Lesson 13 - Business Credit Approved

Lesson 13:
Business History Part 2
What business entity do you suppose I suggest for building
credit For those who live in and around the District of
Columbia (this includes those who live in Maryland and
Virginia), I suggest an LLC, NOT a corporation. For those of
you who do not live in and around the District of Columbia,
continue reading as the material below will apply to you, and
then read the section below that provides additional
instructions for those that live outside the District of
Columbia. The cost to obtain an aged LLC in the District of
Columbia is significantly less than a corporation.
You can select an aged business by finding the name of a
limited liability company and affiliating the personal guarantor
you select to the business. In so doing, you “marry” an aged
business with a personal guarantor that meets the banks’
approval guidelines.
To find an aged business entity, visit the website of
Washington D.C.’s Department of Consumer and Regulatory
Affairs at https://corp.dcra.dc.gov/. You will need to
establish a username and password (which is free) in order to
access the database. And you must use Internet Explorer
version 7 or higher in order to access the database. Create a
list of potential aged business entities by searching by
organization name, searching for names generic in nature. For
example, type in “the” in the search query, and all business
names that begin with that word will appear. Or type in a

letter such as “A,” and all businesses that start with the letter
“A” will appear.
After hitting the “Continue to Step 2” button, you will see a
list of company names. You are looking for names that meet
ALL of the following criteria:
• The letters “LLC” and “DC” next to the company name
• Status is revoked
• Date is within four to six years
• No Annual Report has ever been filed
Companies that have the letters “LLC” next to their name
indicate the company is a limited liability company (not a
corporation). Moreover, companies that have the letters
“DC” next to their name indicate the company was originally
incorporated in the District of Columbia. Companies that
have letters other than “DC” next to their names indicate that
those companies were formed in another jurisdiction and
qualified to do business as a foreign corporation in the
District of Columbia. Since you are searching for companies
that were formed in the District of Columbia, you only
consider companies that have the letters “DC” next to their
name.
Look for companies whose status is “revoked” because you
can assume a company’s history by purchasing the name of
the company from the original incorporator and re-instating
the company’s status to “active” by paying the appropriate
filing fees to the Department of Consumer and Regulatory
Affairs.

The reason you need to look for companies that are four to
six years old is the business credit bureaus and banks may
become suspicious as to why a company that is older than six
years has not developed a credit file. You want a minimum of
four years business history in order to engender the banks’
confidence about your company’s ability to repay the loans
for which you are applying.
I have created a training module called "How to Search For
Aged DC Company" where I demonstrate via a recorded
video of how to search for aged company at the DCRA's
website. I suggest you view this module for help.
Look at the page called “DCRA Search” to see an example
of a search I performed for all organization names that begin
with the letter “A.” You will notice the results of that search
on the page entitled “DCRA Search Results.” The name,
“A & M ADAMS ROW, LLC” meets all of the
aforementioned criteria.
When considering selecting a business entity, you will need to
search the database of the two most used business credit
bureaus—Dun & Bradstreet and Experian—to determine if
either bureau has a credit file for it. If a judgment or other
public filing exists, the chances of Dun & Bradstreet or
Experian having a record of it are pretty high. If the aged
entity you are considering selecting does not have a Dun &
Bradstreet or an Experian credit file, then the odds of any
debt, lien, or liability existing are quite small.
To search the database of Dun & Bradstreet, visit
www.dnb.com. On the right side of the page, you will notice

a box that says, “Find A Company.” Under the business
name, type in the name of the business you are checking and
select the state in which you live. If your search reveals the
exact name of that business, then go back to the database to
search for another one.
If your Dun & Bradstreet search does not reveal the name,
then perform the same search for Experian at
www.smartbusinessreports.com. Likewise, if your Experian
search reveals the exact name of the aged LLC, then go back
to the database to search for another one.
Next, contact the corporations division of the Department of
Consumer and Regulatory Affairs at (202) 442-4432 to ask if
annual forms were ever filed for the company you are
searching. For example, call to ask if annual forms were ever
filed for “A & M ADAMS ROW, LLC.” It is important that
you specifically ask if an annual report was EVER filed for
any year. If reports were filed, ask what years for which they
were filed.
If a report has never been filed, call directory assistance (a.k.a.
“411”) to see if there is a business listing (including the phone
number) for that business name. For example, I would ask
the directory assistance operator if there is company listing
for “A & M ADAMS ROW, LLC,” in the city listed on the
company’s full detail listed on the Department of Consumer
and Regulatory Affairs’ website. If there is a phone number
(and it is a working number), then go back to search for
another name. If there is not, then you have found an “aged
business entity” to which you can build credit.

Once you have found an “aged” LLC to which you can build
credit, contact the individual who originally filed it. Offer to
buy the name of the LLC from that person for as little a price
as possible; for example, $200. If possible, offer the individual
a small monthly salary of $200 to hold an officer’s position
(e.g. Vice President) with the company for a couple of
months.
To find this person, contact the registered agent listed on the
corporate details page. In many instances, the registered agent
is the incorporator. Otherwise, the registered agent may have
the contact information of the incorporator. You can also
order a copy of the Articles of Association from Department
of Consumer and Regulatory Affairs. In most cases, the
incorporator’s address is listed on the Articles of Association.
You can also search the incorporator for free online
databases such as www.anywho.com or other similar
websites. If you are unable to find the person from the free
sites, contact a skip-tracing service. One skip tracing website
you can reference is www.zabasearch.com. For about $50-
$75, a skip-tracing service should be able to give you the
current address and phone number of the person who
originally filed the corporation. The skip-tracer will need the
first and last name and any previously known addresses. You
can obtain a previous address from the registered agent or
from the Articles of Regulatory.
Once you have found an “aged” LLC that meets all the
aforementioned criteria and have purchased the name of the
company from the original incorporator, you need to make a
few changes to the company with the Department of

Consumer and Regulatory Affairs. First, convert the
company’s status from “revoked” to “active.” Active is akin
to “good standing. Second, change the registered agent’s
name and address. And finally, change the company
name.” Follow these steps by completing:
• Application for Reinstatement of Articles of Organization of a LLC
• Two-Year Report for Foreign and Domestic LLC
• Registered Agent Change of Name or Registered Office
• Articles of Correction to the Articles of Organization of Domestic LLC
DCRA LLC Filing Forms contains all the LLC filing forms
Complete the Application for Reinstatement of Articles of
Organization of an LLC and the Two-Year Report for
Foreign and Domestic Limited Liability Company to change
the company’s status from “revoked” to “active.” You must
retroactively file a Two-Year Report for Foreign and
Domestic Limited Liability Company for every two years
thereafter. For example, to reinstate A & M ADAMS ROW,
LLC (originally filed 2003) in 2007, you must file the Two
Year Report for Foreign and Domestic Limited Liability
Company which was due in 2004. You must also file the
Two-Year Report for Foreign and Domestic Limited Liability
Company which was due in 2006 (two years after the initial
Two Year Report for Foreign and Domestic Limited Liability
Company).
After the company’s status is “active,” complete Registered
Agent Change of Name or Registered Office to change the

egistered agent and registered agent’s address. I suggest that
you list yourself as the new registered agent and your office
address as the registered agent’s address.
Once the company’s registered agent and address has been
changed, complete Articles of Amendment to the Articles of
Organization of LLC to change the name of the company. I
suggest naming the company after your own name. For
example, I would name the company Jeremy Zigman, LLC.
Click on the links below to see example of how to properly
fill out each of the forms mentioned above
• Application for Reinstatement of Articles of Organization of an LLC
• Two Year Report for Foreign and Domestic Limited LLC
• Registered Agent Name Change or Registered Office
• Articles of Correction to the Articles of Organization of Domestic LLC
If you have any further questions about how to properly fill
out each of the pages listed above, contact the Department of
Consumer and Regulatory Affairs at (202) 442-4432.
LIVE OUTSIDE OF THE DISTRICT OF COLUMBIA
Follow the procedures described above. You will initially
establish your company in the District of Columba, establish
a professional business presence and build your company's
Dun & Bradstreet report as described in Chapter 8. Then,
after your company's Duns report has been established, you
will "move" the company's address to the address where you
live.

By following the procedures listed above, you will have
purchased a business that is five years old and can be
documented by the filing number and date of the LLC. The
next step is to create a professional business presence, which
will be discussed in the following chapter.
Copyright © 2007 by Jeremy Zigman
All Rights Reserved. www.zectech.net 949.273.4403

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DCRA Search

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DCRA Search Results

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DCRA Search Results Full Detail

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Duns Company Search

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Duns Company Search Results

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Experian Company Search

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Experian Company Search Results

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Application for Reinstatement of Articles of
Organization of an LLC

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Two-Year Report For Foreign & Domestic LLC

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Registered Agent Name Change or Registered Office

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Articles of Correction of the Articles of
Organization of Domestic LLC