Question: I incorporated my business in 2010 but have had my EIN since 2007 for self-employed. When I incorporated I went into Duns & Bradstreet put in company name I got my Duns Number very quick. When a rep called he told me I did it for my personal credit but I used my company name on everything and of course he wants money to split my business from my personal credit.
Can I do this on my own if I already have a Duns Number? Should I try to open a credit card by using the Duns Number or EIN?
Answer: Incorporating does not mean you are ready to apply for business credit without a personal guarantee if you have not completed all steps correctly.
Applying for business credit using your DUNs Number and Employer Identification Number only is how you begin to separate your business credit from your personal credit. Most business credit applications ask for EIN and DUNs Numbers. But some creditors, especially for major credit cards, require a personal guarantee for new businesses and there may be no way to get around it if that is their condition for credit.
Your problem with Dun & Bradstreet may exist with your EIN. You stated “I incorporated my business in 2010” and you also stated you’ve had your “EIN since 2007” for self-employed. But according to the IRS sole proprietors need to obtain a new EIN if you incorporate.
You are trying to establish business credit using an EIN for self-employed status. Businesses need a new EIN when their ownership or structure changes. If you want to establish business credit separate from personal credit you cannot have an incorporated credit file along with a self-employed credit profile. You’ve got to choose one status and everything must match that status across the board.
Your DUNs and EIN number can establish business credit without purchasing Dun & Bradstreet products. I suggest you read “How to Establish Business Credit Separate from Personal Credit” to find out how it is done. It is a guide that will get you started with establishing business credit separate from personal credit and includes how to establish a Dun & Bradstreet credit profile without purchasing their credit builder products. Good luck to you.