Since good credit is such an important aspect of obtaining loans and financing, a credit repair business can be a lucrative way to put your financial services experience or knowledge to good use. A credit repair business helps consumers to go through the steps necessary to bump up their credit score, fix any problems or blemishes that bring the score down. To open a credit repair business, some state and county licensing procedures are necessary.

Step 1.

Register the business as a limited liability company. You first have to register the name of the credit repair business with the state in which it operates. Many business attorneys and experts suggest establishing a credit repair business as an LLC for its protective features and tax benefits. To register the credit repair business as a LLC, contact the secretary of state. This office provides you with the application and any supporting documentation you must include to obtain a state business license. Before deciding on a business structure for the credit repair business, you may want to consult with a business attorney or accountant to review the asset and liability protection and tax situations each business structure brings (for example, sole proprietorship, partnership, corporation or LLC).

Step 2.

Obtain an occupational license. The county and state where the credit repair business operates generally requires a credit repair business to have an occupational license. Contact the city or county licensing board to see if your city or county requires you to have this license. For a credit repair business, you typically have to obtain an occupational license as a financial services business.

Step 3.

Obtain a zoning license. You may also have to obtain a zoning license to operate the business. If you choose to operate the credit repair business as a home business, contact the zoning board of the county to see if it requires you to obtain a home office zoning permit. If you have to do any construction on the office where you intend on running the business, a construction or zoning license may also be necessary.

Step 4.

Obtain a surety bond. Many states require any business performing credit services or financial services to obtain a surety bond. A surety bond can be obtained by contacting the state corporate commissioner. This office can provide you with the state-specific situations for operating a credit repair business in your state.