What name should I put on my business credit card application?

26.04.2024 - 17:25 / thepointsguy.com

For many small-business owners, a business credit card is a smart and effective way to help manage your business-related expenses.

With the right card, you gain numerous advantages that go beyond the convenience of having an extended line of credit. With responsible use, you can build your business credit history. You may also be able to earn rewards, receive free employee cards and get access to expense management software.

When you're ready to apply for a business credit card, the process won't be the same as applying for a personal credit card. In addition to some personal information, you'll also need to provide several business-related details. This includes how long you've been in business, your annual business revenue and the number of employees.

You'll also be asked to provide your business name. This can be your personal name or your legal business name if you have one.

Not sure which one to use? Keep reading to learn more and to help you decide what name to put on your business credit card.

There are plenty of reasons to apply for a business credit card — the simplest being that you have an established business and are looking for a way to organize your expenses better.

Even if you don't need a business card, you might want one to help separate your work expenses from personal ones. It can also prevent your spending balances being reported on your personal credit report. This can keep your credit utilization low on your personal credit report and thus help you maintain a higher credit score.

Or, maybe you want to earn some nice sign-up bonuses without affecting your eligibility for future personal credit card applications and avoiding restrictions such as Chase's 5/24 rule.

The specific answer to this question will depend on your business's structure. Banks allow you to specify whether you are applying as a partnership, a type of corporation, or a sole proprietorship, among other options. Some card issuers, such as Citi, will give you an overwhelming number of choices. Larger companies or those registered as corporations, LLCs, or partnerships will have an easier time deciding what name to use, as they will simply apply with the name of the business.

If you're just a sole proprietor, things get a little more complicated.

If you aren't 100% sure of the business structure you should select, speak with a lawyer or tax professional. Many points enthusiasts will be applying as sole proprietors or self-employed for things like:

Applying as a sole proprietor can be a great option because you don't need to file any paperwork with your state or federal government to form one – you establish a sole proprietorship simply by doing business. If you go this hassle-free route, you'll apply for business