Business credit card application: What should it be called?
For many small business owners, business credit card is a smart and effective way to help manage business-related expenses.
With the right card, you’ll enjoy many benefits beyond the convenience of having an extended credit limit. With responsible use, you can Build your business credit history. You can also earn rewards, get a free employee card, and get access to expense management software.
When you’re ready Apply for a business credit cardThe process will not be the same as applying for a personal credit card. In addition to some personal information, you also need to provide some business-related details. This includes how long you’ve been in business, annual business revenue, and number of employees.
You will 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 decide what name to put on your business credit card.
Related: 10 considerations for your small business credit card strategy
Why you might want a business credit card
There are many Reasons to apply for a business credit card. The simplest reason is if you have an established business and are looking for a better way to organize your expenses.
Even if you don’t need a business card, you may want one to help separate your work expenses from personal expenses. It can also prevent spending balances from 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 welcome bonus without affecting your eligibility for future personal credit card applications and avoiding restrictions such as Chase’s 5/24 Rule.
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Related: Credit utilization ratio: What it is and how it affects your credit score
What name should you apply for a business credit card under?
The specific answer to this question will depend on your business structure. Banks allow you to specify whether you are registering as a partnership, a type of corporation, or a sole proprietorship, among other options. Some card issuers, such as Citi, will give you tons of options. Larger companies or those registered as a corporation, LLC or partnership will have an easier time deciding which name to use – they will only apply to the business name.
Things get a little more complicated if you are the sole owner.
If you’re not 100% sure about the business structure you should choose, talk to a lawyer or tax professional. Many enthusiast points will be applying as sole proprietors or self-employed for things like:
- DoorDash or Uber driver
- Rover pet owner
- Freelance writer
- Babysitter
Registering 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 incorporate; you establish sole ownership simply by doing business. If you go this hassle-free route, you’ll apply for a business credit card in your own name.
Some banks (notably Chase) like to require supporting documentation before approving a business card application, including proof of physical address. By using your name as the business name, you can submit rent or utility bills that match the information you provided in your application.
Related: Who is eligible for a business credit card?
How to get a credit card in your business name
However, branding is half the battle in attracting clients, and you probably don’t want to call your new consulting firm by just its first name. If your business is operating under a name other than your legal name, you must file a DBA (doing business) form.
The specific regulations on this (who, where, when, and what you need to file) vary by state. Again, you should consult a legal professional before proceeding. This is a necessary step before you can open a bank account or line of credit in your business name.
In many ways, this is a warning about what not to do: Never, under any circumstances, create a business name for your application without filling out the necessary paperwork first.
Not only do you have no recourse if your card issuer asks you for business support documents, but you could also be committing fraud by impersonating yourself as a non-existent business. The simple and short answer for most business owners who want to register a business card is to use your own name and keep things simple and legal.
Related: Basic guide to restrictions when applying for a credit card
Bottom line
Business credit cards can be a great way to enjoy more welcome bonuses, bonus spending categories, and other valuable perks. If you qualify for a business credit card, keep in mind that these applications typically face a bit more scrutiny than personal credit card applications.
Always be prepared to present your business registration certificate or other relevant documents if necessary. When in doubt, consult a legal professional, and if you’re registered as a sole proprietorship, consider using just your own name as the business name.
Related: The best business cards
