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Small business credit cards are very important to helping you finance your business and build credit. However, you always want to make sure that you know just what kinds of small business credit cards you are getting when you submit your applications, and what is necessary to apply in the first place.
Small business credit cards are, appropriately, given only to business entities and not to individuals. In order to qualify, you must first set yourself up with a business entity, for which you will need the help of an attorney. You will most likely create your business under the name of a C-corp or an LLC; the former being very useful for businesses that may one day expand and go public, and the latter being more useful for businesses that flexibility and loose regulations. In either form, the business must be registered with the IRS for an Employer Identification Number, which acts like the equivalent of a social security number for tax purposes. The business must then have a designated telephone line and bank account, and must have a few merchant trade lines. With this in place, you can set up an account with a business credit bureau and you will be ready to start applying.
There are approximately five hundred small business credit cards available, all of which offer comparable offers to personal credit cards by way of bonuses and rewards, and start up low interest periods. While the interest rates are often slightly higher than their personal credit card counterparts, the credit limits tend to be substantially higher as well.
Small business credit cards are an excellent way to build your business credit, as well as gain access to easy financing for your new business. No business in the modern age should be without them.
