Owning a Limited Liability Company (LLC) comes with its fair share of challenges, and managing finances is right at the top of that list. What if we told you that the right business credit card could make all the difference? That's right, we've put together a comprehensive guide to help you discover the best business credit cards for your LLC, and trust us, you'll want to read every word!
Best Business Credit Cards For LLC Table of Contents
Why Your LLC Needs a Business Credit Card
Before diving into the best credit cards, let's understand why an LLC needs a business credit card:
- Growing your business credit: Using a card responsibly can help build a strong credit profile for your LLC, giving better access to credit terms and lower interest rates on loans when needed for growth.
- Simplifying accounting: A dedicated business credit card helps separate personal and business expenses, making it easier to manage accounts and track expenses.
- Rewards and benefits: Business credit cards come with various rewards, such as cashback and travel perks, as well as other benefits like purchase protection and extended warranty coverage.
Top Business Credit Cards for LLCs
Now that we understand the benefits, let's explore the best business credit cards for LLCs:
1. American Express Blue Business Cash Card
- Annual Fee: $0
- Rewards: 2% cash back on eligible purchases up to $50,000 per year, then 1% cash back after that.
- Benefits: Expanded buying power, purchase protection, and no annual fee.
2. Ink Business Cash Credit Card
- Annual Fee: $0
- Rewards: 5% cash back on the first $25,000 in combined purchases in office supply stores, internet, cable, and phone services; 2% on the first $25,000 for gas stations and restaurants; 1% on all other purchases.
- Benefits: Employee cards at no extra cost, auto rental collision damage waiver, and purchase protection.
3. Capital One Spark Cash for Business
- Annual Fee: $0 intro fee for the first year, then $95.
- Rewards: Unlimited 2% cash back on all purchases.
- Benefits: Free employee cards, no foreign transaction fees, and purchase and fraud protection.
4. Chase Ink Business Preferred Credit Card
- Annual Fee: $95
- Rewards: 3 points per dollar on the first $150,000 spent in select categories (travel, shipping, online advertising, and cable, internet, and phone services); 1 point per dollar on all other purchases.
- Benefits: Travel and purchase protection, employee cards at no extra cost, and point redemption through the Chase Ultimate Rewards program.
Best Business Credit Cards For LLC Example:
Imagine you own a digital marketing LLC with two employees, and you spend $30,000 annually on online advertising, $10,000 on internet and phone services, and $5,000 on travel expenses.
With the Chase Ink Business Preferred Credit Card, you'd earn:
- 3 points per dollar spent on the first $30,000 in online advertising, resulting in 90,000 points.
- 3 points per dollar spent on the first $10,000 in internet and phone services, resulting in 30,000 points.
- 3 points per dollar spent on the first $5,000 in travel expenses, resulting in 15,000 points.
In total, you'd accumulate 135,000 points, which could be worth up to $1,350 or more when redeemed through Chase Ultimate Rewards for travel or other rewards.
There you have it – the ultimate guide to the best business credit cards for your LLC. Remember, weighing the benefits and rewards against the annual fees and other costs will help you find the perfect credit card fit for your business. Don't forget to share this guide with fellow business owners so they too can reap the rewards! And if you're craving more expert insight, head over to Flik Eco for more personal finance wisdom and tips tailored to the millennial crowd. Happy hunting!
