My Business Credit Journey to 1,000,000

I know that many people will like to establish more than one business in order to have more business credit. More credit simply means more leverage, and when used correctly, it can be a great thing. The problem is that if you are not careful, having multiple businesses at one address can raise red flags. I never considered blogging about this before until today when 2 readers asked the same question.

I personally have more than 20 corporations in my name but this is what I do. There are a few little rules that I use when opening a new business.

1. Try not to have more than one business as the same address with the same owner(s). If you are using your home address, put the second and third corporations in your wife’s, kid’s names.(anyone else)

2. When using one address you can use suites. So corporation 1 will have 2345 Lovely Ln, suite 232, Jingle Town AR. This will only work if you address is not already a suite. If it is, you can use suite 212a and suite 212 c.(thats just an example).

3. Try not to have more than three addresses at the same address. Remember, the problem only comes in when you apply for the same account with more than one company. U do not want to be applying for 20 staples accounts with 20 corps at the same address in one year.

- mike

build business credit in 2009