Creating an LLC, buying and capitol

I found the following after some research. May be helpful to others.

Source: http://www.llc-made-easy.com/business-credit.html
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Five Steps to Building Business Credit
What you need to do is build a credit history for your business just like you did for yourself, personally. Check out these five tips to establishing business credit:

1. Open a credit card in the business's name. Yes, you will be personally liable on your first business credit card. It's almost unheard of for a brand-new company to get a credit card without the owner personally signing and guaranteeing payment.

Only use the card for purchases you know the business can pay. For example, toner and paper for your printer and other office supplies. In other words, small purchases. Use it every month, because this will establish a consistent history. Always make the minimum payment on time (you're trying to build a good credit history).

2. Get a D&B number and account. D&B (Dun and Bradstreet) is a essentially a credit reporting company for businesses. They'll ask for a lot of data, some of which you need to give (like name and address), and some you don't (detailed financial statements).

3. Pay all your suppliers on time. This is pretty self-explanatory. Don't string suppliers out longer than agreed to. If the contract is 60 days, pay by day 60.

4. Make sure your suppliers report your good behavior to D&B. Most companies only go to D&B when their customers don't pay (D&B does collections). Encourage them to report your good payment history as well.

5. Ask your bank for a credit card without a personal guarantee. If you have too small a bank balance, you probably won't get one. However, if you have a decent bank balance and you are willing to accept a lower credit line, then you can get a card in the business' name without a personal guarantee. This is the first taste of business credit, and it will only grow from here.

From eHow, I found the following reading succinct and full of informative direction. The answer to the original question (how to build credit with a new LLC seems to be located in section 2 (two) below. I hope this helps someone else!
-------
(snip)
A) Conceive, develop and structure your business.
B)Obtain a Federal EIN (Employer Identification Number) from the IRS
C)Prepare all necessary forms, permits and licenses.
D)Various business licenses are needed to begin operation and to confer legitimacy of your business.
F)Obtain a Dun & Bradstreet number for your corporation or LLC
G)Open business accounts with various creditors for a NET 30 account. A NET 30 account is simply a vendor who will provide products to your company, invoice your company and expect payment from your company within 30 days.

We recommend ordering from 8 vendors that will issue your company products and services and expect payment within 30 days because although your company only needs 4 vendors to report to Dun and Bradstreet to obtain a PAYDEX, sometimes companies may not report your payment right away. So with applying to 8 vendors, your chances of 4 of them reporting right away is greater.)
It's best to obtain your Dun and Bradstreet number or inquire about about your business credit report online.

-------
Source: http://www.ehow.com/how_2131067_begin-building-business-credit.html
---------------

Introduction
Began building business credit for your company. There are several way to begin building business credit which is essential for a successful business. Our Procedure is a simple and uncomplicated method of building business credit.
Instructions
Difficulty: Moderately Easy
Things You'll Need

* A Business
* A desire to expand that business
* Willingness to learn
* 30-120 days to build your business credit

Steps

1
Step One
Business credit—The Why:
The Importance of a Business Credit Rating
Good Credit is Good Business!
Whenever you apply for business credit, your creditor will want to check your business credit rating. Your business credit rating helps a creditor determine whether or not to give you a business credit card or extend a business credit line. That’s why a good business credit rating is as important to your company as your personal credit rating.
Your business’ credit gets rated by a variety of companies, including Experian and Dun & Bradstreet. The factors that go into your business credit are items that can include the following:
Your Company’s starting date
Number of employees
Whether you rent or lease your space
Information about your profitability, solvency and efficiency ratios.
This is how a creditor weighs whether or not you are a good risk for business credit. Your best interest is in the creditor’s best interest. Both of you want your business to succeed.
Once a minimum of (usually) 4 vendors are reporting your business company payment history to Dun and Bradstreet via your DUNS number, Dun and Bradstreet will assign a PAYDEX SCORE to your company. A PAYDEX score is a credit score for a business (similar to a FICO score for a individual).

2
Step Two
Business credit—The How:

There is a step by step process recommended by Analytics Business Inc. to build your Business Credit. Please contact Analytics Business, Inc (www.AnalyticsBusinessInc.com) for more information and/or further instructions on how to build on the following steps listed below.
A) Conceive, develop and structure your business. B)Obtain a Federal EIN (Employer Identification Number) from the IRS (Analytics Business Inc can assist your company with this process. C)Prepare all necessary forms, permits and licenses. D)Various business licenses are needed to begin operation and to confer legitimacy of your business. (Analytics Business Inc can assist your company with this process.) F)Obtain a Dun & Bradstreet number for your corporation or LLC (Analytics Business Inc can assist your company with this process). G)Open business accounts with various creditors for a NET 30 account. A NET 30 account is simply a vendor who will provide products to your company, invoice your company and expect payment from your company within 30 days.
We recommend ordering from 8 vendors that will issue your company products and services and expect payment within 30 days because although your company only needs 4 vendors to report to Dun and Bradstreet to obtain a PAYDEX, sometimes companies may not report your payment right away. So with applying to 8 vendors, your chances of 4 of them reporting right away is greater.)
It's best to obtain your Dun and Bradstreet number or inquire about about your business credit report online. If you’re interested in inquiring about your number, do it online or contact ANALYTICS BUSINESS, INC. and we will take care of this for you.

We STRONGLY recommend that all NET 30 vendors are paid before the last day of the month.
(Example: Ordered pens from QUILL.com on November 8, 2007; the bill isn’t due until December 8, 2007; Bill SHOULD BE PAID no later than November 28, 2007.)
The reason is you want Quill to report your November 2007 payment history by the first weekend in December. Waiting until December 8, 2007 to pay the bill would result in the payment being reported as paid in January, 2008 (however, this is acceptable, but you are trying to get your PAYDEX number as soon as possible is the reason for the quick payment by you.)
Once Steps 1-6 are complete you can then build on those credit relationships and use them as references to obtain larger and larger accounts.

3
Step Three
Fair Credit Act

Obtaining credit can be a difficult process for any business owner and especially for first-time borrowers. But keep in mind that different lenders have different standards; if you did not meet the standards of a particular institution, you may still qualify elsewhere.
If you have a full understanding of why the initial lender didn’t approve your application, with time and more attention to these areas, you can improve your proposal as a result and may succeed the next time you apply.
Women and minority applicants may be concerned that they have received less favorable treatment which is unrelated to their creditworthiness.
All business applicants have certain protections against unlawful discrimination under the Equal Credit Opportunity Act.
The Act makes it illegal for lenders to deny your loan application, discourage you from applying for a loan, or give you less favorable terms than another applicant because you are a woman or a minority group member.

Continued on next page...Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time borrower. By doing so, you’d be getting the loan package in shape to make it easier for the lender to reach a favorable credit decision.
There are some business support groups whose members could counsel you on how your package looks. A qualified counselor might even discover that you really don’t need more money, and instead suggest better inventory control, improved marketing techniques, or other changes that could actually solve your growth problems.
One source of counseling available to small businesses is the Service Corps of Retired Executives (SCORE), which is sponsored by the U.S. Small Business Administration. Others might include accountants and financial advisers.
Once you are satisfied that your proposal is in good shape to present to a lender, set up an appointment to discuss your application. You will find that the lender can also be an excellent source of business and financial counsel.

4
Step Four
Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time borrower. By doing so, you’d be getting the loan package in shape to make it easier for the lender to reach a favorable credit decision.
There are some business support groups whose members could counsel you on how your package looks. A qualified counselor might even discover that you really don’t need more money, and instead suggest better inventory control, improved marketing techniques, or other changes that could actually solve your growth problems.
One source of counseling available to small businesses is the Service Corps of Retired Executives (SCORE), which is sponsored by the U.S. Small Business Administration. Others might include accountants and financial advisers.
Once you are satisfied that your proposal is in good shape to present to a lender, set up an appointment to discuss your application. You will find that the lender can also be an excellent source of business and financial counsel.
Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time borrower. By doing so, you’d be getting the loan package in shape to make it easier for the lender to reach a favorable credit decision.
There are some business support groups whose members could counsel you on how your package looks. A qualified counselor might even discover that you really don’t need more money, and instead suggest better inventory control, improved marketing techniques, or other changes that could actually solve your growth problems.
One source of counseling available to small businesses is the Service Corps of Retired Executives (SCORE), which is sponsored by the U.S. Small Business Administration. Others might include accountants and financial advisers.
Once you are satisfied that your proposal is in good shape to present to a lender, set up an appointment to discuss your application. You will find that the lender can also be an excellent source of business and financial counsel.
Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time b

5
Step Five
ADVANTAGES OF FORMING A CORPORATION
• Liability: A corporation exists as a separate legal entity from your personal life. Any debts or lawsuits are incurred by the company, not the owner, thereby protecting the owner from loss of home, car or future earnings.
• Taxation: Another main benefit to incorporating is the taxation of a company. Corporations are often taxed at a lower rate and have better taxable benefits.
• Expense: A corporation (either “C” or “S”) is oftentimes more cheaper to form than a LLC
• Raising Money: Financing a small business as a sole proprietorship or partnership can be difficult. A corporation can sell shares of the company and raise money easier than other business structure types. With regard to ease of financing, the C corporation is generally considered to have the most financing flexibility due to the variety of forms of investment participation available. A “C” corporation can issue various types of equity instruments including, common and preferred stock, stock warrants, and stock options. In addition, the corporation can issue bonds, which may or may not be convertible into equity. This form of financing is not available to the other forms of businesses (such as a LLC or sole proprietorship).
• Business Credit: A corporation/LLC can build a business credit profile separate from a personal individual profile
• Selling the Business: A non-corporate business is hard to valuate properly. A business corporation value will be based on the business (shares of stock), not the owner, therefore making it easy to assign value to and sell the company
• Perpetual Existence: The corporation, as a separate entity will continue to exist regardless of the death, withdrawal, or bankruptcy of one of its shareholders.

DISADVANTAGES OF FORMING A CORPORATION
• Expense: Maintaining a corporation requires more time and money than forming other business structures.
• Corporate profits: May be subject to higher overall taxes since the government taxes profits at the corporate level (via Dividends) and again at the individual level (as income), if such profits are distributed to the shareholders. Furthermore, a corporation may not deduce from its business income any dividends it pays to its shareholders
• Regulations: Federal and state laws have strict record keeping requirements.

6
Step Six
LLC FORMATION ADVANTAGES

• No requirement of an annual general meeting for shareholders.
• Much less administrative paperwork and recordkeeping than a corporation.
• Pass-through taxation (i.e., no double taxation), unless the LLC elects to be taxed as a corporation.
• Limited liability, meaning that the owners of the LLC, called "members," are protected from liability for acts and debts of the LLC.
• Profits are taxed personally at the member level, not at the LLC level.
• LLCs in most states are treated as entities separate from their members.
• Owners have limited personal liability for business debts even if they participate in management.
• Profit and loss can be allocated differently than ownership interests.
• IRS rules now allow Limited Liability Corporation (LLC) to choose between being taxed as partnership or corporation.

LLC FORMATION DISADVANTAGES

• Many states, including (Alabama, California, Kentucky, New Jersey, New York, Pennsylvania, Tennessee, and Texas), levy a franchise tax or capital values tax on LLCs.

• This franchise or business privilege tax is the "fee" the LLC pays the state for the benefit of limited liability. The franchise tax can be an amount based on revenue, an amount based on profits, or an amount based on the number of owners or the amount of capital employed in the state, or some combination of those factors, or simply a flat fee, as in Delaware.
• It may be more difficult to raise financial capital for an LLC as investors may be more comfortable investing funds in the better-understood corporate form with a view toward an eventual IPO.
• It may also be much more difficult to obtain business credit (business credit cards, business loans, etc) for a LLC than a corporation.
• The principals of LLCs use many different titles -- e.g., member, manager, managing member, managing director, chief executive officer, president, partner. As such, it can be difficult to determine who actually has the authority to enter into a contract on the LLC's behalf.

7
Step Seven
The above article is just one of several suggested means to begin building your business credit for your company. If you would like more information or just want to chat about your business, feel free to contact the staff at Analytics Business Inc (www.AnalyticsBusinessInc.com) and we would be glad to hear from you!

From eHow, I found the following reading succinct and full of informative direction. The answer to the original question (how to build credit with a new LLC seems to be located in section 2 (two) below. I hope this helps someone else!
-------
(snip)
A) Conceive, develop and structure your business.
B)Obtain a Federal EIN (Employer Identification Number) from the IRS
C)Prepare all necessary forms, permits and licenses.
D)Various business licenses are needed to begin operation and to confer legitimacy of your business.
E)Obtain a Dun & Bradstreet number for your corporation or LLC
F)Open business accounts with various creditors for a NET 30 account. A NET 30 account is simply a vendor who will provide products to your company, invoice your company and expect payment from your company within 30 days.

We recommend ordering from 8 vendors that will issue your company products and services and expect payment within 30 days because although your company only needs 4 vendors to report to Dun and Bradstreet to obtain a PAYDEX, sometimes companies may not report your payment right away. So with applying to 8 vendors, your chances of 4 of them reporting right away is greater.)
It's best to obtain your Dun and Bradstreet number or inquire about about your business credit report online.

-------
Source: http://www.ehow.com/how_2131067_begin-building-business-credit.html
---------------

Introduction
Began building business credit for your company. There are several way to begin building business credit which is essential for a successful business. Our Procedure is a simple and uncomplicated method of building business credit.
Instructions
Difficulty: Moderately Easy
Things You'll Need

* A Business
* A desire to expand that business
* Willingness to learn
* 30-120 days to build your business credit

Steps

1
Step One
Business credit—The Why:
The Importance of a Business Credit Rating
Good Credit is Good Business!
Whenever you apply for business credit, your creditor will want to check your business credit rating. Your business credit rating helps a creditor determine whether or not to give you a business credit card or extend a business credit line. That’s why a good business credit rating is as important to your company as your personal credit rating.
Your business’ credit gets rated by a variety of companies, including Experian and Dun & Bradstreet. The factors that go into your business credit are items that can include the following:
Your Company’s starting date
Number of employees
Whether you rent or lease your space
Information about your profitability, solvency and efficiency ratios.
This is how a creditor weighs whether or not you are a good risk for business credit. Your best interest is in the creditor’s best interest. Both of you want your business to succeed.
Once a minimum of (usually) 4 vendors are reporting your business company payment history to Dun and Bradstreet via your DUNS number, Dun and Bradstreet will assign a PAYDEX SCORE to your company. A PAYDEX score is a credit score for a business (similar to a FICO score for a individual).

2
Step Two
Business credit—The How:

There is a step by step process recommended by Analytics Business Inc. to build your Business Credit. Please contact Analytics Business, Inc (www.AnalyticsBusinessInc.com) for more information and/or further instructions on how to build on the following steps listed below.
A) Conceive, develop and structure your business. B)Obtain a Federal EIN (Employer Identification Number) from the IRS (Analytics Business Inc can assist your company with this process. C)Prepare all necessary forms, permits and licenses. D)Various business licenses are needed to begin operation and to confer legitimacy of your business. (Analytics Business Inc can assist your company with this process.) F)Obtain a Dun & Bradstreet number for your corporation or LLC (Analytics Business Inc can assist your company with this process). G)Open business accounts with various creditors for a NET 30 account. A NET 30 account is simply a vendor who will provide products to your company, invoice your company and expect payment from your company within 30 days.
We recommend ordering from 8 vendors that will issue your company products and services and expect payment within 30 days because although your company only needs 4 vendors to report to Dun and Bradstreet to obtain a PAYDEX, sometimes companies may not report your payment right away. So with applying to 8 vendors, your chances of 4 of them reporting right away is greater.)
It's best to obtain your Dun and Bradstreet number or inquire about about your business credit report online. If you’re interested in inquiring about your number, do it online or contact ANALYTICS BUSINESS, INC. and we will take care of this for you.

We STRONGLY recommend that all NET 30 vendors are paid before the last day of the month.
(Example: Ordered pens from QUILL.com on November 8, 2007; the bill isn’t due until December 8, 2007; Bill SHOULD BE PAID no later than November 28, 2007.)
The reason is you want Quill to report your November 2007 payment history by the first weekend in December. Waiting until December 8, 2007 to pay the bill would result in the payment being reported as paid in January, 2008 (however, this is acceptable, but you are trying to get your PAYDEX number as soon as possible is the reason for the quick payment by you.)
Once Steps 1-6 are complete you can then build on those credit relationships and use them as references to obtain larger and larger accounts.

3
Step Three
Fair Credit Act

Obtaining credit can be a difficult process for any business owner and especially for first-time borrowers. But keep in mind that different lenders have different standards; if you did not meet the standards of a particular institution, you may still qualify elsewhere.
If you have a full understanding of why the initial lender didn’t approve your application, with time and more attention to these areas, you can improve your proposal as a result and may succeed the next time you apply.
Women and minority applicants may be concerned that they have received less favorable treatment which is unrelated to their creditworthiness.
All business applicants have certain protections against unlawful discrimination under the Equal Credit Opportunity Act.
The Act makes it illegal for lenders to deny your loan application, discourage you from applying for a loan, or give you less favorable terms than another applicant because you are a woman or a minority group member.

Continued on next page...Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time borrower. By doing so, you’d be getting the loan package in shape to make it easier for the lender to reach a favorable credit decision.
There are some business support groups whose members could counsel you on how your package looks. A qualified counselor might even discover that you really don’t need more money, and instead suggest better inventory control, improved marketing techniques, or other changes that could actually solve your growth problems.
One source of counseling available to small businesses is the Service Corps of Retired Executives (SCORE), which is sponsored by the U.S. Small Business Administration. Others might include accountants and financial advisers.
Once you are satisfied that your proposal is in good shape to present to a lender, set up an appointment to discuss your application. You will find that the lender can also be an excellent source of business and financial counsel.

4
Step Four
Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time borrower. By doing so, you’d be getting the loan package in shape to make it easier for the lender to reach a favorable credit decision.
There are some business support groups whose members could counsel you on how your package looks. A qualified counselor might even discover that you really don’t need more money, and instead suggest better inventory control, improved marketing techniques, or other changes that could actually solve your growth problems.
One source of counseling available to small businesses is the Service Corps of Retired Executives (SCORE), which is sponsored by the U.S. Small Business Administration. Others might include accountants and financial advisers.
Once you are satisfied that your proposal is in good shape to present to a lender, set up an appointment to discuss your application. You will find that the lender can also be an excellent source of business and financial counsel.
Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time borrower. By doing so, you’d be getting the loan package in shape to make it easier for the lender to reach a favorable credit decision.
There are some business support groups whose members could counsel you on how your package looks. A qualified counselor might even discover that you really don’t need more money, and instead suggest better inventory control, improved marketing techniques, or other changes that could actually solve your growth problems.
One source of counseling available to small businesses is the Service Corps of Retired Executives (SCORE), which is sponsored by the U.S. Small Business Administration. Others might include accountants and financial advisers.
Once you are satisfied that your proposal is in good shape to present to a lender, set up an appointment to discuss your application. You will find that the lender can also be an excellent source of business and financial counsel.
Who can help if you’re turned down.

Before you approach a lender, you might want to seek the advice of another, more experienced “set of eyes” to review your business proposal, particularly if you are a first-time b

5
Step Five
ADVANTAGES OF FORMING A CORPORATION
• Liability: A corporation exists as a separate legal entity from your personal life. Any debts or lawsuits are incurred by the company, not the owner, thereby protecting the owner from loss of home, car or future earnings.
• Taxation: Another main benefit to incorporating is the taxation of a company. Corporations are often taxed at a lower rate and have better taxable benefits.
• Expense: A corporation (either “C” or “S”) is oftentimes more cheaper to form than a LLC
• Raising Money: Financing a small business as a sole proprietorship or partnership can be difficult. A corporation can sell shares of the company and raise money easier than other business structure types. With regard to ease of financing, the C corporation is generally considered to have the most financing flexibility due to the variety of forms of investment participation available. A “C” corporation can issue various types of equity instruments including, common and preferred stock, stock warrants, and stock options. In addition, the corporation can issue bonds, which may or may not be convertible into equity. This form of financing is not available to the other forms of businesses (such as a LLC or sole proprietorship).
• Business Credit: A corporation/LLC can build a business credit profile separate from a personal individual profile
• Selling the Business: A non-corporate business is hard to valuate properly. A business corporation value will be based on the business (shares of stock), not the owner, therefore making it easy to assign value to and sell the company
• Perpetual Existence: The corporation, as a separate entity will continue to exist regardless of the death, withdrawal, or bankruptcy of one of its shareholders.

DISADVANTAGES OF FORMING A CORPORATION
• Expense: Maintaining a corporation requires more time and money than forming other business structures.
• Corporate profits: May be subject to higher overall taxes since the government taxes profits at the corporate level (via Dividends) and again at the individual level (as income), if such profits are distributed to the shareholders. Furthermore, a corporation may not deduce from its business income any dividends it pays to its shareholders
• Regulations: Federal and state laws have strict record keeping requirements.

6
Step Six
LLC FORMATION ADVANTAGES

• No requirement of an annual general meeting for shareholders.
• Much less administrative paperwork and recordkeeping than a corporation.
• Pass-through taxation (i.e., no double taxation), unless the LLC elects to be taxed as a corporation.
• Limited liability, meaning that the owners of the LLC, called "members," are protected from liability for acts and debts of the LLC.
• Profits are taxed personally at the member level, not at the LLC level.
• LLCs in most states are treated as entities separate from their members.
• Owners have limited personal liability for business debts even if they participate in management.
• Profit and loss can be allocated differently than ownership interests.
• IRS rules now allow Limited Liability Corporation (LLC) to choose between being taxed as partnership or corporation.

LLC FORMATION DISADVANTAGES

• Many states, including (Alabama, California, Kentucky, New Jersey, New York, Pennsylvania, Tennessee, and Texas), levy a franchise tax or capital values tax on LLCs.

• This franchise or business privilege tax is the "fee" the LLC pays the state for the benefit of limited liability. The franchise tax can be an amount based on revenue, an amount based on profits, or an amount based on the number of owners or the amount of capital employed in the state, or some combination of those factors, or simply a flat fee, as in Delaware.
• It may be more difficult to raise financial capital for an LLC as investors may be more comfortable investing funds in the better-understood corporate form with a view toward an eventual IPO.
• It may also be much more difficult to obtain business credit (business credit cards, business loans, etc) for a LLC than a corporation.
• The principals of LLCs use many different titles -- e.g., member, manager, managing member, managing director, chief executive officer, president, partner. As such, it can be difficult to determine who actually has the authority to enter into a contract on the LLC's behalf.

7
Step Seven
The above article is just one of several suggested means to begin building your business credit for your company. If you would like more information or just want to chat about your business, feel free to contact the staff at Analytics Business Inc (www.AnalyticsBusinessInc.com) and we would be glad to hear from you!