Starting a new business comes with a myriad of decisions and responsibilities, one of which is choosing the right credit card for your LLC. Luckily, you've landed at Flik Eco, where we're committed to simplifying complex financial topics and empowering readers just like you! In this article, we'll explore some of the best new business credit cards for LLCs and break down the features, benefits, and factors you need to consider to make the best choice for your company.
New Business Credit Cards For LLC Table of Contents
Why Your LLC Needs a Business Credit Card
Why Your LLC Needs a Business Credit Card
- Separate personal and business expenses
- Improve cash flow and manage business expenses
- Earn rewards and perks that can help your business grow
- Build business credit, which can help you secure better financing terms in the future
- Protect your personal credit score
Factors to Consider When Choosing a Business Credit Card
APR and Fees
Obviously, you'll want to look for a card with a low annual percentage rate (APR) and reasonable fees. Keep in mind that many business credit cards come with annual fees, but don't let that deter you – the rewards and benefits can often outweigh the cost.
Rewards Program
Some business credit cards offer rewards for purchases, which can help offset the cost of your expenses. Look for a card that offers rewards in categories aligned with your business spending, like travel, office supplies, or advertising.
Introductory Offers
Many credit cards lure in new customers with attractive introductory offers, such as 0% APR for a certain period of time or a generous signup bonus. While these offers can provide valuable savings, make sure you read the fine print and consider the long-term value of the card, as well.
Credit Requirements
Keep in mind that each credit card issuer has its own credit requirements. While some may accept applicants with average credit, others may require excellent credit (generally a credit score of 720 or above) in order to qualify.
Best Business Credit Cards for LLCs
Chase Ink Business Preferred
Pros:
- 80,000-point signup bonus after spending $5,000 in the first 3 months
- 3x points on travel, shipping, Internet, cable, phone, and advertising purchases
- No foreign transaction fees
- Cell phone protection
Cons:
- $95 annual fee
- Requires good to excellent credit
Amex Blue Business Plus
Pros:
- 0% APR for the first 12 months
- 2x points on all purchases up to $50,000 per year
- No annual fee
- Flexible payment options for managing cash flow
Cons:
- Requires good to excellent credit
- No signup bonus
- 2.7% foreign transaction fee
New Business Credit Cards For LLC Example:
Let's say you own a marketing agency and spend around $40,000 per year on travel, advertising, and office supplies. If you opt for the Chase Ink Business Preferred card, you could potentially earn 120,000 points per year (3x points on those categories), plus the 80,000-point signup bonus – giving you 200,000 points in just the first year! That's a substantial amount that could help offset your business expenses or even fund a well-deserved vacation for yourself.
Selecting the right business credit card for your LLC is crucial for managing expenses, building credit, and reaping valuable rewards. We hope this guide has helped clarify your options and set you on the path toward making an informed decision. Now that you're armed with this valuable knowledge, it's time to get out there and find the perfect card for your new business!
If you found this article helpful, we hope you'll share it with fellow entrepreneurs, and be sure to check out our other Flik Eco guides covering a range of personal finance and investment topics to continue your financial education journey.
