Starting a new Limited Liability Company (LLC) is an exciting venture, but it also comes with its own set of financial challenges. One of the most important steps is establishing business credit, and a business credit card can be a powerful tool. Choosing the right credit card can help you manage expenses, build credit, and earn rewards, all while keeping your personal and business finances separate.
Comprehensive Credit Card Comparison Table
| Card Name | Key Benefits | Ideal For |
|---|---|---|
| American Express Business Gold Card | 4x points on top 2 spending categories each month (up to $150,000 combined), flexible payment options. | Businesses with varied spending habits who want maximum rewards. |
| Chase Ink Business Preferred Credit Card | 3x points on travel and select business categories, strong travel protections. | Businesses with significant travel expenses and online advertising costs. |
| Capital One Spark Cash Plus | Unlimited 2% cash back on all purchases, no preset spending limit. | Businesses seeking simplicity and a high cash back rate on all spending. |
| Brex Card | Rewards tailored to startups, including travel and software credits, no personal guarantee required (for some startups). | Tech startups and businesses focused on high-growth and early-stage funding. |
| U.S. Bank Business Triple Cash Rewards Visa | 3% cash back on gas and EV charging stations, office supply stores, cell phone service, and restaurants, 1% on all other eligible net purchases. | Businesses with high spending in common business categories. |
| Bank of America Business Advantage Customized Cash Rewards Card | 3% cash back in a category of your choice, 2% on dining, and 1% on all other purchases. | Businesses seeking customized rewards and a relationship with Bank of America. |
| Amazon Prime Rewards Visa Signature Card | 5% cash back at Amazon.com and Whole Foods Market, 2% at restaurants and gas stations, 1% on all other purchases. | Businesses that make frequent purchases from Amazon and Whole Foods. |
| Divvy Corporate Card | Expense management software integrated with the card, rewards based on payment frequency. | Businesses prioritizing expense management and control. |
| Ramp Card | Expense management software integrated with the card, rewards tailored to startups. | Businesses prioritizing expense management and control. |
| Blue Business Plus Credit Card from American Express | 2x Membership Rewards points on every day purchases up to $50,000 per year (then 1x). | Businesses looking for simple rewards on everyday spending. |
| Chase Ink Business Cash Credit Card | 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. | Businesses that spend heavily on office supplies, internet, cable, and phone services. |
| Wells Fargo Business Platinum Credit Card | Low introductory APR, purchase protection, and fraud liability protection. | Businesses looking for a low introductory APR and basic business credit card features. |
| Capital One Spark Classic | Designed for businesses with fair credit. | Businesses with fair credit. |
Detailed Explanations of Key Credit Card Features
American Express Business Gold Card: This card stands out for its flexibility. It offers 4x Membership Rewards points on the two categories where your business spends the most each billing cycle (up to $150,000 in combined purchases per calendar year; then 1x). These categories include advertising, airfare, gas stations, restaurants, shipping, and technology. The flexible payment options can also be a huge benefit for managing cash flow. However, it comes with an annual fee, so it's best suited for businesses that can maximize the rewards.
Chase Ink Business Preferred Credit Card: If your business involves a lot of travel or online advertising, this card is a great option. You earn 3x points on travel and select business categories, including shipping, internet, cable, phone services, and advertising purchases made with social media and search engines (up to $150,000 in combined purchases each account anniversary year). The strong travel protections, such as trip cancellation insurance and auto rental collision damage waiver, are also valuable perks.
Capital One Spark Cash Plus: This card offers a simple and straightforward rewards structure. You earn unlimited 2% cash back on all purchases, making it a great choice for businesses that want a consistent return on all spending. The "no preset spending limit" gives you more flexibility, but it's important to remember that this doesn't mean unlimited spending; your limit adjusts with your use of the card.
Brex Card: Designed specifically for startups, the Brex Card offers rewards tailored to the needs of high-growth companies. These rewards can include travel and software credits. A significant advantage is that Brex may not require a personal guarantee, depending on the startup's funding and financial status. This is attractive to entrepreneurs who want to keep their personal assets separate from their business liabilities.
U.S. Bank Business Triple Cash Rewards Visa: This card offers a compelling rewards structure for businesses that spend significantly on gas, office supplies, cell phone service, and restaurants. You earn 3% cash back in these categories, making it a valuable option for businesses with frequent spending in these areas. The 1% cash back on all other purchases provides a solid base for overall rewards.
Bank of America Business Advantage Customized Cash Rewards Card: This card allows you to choose a 3% cash back category from a list of options, such as gas stations, office supplies, travel, TV/telecom & wireless, or business consulting services. This customization allows you to tailor the rewards to your specific business needs. The 2% cash back on dining and 1% on all other purchases provide additional value.
Amazon Prime Rewards Visa Signature Card: If your business makes frequent purchases from Amazon and Whole Foods Market, this card is a no-brainer. You earn 5% cash back on these purchases, making it a highly rewarding option for Amazon-centric businesses. The 2% cash back at restaurants and gas stations and 1% on all other purchases provide additional benefits. Note that you do need an Amazon Prime membership to be eligible for this card.
Divvy Corporate Card: Divvy is more than just a credit card; it's an integrated expense management platform. It allows you to set budgets, track spending, and generate reports in real-time. The rewards structure is based on how frequently you pay your balance, incentivizing responsible spending habits. This card is ideal for businesses that prioritize expense management and control.
Ramp Card: Similar to Divvy, Ramp is a corporate card designed to help businesses manage expenses effectively. It offers expense management software integrated with the card and rewards tailored to the needs of startups. Ramp focuses on automation and streamlining financial processes.
Blue Business Plus Credit Card from American Express: This card offers a simple and valuable rewards structure for everyday business spending. You earn 2x Membership Rewards points on every day purchases up to $50,000 per year (then 1x). There is no annual fee, making it an attractive option for businesses looking for a low-cost rewards card.
Chase Ink Business Cash Credit Card: This card offers high rewards on specific business spending categories. You earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. This card is excellent for businesses that have high spending in these areas.
Wells Fargo Business Platinum Credit Card: This card provides a low introductory APR for a limited time, making it a useful option for businesses that need to finance purchases or transfer balances. It also includes basic business credit card features like purchase protection and fraud liability protection.
Capital One Spark Classic: This card is designed for businesses with fair credit. While it may not offer the same high rewards as other cards, it provides an opportunity to build business credit and access financing.
Frequently Asked Questions
Can I get a business credit card for a new LLC? Yes, you can. Lenders will typically assess your personal credit history and the LLC's financial projections.
Do I need an EIN to apply for a business credit card? While not always required, having an Employer Identification Number (EIN) is generally recommended and can improve your chances of approval.
Will a business credit card affect my personal credit score? If you are personally guaranteeing the card, your payment history can impact your personal credit score.
What is a personal guarantee? A personal guarantee means you are personally liable for the debts of the business. If the business cannot pay, you are responsible.
How do I build business credit with a credit card? Make on-time payments and keep your credit utilization low to establish a positive credit history for your LLC.
What are the benefits of a business credit card over a personal one? Business credit cards often offer higher credit limits, rewards tailored to business spending, and expense tracking tools. They also help separate business and personal finances.
What if my LLC has no revenue yet? Lenders will likely rely more heavily on your personal credit score and financial history in this case.
Is there a fee for adding employee cards? Some cards offer free employee cards, while others charge a fee. Check the card's terms and conditions.
What should I consider before applying for a business credit card? Consider your spending habits, desired rewards, annual fees, and interest rates before applying.
How can I use a business credit card to track expenses? Most business credit cards offer online portals and mobile apps that allow you to categorize and track your business expenses.
Conclusion
Choosing the best credit card for your new LLC requires careful consideration of your business needs and spending habits. By comparing the rewards, fees, and features of different cards, you can find the one that best helps you manage expenses, build credit, and grow your business. Remember to prioritize responsible spending and on-time payments to maximize the benefits of your business credit card.