How to Get Credit Utilizing My Business Tax ID Number

You can get a car loan using your EIN.

A business tax ID number is issued by the Internal Revenue Services (IRS) to businesses that need to file tax returns. The business tax ID number is also known as an Employer Identification number (EIN) or Federal Employer Identification Number (FEIN). If you want to utilize your business tax ID number to obtain business credit, use your EIN in place of your Social Security Number (SSN) when applying for business credit.

Instructions

1. Get a phone line in your business name. Many creditors require that you have a phone number in the same area where your business is located. Provide a physical address (not a P.O. Box).

2. Form a corporation or a Limited Liability Company (LLC). Apply for an Employer Identification Number (EIN) from the IRS. This will separate your personal credit history from your business credit history.

3. Register your company with Dun & Bradstreet, the major business credit bureau (see link in Resources).

4. Purchase products or set up trade lines with companies who report to Dun and Bradstreet. Most major companies do, but check before you buy.

5. Pay your bills as soon as you receive them. This will start to build your business credit. After a few months of being established and having a good credit history, you may be able to make larger purchases (like an auto) or apply for a business credit card.

Tips & Warnings

• Before you apply for large loans, pull your Dun & Bradstreet business credit report (sometimes called a PayDex score). The range of a business credit score is 0-100, with 100 being excellent and 0 being nonexistent. Above 70 is considered to be a "good" score although to get a large loan you should aim for "excellent" (over 90).

References

• IRS: Employer ID Numbers (EINs)
• Entrepreneur: The ABCs of Business Credit
• Capital Access Project: Building Business Credit Made Simple

Resources

• Dun and Bradstreet: DUNS Number