Obtaining a business credit card for your Limited Liability Company (LLC) can be a game-changer. It helps separate your personal and business finances, builds business credit, provides access to capital, and offers valuable rewards. Choosing the right card, however, requires careful consideration of your business needs and spending habits. This article explores the best credit card options for LLCs in 2024, focusing on maximizing rewards and benefits.
Best Credit Cards for LLCs: A Comparison
| Card Name | Key Features | Benefits |
|---|---|---|
| Chase Ink Business Preferred® Credit Card | High rewards on travel and select business categories; travel and purchase protection; no foreign transaction fees. | Excellent travel rewards; points are worth more when redeemed for travel through Chase Ultimate Rewards; strong purchase protection. |
| American Express® Business Gold Card | 4x points on the 2 select categories where your business spent the most each billing cycle (on the first $150,000 combined each calendar year); flexible redemption options; access to Amex Offers. | High earning potential in top spending categories; valuable travel perks; strong customer service. |
| Capital One® Spark® Miles for Business | Unlimited 2x miles on every purchase; simple rewards structure; no foreign transaction fees. | Straightforward rewards program; easy to redeem miles; good for businesses with diverse spending. |
| Capital One® Spark Cash Plus | Unlimited 2% cash back on every purchase; flexible redemption options; no foreign transaction fees. | Highest flat cash back rate; simple redemption; good for businesses that prefer cash back. |
| Brex Card | Rewards tailored to startup needs; integration with accounting software; no personal guarantee required (for eligible businesses). | Designed for startups; valuable perks for tech companies; simplified expense management. |
| U.S. Bank Business Triple Cash Rewards Visa® Card | 3% cash back on gas, EV charging stations, office supply stores, and cell phone service providers; 1% cash back on all other eligible purchases; intro APR offer. | Strong rewards on common business expenses; valuable intro APR; no annual fee. |
| Amazon Prime Business American Express Card | 5% back at Amazon.com and Whole Foods Market; 2% back at restaurants and gas stations; 1% back on all other purchases. | Excellent rewards for Amazon shoppers; valuable perks for Prime members; no annual fee. |
| Chase Ink Business Unlimited® Credit Card | Unlimited 1.5% cash back on every purchase; intro APR offer; no annual fee. | Simple cash back rewards; valuable intro APR; accessible for businesses with limited credit history. |
| Capital One® Spark Classic for Business | 1% cash back on every purchase; Designed for building credit; No annual fee. | A good starter card for building business credit; straightforward rewards program; accessible for businesses with fair credit. |
| Divvy Smart Credit Card for Business | Free expense management software; rewards on restaurants, hotels, and software subscriptions; no personal guarantee required. | Automates expense tracking; provides valuable insights into spending patterns; eliminates the need for expense reports. |
Detailed Explanations of Card Features and Benefits
Chase Ink Business Preferred® Credit Card
The Chase Ink Business Preferred® Credit Card is a powerhouse for businesses that spend heavily on travel and select business categories. It offers high rewards on these purchases, which can be redeemed for travel through the Chase Ultimate Rewards portal at a 25% bonus. The card also provides valuable travel and purchase protection benefits, ensuring peace of mind when making business-related purchases. The absence of foreign transaction fees makes it ideal for international travel or transactions.
American Express® Business Gold Card
The American Express® Business Gold Card stands out for its flexible rewards structure. It offers 4x points on the 2 select categories where your business spent the most each billing cycle (on the first $150,000 combined each calendar year). This allows you to maximize your rewards based on your specific spending habits. The card also provides access to Amex Offers and other valuable travel perks, making it a compelling option for businesses that travel frequently.
Capital One® Spark® Miles for Business
The Capital One® Spark® Miles for Business offers a simple and straightforward rewards program, with unlimited 2x miles on every purchase. This makes it easy to earn rewards without having to track spending categories. The miles can be redeemed for travel or cash back, providing flexibility for your business needs. The card also has no foreign transaction fees.
Capital One® Spark Cash Plus
The Capital One® Spark Cash Plus delivers a high flat cash back rate, offering unlimited 2% cash back on every purchase. This makes it a great option for businesses that prefer cash back over travel rewards or category-based bonuses. The cash back can be redeemed easily and the card has no foreign transaction fees.
Brex Card
The Brex Card is specifically designed for startups and offers rewards tailored to their needs. It often includes perks such as discounts on software subscriptions and other services commonly used by tech companies. Brex also integrates with accounting software, simplifying expense management. In some cases, the Brex card does not require a personal guarantee.
U.S. Bank Business Triple Cash Rewards Visa® Card
The U.S. Bank Business Triple Cash Rewards Visa® Card offers 3% cash back on common business expenses such as gas, EV charging stations, office supply stores, and cell phone service providers. It also provides 1% cash back on all other eligible purchases. The card often includes an introductory APR offer, making it a valuable option for businesses looking to finance purchases.
Amazon Prime Business American Express Card
The Amazon Prime Business American Express Card is a must-have for businesses that frequently shop on Amazon.com and Whole Foods Market. It offers 5% back on purchases made at these locations. It also provides 2% back at restaurants and gas stations and 1% back on all other purchases. This card is a great option for businesses that are already Amazon Prime members.
Chase Ink Business Unlimited® Credit Card
The Chase Ink Business Unlimited® Credit Card provides unlimited 1.5% cash back on every purchase. This makes it a simple and straightforward option for businesses that prefer cash back without having to track spending categories. The card also offers an introductory APR offer and has no annual fee, making it accessible for businesses with limited credit history.
Capital One® Spark Classic for Business
The Capital One® Spark Classic for Business is designed for building business credit. It offers 1% cash back on every purchase and has no annual fee. This card is a good starting point for businesses with fair credit that are looking to establish a positive credit history.
Divvy Smart Credit Card for Business
The Divvy Smart Credit Card for Business offers free expense management software that automates expense tracking and provides valuable insights into spending patterns. The card also offers rewards on restaurants, hotels, and software subscriptions. A major benefit is that it often requires no personal guarantee.
Frequently Asked Questions
What is a business credit card for an LLC? It's a credit card specifically designed for business expenses, issued under the LLC's name and EIN, helping separate business and personal finances.
Why should my LLC get a business credit card? It builds business credit, provides access to capital, simplifies expense tracking, and often offers valuable rewards and benefits.
What credit score is needed to get a business credit card? Generally, a good to excellent personal credit score (680 or higher) is needed, as many issuers require a personal guarantee.
Can I get a business credit card without a personal guarantee? Yes, some cards, like the Brex Card and Divvy Smart Credit Card, may offer options without a personal guarantee for eligible businesses.
How do I choose the right business credit card for my LLC? Consider your business's spending habits, desired rewards (cash back, travel, etc.), fees, and any specific needs like expense management tools.
What is an EIN, and do I need one for a business credit card? An Employer Identification Number (EIN) is a tax ID for your business; you typically need one to apply for a business credit card.
Are business credit card rewards taxable? Generally, cash back rewards are not taxable, but travel rewards may be considered taxable income in certain situations. Consult with a tax professional.
How does a business credit card help build business credit? Responsible use and timely payments are reported to business credit bureaus, helping to establish a positive credit history for your LLC.
Can I use a personal credit card for business expenses? While possible, it's not recommended as it blurs the line between personal and business finances and doesn't build business credit.
What happens if I default on my business credit card? If you provided a personal guarantee, your personal credit score will be affected, and the issuer may pursue legal action against both your LLC and you personally.
Conclusion
Choosing the best credit card for your LLC depends heavily on your specific business needs and spending patterns. Consider the rewards structure, fees, and benefits offered by each card to make an informed decision that will maximize your returns and help you manage your business finances effectively. Prioritize cards that align with your most frequent spending categories and offer features that simplify your operations.