credit will allow the owner to eliminate the use of personal credit and avoid the annoying personal credit checks. This prevents a business owner from having to co-mingle personal credit, personal debts, and personal assets with your company.
“If your using personal credit to fund business expenses, you’re not properly using the business or its incorporated status as it was designed”
“GoFlex Credit provides a complete compliance review for your current business to maximize its credit profile and professional image”
“Business credit is transferable, making it very attractive for potential lenders, buyers, and investors”
The Benefits of Incorporation
Whether you’re just considering a new business idea or already act as a sole proprietorship or general partnership, you may wonder if incorporating your business is right for you. Discover why the benefits of incorporation can outweigh any downsides.
- Secure your assets, gain tax breaks. Corporation owners enjoy limited liability protection, and are typically not personally responsible for business debts. So, creditors can’t pursue your home or car to pay business debts. Another plus: corporations often gain tax advantages, writing off such things as health insurance premiums, savings on self-employment taxes, and life insurance.
- Grow your corporation for now—and the future. Incorporating bolsters credibility, and may help you reach potential new customers and partners. And while you can’t live forever—your corporation can. Even if an owner dies or sells interest, the corporation still exists.
- Easy transfer and faster funds. Corporation ownership can be easily transferable (with some restrictions on S Corporations. Capital can be raised more easily through the sale of stock. Another advantage is that many banks prefer handling loans with incorporated borrowers.
- Ready for retirement. Retirement funds and qualified plans, like a 401(k), can be easier to establish.
Corporations do have some potential disadvantages, including:
- Double taxation. C Corporations are subject to double taxation of corporate profits when income is distributed as dividends. This can be avoided by electing S corporation tax status with the IRS.
- Ongoing fees. You must file articles of incorporation with the state, plus applicable fees. Many states impose ongoing fees—which are steeper for a corporation than for a sole proprietorship or general partnership.
- More record keeping. Corporations must follow initial and annual record-keeping requirements—which Sol Proprietorship’s general partnerships and limited liability companies (LLCs) avoid.
Employer Identification Number
The employer identification number or EIN, also often called the federal tax identification number, is the number used by the Internal Revenue Service (IRS) to identify a business. It is basically a Social Security Number for a business, and it must be included on all tax filings a business makes.
If you operated your business as a sole proprietorship or general partnership, your EIN was your Social Security Number. When you incorporate, or form a limited liability company (LLC), you must apply to receive a new number from the IRS.
In order to obtain an EIN, Form SS-4 must be completed and filed with the IRS. Certain states also require corporations and LLCs to obtain a state tax identification number. To learn if your state requires this, you should contact your state taxation authority.
“As a practical matter if your using personal credit to fund business expenses you’re
not properly using the business or its incorporated status as it was designed”
GoCredit ensure that the required professional compliance items are filed. Our program will guide you in building a strong business credit profile by obtaining strategic relationships with vendors, creditors and lender depending on your company’s needs. The GoCredit platform produces the very best profile for your new or existing business with all major credit repositories resulting in unsecured business credit.