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I want to form LLC and also I want to get a merchant account under my new business name.

Silver Spring, MD |

About a year ago I started up a business (Online home based business) and opened an online merchant account using my social security number and my personal bank account (no business account)
My business was going good till i had charge backs at the end of the first year and the merchant provider shut down my account without the notification and later after few months they put me on MATCH list or Terminated Merchant file. I found about it when i was applying for a new merchant account they said they can't approve me because my business is on MATCH list.
Now my question is: Is it possible that i can get a new merchant account if i incorporate (LLC) my new business (entirely new business, different business then the previous one, new business name)

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Attorney answers 2


Yes, and no. An LLC will have its own EIN to replace your SSN for taxpayer identification purposes, but when you have a new company with little track record, you will find few sources of credit willing to issue credit solely in the name of the company; rather, they will require your personal information and guaranty on all credit applications, which will call up the MATCH issue. There are strategies which you can pursue, however, and there are even companies which advertise these services for a fee to get your company a Dunn and Bradstreet merchant rating, which is what would enable your company to operate without your personal credit history involved. Generally speaking, it takes time to build a credit rating sufficient to get a D&D rating which would then open the door to real credit and merchant accounts. You must register your company with D&D. You start small, get a retailer credit card account in just your company name with Staples, Office Depot, MicroCenter, Best Buy, Amazon, PayPals' Bill Me Later service, and the like. Buy something every month on their charge plate and immediately pay it off before you even get a bill or invoice. The D&D rating calculates your score based on how long it takes you to pay a debt from the date it is incurred, so waiting to pay an invoice by the due date actually can hurt you. Your score will go up much faster if you pay in advance of even receiving the billing invoice. After 6 months or more of doing this, your company may have a sufficient D&D rating to qualify for a regular bank credit card in the company name, or to qualify for other loans, such as a line of credit.


Rather than use your SS#, get a tax ID # for the new business and use that.