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Credit Cards For Business
Mark Karavan, Knowledge Level: All Levels, Keywords: credit cards for business
First, in order to apply for credit cards for businesses, you will need to incorporate your business or form an LLC. The type of organization that you create depends largely on your needs; if you are planning on building a long-term business empire that will eventually go public, it is probably best to start your business as a C-corp and get used to the stable business infrastructure. If you need flexibility and an easy set up, it will probably be wiser for you to start up with an LLC.
Your business entity must be registered with the IRS and with Dun & Bradstreet so that you can start building a credit profile. For most businesses, credit initially builds in a manner that is exceedingly similar to the building of personal credit, that is, you simply pay your bills and credit cards off on time. Getting credit cards for business initially is a bit difficult, as many of the credit cards that are available to new businesses are not exclusively business credit cards; rather, they will often affect your personal credit in a manner that is adverse. The safe way around this is to apply for a secured credit card; this way, you will have to hold a savings account to secure the credit card, but the credit that you generate with it initially will be exceptionally useful to your business.
Be sure that you are getting a credit card that has a stable interest rate and rewards that are valuable to your business. As you use it, pay it off on time and you will see credit grow rapidly, making you readily more eligible for bigger and better loans.
. Article on credit cards for business by Mark Karavan
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