In order to get into a relationship with a factoring company you need to have a commercial entity. Either a C-corp, S-corp, LLC, or variation of these. The laws governing lending to an individual are different than lending to a company. So we need you to be a company. You need to visit 2 places, each will supply you with plenty of good information.
The first is your State website. Go to a search engine and put in the name of your state and the word “government†which will get you to a link like www.maryland.gov. Now you need to look around for information on Starting a New Business. After learning about what you need to do, you will have to find the Forms section and get samples of a document that will enable you to Form a Company. You will create the form and mail it in according to the instructions. You may also hire an attorney to do this for you, and you should get a C.P.A. to be your accountant and get their advice – first.
The second place you will need to go is www.irs.gov in order to apply for your new Employer Identification Number (EIN). Again the IRS site has plenty of thorough information helping you start a new business. It even breaks down the differences of the different forms of business we mentioned at the top.
As a bonus, if you haven’t named your company yet, you might find a “who is†site and see who else might already be using the name. If the name is available, you can choose it, and buy the URL to secure it.
Whenever you are considering starting a new business make sure you always talk to some professional business people to get their advice. A little good advice at the beginning will save you a lot of time and money in the long run.