hey what's up you guys this is Sam Kwak one of the Kwak Brothers real estate
investor and entrepreneur and chances are you want to start building your
business credit but you're unsure on what the first steps are and how to
actually get started so in this video we're gonna go and take a deep dive of
the first step of building your business credit and at the end of the video I'll
leave you guys with a free gift to help you build your business credit even
faster
alright so you want to build your business credit but you're really unsure
on how to get started because of the overwhelming amount of information out
there about business credit and it could easily be said that there are 30 to 40
steps in completely building your business credit but instead of going
through all the steps we're gonna go and focus on the very first step of building
your business credit because I really want you guys to have that momentum and
the confidence to finish the rest of the steps of building your business credit
like there's a popular saying how to eat an elephant one bite at a time so in
this video we're gonna go in and take the one bite at a time approach of
building your business credit now the very first thing you do when it comes to
building your business credit is to click the like button in this video as
it does help us out with our YouTube algorithm but seriously though if you
can help us blow up this video on YouTube we can go and create more videos
about business credit in the near future okay so the real first step of building
your business credit is to have your legal entity set up now your legal
entity is your corporation your LLC your LLP and my recommendation is to go talk
to an attorney about which legal entity is the best fit for you now this does
mean that you have to go and talk to an attorney and pay a little bit of fee for
that but it's gonna pay off in the long run because if you choose the long wrong
legal entity and you go down the road and build your business credit you may
have to start all over and come back and fix a mistake and it's gonna cost a lot
of time and energy and nobody wants that so make sure you go and set up your
legal entity the right way the first time and that involves in talking to an
attorney about determining which legal entity
is the best fit for you and for your business because depending on your
business you may need a corporation or LLC and it all depends on what your
business does so be sure you talk to you an attorney about setting up your legal
entity it could just be a five to ten minute conversation so don't skip that
step okay with your legal entity also make sure you have all the supporting
documents or that legal entities so this is your operate your bylaws your EIN
which stands for employer identification number think of this as your social
security number but for your business so to file taxes for your business you're
gonna need your EIN to set up a bank account you're gonna need your yeah yeah
and of course to set up your business credit you're gonna need your young n so
you definitely don't want to skip that step either to get your EIN it's free
you go get it from the IRS website and it's usually about five to ten minutes
long if your attorney who's setting up your legal entity includes that in your
package then of course your your attorney is gonna set that up for you in
your behalf ok so legal entities set up you got your supporting documents your
yeah and now it's time to make your business legitimate and what I mean by
legitimate you need a website so just a word of caution you don't need anything
fancy in the beginning don't need any bells and whistles don't get flashy
things right do all you need is a simple one-page website that details what your
business does your service may be a little bio about who you are
and your background that's all you need you do not need to spend two thousand
three thousand dollars on a website in fact a lot of times you can get a
website for free through services like Google Sites or Wix
if you're a little bit of a tax savvy like I am you can go ahead and set up a
free Amazon Web service account pay your annual $12 fee for your domain and you
can get a WordPress hosting virtually for free from the start so that's an
option you can go if you have a little bit of a budget when it comes to setting
up your website you can hire offshore or overseas virtual assistant to help you
build a site now I know some of you guys might be thinking that sounds a little
sketchy there but rest assured I personally use Virtual Assistants
every single day my business to get my business along the way and a lot of
these people from countries like Philippines and India they're very
talented when it comes to building websites and they could do it for very
very low cost so that's something that you guys can go in and do as an option
and where I get my virtual assistants I get them from upwork.com
and I'll leave that link down below in the description set the description
section so that all we have to do is just click the button and you're there
ok so you got your website set up now it's time to get your business phone
number and this is separate from your personal phone number and you are gonna
want to have a separate business phone number for privacy sake as well as
making sure that you have you know your schedule protected now with your
business phone number you can get a free business phone number from Google Voice
and if you have a gmail account well congratulations now you have a Google
Voice account as well so with Google Voice what's really nice is that you can
make calls and receive text messages for free and later down the road if you
choose to upgrade your services to more of a paid service you can go ahead and
transfer your Google Voice phone number to a paid service version of the phone
numbers so it's really nice flexible and it's free and it's great way to get
started so go and get your Google Voice number setup doesn't againt doesn't have
to be elaborate or fancy or sophisticated keep it simple and get
your Google Voice number to get started now the next step is little tricky as
you're gonna need a separate business address and I know a lot of you guys are
just getting started from your home your bedroom your basement garage or even a
dorm room so it may be a challenge for you to get a separate business address
because not many of us have that luxury of having a separate office space but
luckily there are businesses that offer a service called virtual office or
virtual business address what this basically is is you pay this business a
monthly fee for basically you being able to use their business address in a unit
number and basically this is your business address so this is a great
temporary solution until you get your business up and running your profitable
and then later on you can get a business office and that will be your
business address but for the time being because you need a separate business
address a virtual address is a great solution for you get started and it
doesn't cost a whole lot of money to do it
now I know there's a lot of talks about getting a peel box but unfortunately a
lot of the creditors and lenders want to see an actual physical address not a p.o
box so unfortunately a peel box may not be all that useful when it comes to
building your business credit so you are gonna need that physical separate
business address from services like a virtual address now the next step is
completely optional but this can help when it comes to increasing the odds of
getting business credit which is getting a fax number now a lot of times today
you can get an online fast number instead of having to actually have a
physical fax machine you can get an online fast number that's attached to
your email which is very convenient so this service typically goes anywhere
between five to twenty dollars a month depending on how sophisticated of a
software you use but you can get a virtual fast number and it can help with
increasing the odds of approval rates and success with business credit okay so
we got your business entity got your EIN website phone number address fax fax
number the whole nine yards now we need what's called a Duns number Duns number
is issued from a bureau called dun & bradstreet which is a company like
Experian Equifax and TransUnion the exception is that dun & bradstreet is
specifically for business credit now getting Duns number is free okay
remember that it's free because there's gonna be services out there then they
say hey you need to pay us ninety dollars to get a Duns number or you may
have to pay thirty bucks to get a Duns number completely untrue now if you do
want more of an expedited service you can pay a fee to get your Duns number
pretty much instantly but to get a Duns number it's it's actually free right you
can wait two three weeks you'll get an email from dun & bradstreet and you'll
get your Duns number now there are other services that may help you build your
business credit but getting Duns number is is free okay just let let's leave it
at that all right one of the final step is to register your business with four
one one this is often the most forgotten steps and a lot of people skip the step
and this is devastating if you don't do this
so registering with 4:01 may sound you know old-school or archaic but this is a
required step to help you build your business credit so what I'm gonna do is
I'm gonna go and leave the link to register your business with 401 down
below in the description section alright to do that click that link and register
your business in 401 now what may actually help even more is to list your
business with Google business with Yelp and different listing sites that are out
there so that your business is public and it can be found and you know your
business is out there for people to search so make sure you register your
business with 401 that's required as an option you can go ahead and list your
business on Google as well as on Yelp you can also do it on bing all these
different search engines you can go ahead and register your business in
those different search engines out there okay so that every step along the way
that we just talked about has one thing in common and that is to establish
legitimacy of your business so getting a business phone number business address
all these things add to the fact that your business is real so anything that
you can do to make your business more legitimate more real more public more
searchable can help you with increasing the odds of building your business
credit and a success rate of building your business credit so like I mentioned
in the beginning of this video I'm gonna go ahead and leave the free gift with
you guys the free gift is a checklist to help you check off different steps in
building your business credit it's about 27 pages long so you guys can go and
download that the download link will be down below in the link description below
and also leave it on the comment section so that you do not miss the download
link go and download that it's absolutely free it's my gift to you guys
for checking out this video and if you feel like this video is helpful and
valuable to you in any way feel free to subscribe and click like on this video
it does help us a lot that once again with the YouTube algorithm and hit the
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business credit about real estate finance and how to make money in general
so guys thank you so much for tuning in and watching this video
till next time I'll see you guys in another video