If you’re an entrepreneur getting your business off the ground, you might hear the term D-U-N-S Number mentioned. This number comes from Dun & Bradstreet — another name you might hear as well — which is a company that provides commercial data, analytics and insights for businesses. If you don’t recognize either of these terms, you should make yourself familiar, because they are closely associated with your business’s credit, creditworthiness and your ability to get a business loan. Read on to find out what a D-U-N-S Number is and why you should get one for your business.
What Is a D-U-N-S Number?
D-U-N-S stands for data universal numbering system. A D-U-N-S Number is a unique nine-digit number that Dun & Bradstreet uses to establish your company’s D&B file and identify businesses throughout the world. A D-U-N-S Number is important because it can be used to look up your business’s D&B Rating, which contains important information like your business creditworthiness. Other businesses and lenders often use this information in order to make a decision about working with your company or lending to it. There’s no charge to create your D-U-N-S Number.
A point of clarification is needed here. Often times businesses assume that their D-U-N-S Number is the same as their Employer Identification Number (EIN), which is issued by the IRS. Your company’s D-U-N-S Number is not the same as your company’s EIN, yet both are used for identification purposes.
How Can a D-U-N-S Number Help Your Business?
Getting a D-U-N-S Number can benefit your business in several ways. Here are some of the principal ways a D-U-N-S Number can help you:
Another key reason to get a D-U-N-S Number for your business is that, once you do, you get access to your PAYDEX score from Dun & Bradstreet. Your PAYDEX score is based on factors such as how quickly your business repays lenders, rather than your company’s financial standing like equity and net worth.
How to Get a D-U-N-S Number
Getting a D-U-N-S Number is very straightforward. You can apply on the Dun & Bradstreet website, where you’ll be asked the primary reason for registering for a D-U-N-S Number, address and contact information. Once you’ve applied, you’ll typically get a call from a D&B representative to assist you with the process and receive your D-U-N-S number within 30 days.
A very important point to take note of is that you’ll need to have your business established as a legal entity before you can get a D-U-N-S. This means you have to first decide on what business structure your company has, such as a limited liability company (LLC), C corporation, S corporation, sole proprietorship or partnership, and register your entity type with the state.
How Do I Look Up My D-U-N-S Number?Looking up your D-U-N-S Number is actually a good first step to take. This is because sometimes a business might already have a D-U-N-S Number if someone at your company already applied and registered for one. You can check to see if your company has a D-U-N-S by going to Dun & Bradstreet’s D-U-N-S Number Lookup page. You can also find another company’s D-U-N-S Number here as well.
And although the creation of DUNS number is pretty straightforward, you may want to look for a legal advice from the some of the best formation services or registered agent services out there. Here are some of them:
Proven Business Formation Services
This is a reliable company to consider when you want to designate a registered agent service for your business. Swyft Filings offers affordable payment packages that come with incredible features. Despite only being in business since 2015, their 100% positive reviews are speaking for themselves.
With 20+ years of experience and an A+ rating with the BBB, BizFilings is an established online formation service. Their nifty BizComply online tool keeps track of any important filing dates and compliance deadlines. BizFilings will take you through the whole process with their on-going support.
Compared to other services, SunDoc Filings offers volume discounts for multiple states and entities and just as good customer support. However, its base rate package is stripped of features and registered agent service is slightly higher priced than its competitors.
Inc Authority is one of the successful firm’s offering LLC formation services. If you are looking for cheaper services then Inc Authority could be the one for you. Service that make Inc Authority stand out from the rest is tax planning consultation. Taxes are a vital aspect of the business, and you should ensure you comply.
If you want to use a service with amazing customer report, MyCorporation may be the best choice. It is also perfect if you want an annual report service. Otherwise, you may consider hiring competition that offer registered agent service in their packages at a lower price.
The Bottom Line
Having a D-U-N-S Number is not a requirement for your business to operate. However, it is a very important piece of numerical information that identifies your company and, more importantly, is connected to your Dun & Bradstreet business credit profile. The chief importance of having a D-U-N-S Number is that it is integral to building and improving your business creditworthiness. When you go to lenders for financing or are looking for a supplier for your business, these companies will very likely use your D-U-N-S Number to learn about your business’s financial standing and credit history via your D&B Rating. Getting a D-U-N-S Number, therefore, is one of the first steps towards establishing a solid credit file for your business so that you can access more forms of funding and work with more businesses in the future.