Business Credit Cards for LLCs

New and established business owners know the importance of having a solid business credit score. A business credit card is the best way to strengthen your business credit while creating vendor relationships and earning rewards for purchases. With a business credit card, you can pay for expenses without immediately sacrificing any cash on hand. As a limited liability corporation (LLC), your business has unique circumstances that make a business credit card an excellent tool to help your business reach its goals.  

Business credit cards are among the most accessible forms of business financing. This accessibility means almost any business – regardless of its size or status – can reap the benefits of a credit card. There are many other benefits to having a business credit card for your LLC, including: 

Increase your purchasing power. Every business has expenses. With a credit card, you can pay for supplies or technology without tapping into your working capital until it’s time for your monthly payment. This flexibility makes it easy for you to buy critical expenses and keep your business running. 

Separate your personal and business expenses. It’s important for an LLC to maintain separate personal and business finances as this ensures your limited liability status. This also makes it easier to manage your business expenses in one place and file your taxes without the hassle of combing through personal statements.  

Earn rewards for your spending. Like personal credit cards, business credit cards typically offer perks like rewards on your spending. For businesses, these rewards can look like cash back or points on purchases. Business credit cards typically reward common business purchases like office supplies, shipping and postage, or travel expenses. 

Establish business credit. By making timely payments on your purchases, you can steadily build your business credit score. Having a solid business credit score shows lenders and potential partners your business has decent creditworthiness and lower risk. The higher your credit score is, the more favorable terms you can secure for any financing. 

Every business credit card offers different benefits, so it’s important to consider what type of rewards or flexibility would work best for your LLC. For example, business owners that travel frequently for their company would benefit from a credit card with travel rewards. Alternatively, if you have a large order to fulfill and will soon have a lot of upfront costs, a credit card with a high introductory bonus would benefit you. Many business credit cards offer introductory offers, like a welcome bonus for spending a certain amount. This can be a good strategy to maximize your rewards during a busy period for your business. 

When you’re ready to add a business credit card to your business financial plan, here are some things to consider when searching for the right one for your LLC: 

• What are some of your biggest expenditures? Look for a credit card that offers rewards on your everyday spending. 

• What are your financial goals? Whether you’re looking to grow your business or simply improve your credit, a good business credit strategy should work in your favor. 

• What type of flexibility do you need? Credit cards are easier to get approved for than other types of financing, so know what types of flexibility suits your needs – like lower interest or flexible monthly payments. 

• What is your payment plan? Like all credit cards, most business credit cards require some sort of monthly payment. Credit cards are typically personally guaranteed, meaning you need to know how you will ensure payment on the purchases you put on your credit card. 

Businesses do not need to be incorporated to apply for a business credit card. In fact, it is fairly simple to apply and qualify for a business credit card. 

To apply for an LLC credit card, you simply need the following: 

• Business information like your Federal Tax ID or Employee Identification Number. In most cases, this isn’t even a requirement for application. 

• Business category, type, and estimate of expenses. 

• Your personal credit score. This score helps determine your creditworthiness. 

Card issuers may vary on requirements, but it is generally easier to get a business credit card than other types of short-term or traditional financing.  

Business credit cards are a great way to access short-term financing without sacrificing your working capital to pay for everyday expenses. They can also act as a building block for your business credit score and increase potential for larger financing opportunities. Your LLC has unique business needs, so you deserve a business credit card designed with your needs in mind. Find highly rated business credit cards and other financing opportunities tailored to your success at SmallBusinessLoans.com.