Part Two of Three

Legalizing Your Ebay Business Series

Many sole proprietors do not apply for an FEIN number as it is not a requirement to do so. However, there are several pros in doing do, such as:

* Obtaining business credit.

* Building business credit.

* Obtaining business loans

* Separate credit profile from your personal account

* Obtaining a business checking bank account, information to follow.

The link to apply for an FEIN and obtain other tax related information is located at the IRS Government website. Email me for help in finding the information.

The reason for applying for and building credit in the business name is simple. For one, it separates your business purchases from personal purchases thus reducing your paperwork. Also, businesses are able to obtain a higher credit line for purchases’ than an individual. Eventually, when (if) you expand your business, you may need this credit to rent or lease a brick and mortar store, or purchase a high ticket item, especially if your personal credit is less than stellar.

Along with applying for an FEIN, you will want to open a separate business account. Many simply open a separate personal account for their business, but this usually is not advised as you will not reap the benefits a business account will offer. To open a business checking account, you will need to find an account that fits your company’s needs. Some things to consider is the amount t of money you will retain in your account at all times, and how many checks you will be writing per month. Most business accounts do include an ATM/Debit card, so usually check writing is kept to a minimum.

Many banks offer a variety of benefits for business accounts, so it is wise to research the banks offers carefully. For instance, Bank of America will help you select a business checking account by asking you a series of questions. To gain an insight as to what kind of account you may need, check out Bank of America’s website and choose the small business account selector. This is not an endorsement for Bank of America, but they allow you to see what kind of account will suit your business needs. For help, please email me.

Cass of CassNCaboodle

Pround Olasa & Squaretrade Member.