If you own or operate a Limited Liability Company (LLC), you know that managing your finances is crucial to the success of your business. One tool that can help you manage your finances is a business credit card.
A business credit card can provide your LLC with access to a line of credit, help you build your credit score, and offer rewards and benefits that can save you money on business expenses. However, with so many business credit cards available, it can be difficult to choose the right one for your LLC’s specific needs.
In this article, we will explore the most popular business credit cards for LLCs and compare their features, benefits, and drawbacks. We will also provide tips for choosing a business credit card and using it wisely to maximize its benefits. With this information, you can make an informed decision and choose the best business credit card for your LLC.
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Factors to Consider When Choosing A Business Credit Card for LLCs
When choosing a business credit card for your LLC, it is important to consider the following factors:
Rewards and benefits: Look for a card that offers rewards and benefits that align with your business’s spending habits and needs. For example, if your LLC spends a lot on office supplies and internet services, a card that offers cash back or points for these purchases may be a good choice.
Annual fee: Some business credit cards charge an annual fee, while others do not. Consider whether the rewards and benefits of a card outweigh its annual fee.
Interest rates: Look for a card with a low interest rate, especially if you plan to carry a balance. However, keep in mind that many business credit cards offer a 0% introductory APR for a certain period of time, which can be a good option if you need to make a large purchase.
Credit score requirements: Some business credit cards require a higher credit score than others. If your LLC has a lower credit score, look for a card that is more lenient in its credit score requirements.
Additional fees: Consider any additional fees that may be associated with a card, such as foreign transaction fees, balance transfer fees, or late payment fees.
Customer service: Look for a card issuer that offers good customer service, including 24/7 support, online account management, and fraud protection.
Business-specific features: Some business credit cards offer features that are specific to certain industries or types of businesses. For example, some cards offer discounts on business travel or advertising.
Popular Business Credit Cards for LLCs
There are many business credit cards available for LLCs, each with its own set of features, benefits, and drawbacks. Here are some of the most popular business credit cards for LLCs:
American Express Blue Business Plus Credit Card
The American Express Blue Business Plus Credit Card is a popular credit card option for LLCs. This card can be a good choice for small businesses that want to earn Membership Rewards points on their everyday purchases. The card’s points rewards rate can be especially beneficial for businesses with moderate spending volumes.
Here are the card’s main benefits and features:
- Earn 2X Membership Rewards points on the first $50,000 in purchases each year, then 1X points thereafter
- No annual fee
- 0% introductory APR on purchases and balance transfers for the first 12 months, then a variable APR of 13.24% – 19.24%
- Access to American Express business tools, including account management, expense tracking, and receipt management
- Employee cards at no additional cost and the ability to set individualized credit limits for each card
- Purchase protection and extended warranty coverage
- Travel and emergency assistance services
- Zero liability protection for unauthorized purchases
- Online account management and tracking tools
- Ability to integrate with QuickBooks and other accounting software
A unique feature of the American Express Blue Business Plus Credit Card is that it offers what it calls “Expanded Buying Power.” This allows cardholders to make purchases beyond their credit limit, based on their payment history, credit record, and financial resources.
On the other hand, a potential downside of the American Express Blue Business Plus Credit Card is its limited rewards categories. Businesses that spend heavily on categories like office supplies, travel, or dining may be better served by other cards with more robust rewards programs in those areas.
Overall, the American Express Blue Business Plus Credit Card could be a good option for LLCs looking to earn rewards on their business expenses. The lack of an annual fee, 0% introductory APR, and “Expanded Buying Power” feature can all be particularly helpful for small businesses. However, businesses with higher spending volumes or more specific needs may want to explore other options with more specialized rewards programs or features.
Ink Business Cash Credit Card from Chase
The Ink Business Cash Credit Card from Chase is a popular business credit card option for LLCs. This card offers several rewards and benefits that can help businesses save money on everyday expense through cash back bonuses. The card’s tiered rewards structure can be especially beneficial for businesses that spend a significant amount of money at office supply stores, on internet, cable, and phone services, gas stations, and restaurants.
The card’s features and benefits include:
- $750 cash back bonus after you spend $7,500 on purchases in the first 3 months from account opening
- 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year
- 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- 1% cash back on all other eligible purchases
- No annual fee
- Employee cards at no additional cost and the ability to set individualized credit limits for each card
- Purchase protection and extended warranty coverage
- Travel and emergency assistance services
- Zero liability protection for unauthorized purchases
- Online account management and tracking tools
- Ability to integrate with accounting software
Overall, the Ink Business Cash Credit Card from Chase can be a valuable option for small businesses that want a simple and flexible cash back rewards program without paying an annual fee. The cash back rewards program, lack of an annual fee, and 0% introductory APR can all help businesses manage their finances more effectively. With its foreign transaction fee of 3%, it may not be the best option for LLCs that need to travel frequently overseas or buy supplies and services from foreign vendors.
Bank of America Business Advantage Cash Rewards Mastercard
The Bank of America Business Advantage Cash Rewards Mastercard is a popular credit card option for LLCs that are looking to earn cash back on their business expenses without paying an annual fee. This card offers several benefits:
- $300 statement credit offer for new cardholders who make at least $3,000 in net purchases within 90 days of account opening
- 3% cash back on your choice of one of six categories: gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services, or business consulting services
- 2% cash back at restaurants
- 1% cash back on all other eligible purchases
- Cash rewards can be automatically credited to your account or deposited into a Bank of America savings or checking account
- No annual fee
- Employee cards at no additional cost and the ability to set individualized credit limits for each card
- Purchase security and extended protection coverage
- Zero liability fraud protection
- Online account management and tracking tools
- Ability to integrate with QuickBooks and other accounting software
- Optional overdraft protection for Bank of America business checking accounts
This card also offers a 0% introductory APR on purchases and balance transfers for the first 9 billing cycles after opening an account. This can be helpful for businesses that need to make a large purchase or transfer a balance from another card. One potential downside of the Bank of America Business Advantage Cash Rewards Mastercard is its foreign transaction fee of 3%. This may not be the best option for businesses that frequently travel overseas or make purchases from foreign vendors.
Overall, the Bank of America Business Advantage Cash Rewards Mastercard can be a solid choice for small businesses that want a flexible and customizable rewards program without paying an annual fee. The cash back rewards program, lack of an annual fee, and introductory statement credit can all help businesses manage their finances more effectively. However, LLCs with higher spending volumes or more specific needs may want to explore other options with more robust rewards programs or features.
Wells Fargo Business Platinum Credit Card
The Wells Fargo Business Platinum Credit Card can be a solid option for small businesses that want to earn cash back or points on their everyday purchases without paying an annual fee. The card’s introductory APR offer can also be a helpful way for businesses to manage their cash flow and make purchases without incurring interest charges.
Key features include:
- No annual fee
- 1.5% cash back or 1 point per $1 spent on eligible purchases
- 0% introductory APR on purchases and balance transfers for 9 months from account opening
- Ability to add employee cards at no additional cost and set individualized credit limits
- Cell phone protection when you pay your monthly cell phone bill with your Wells Fargo Business Platinum Credit Card
- Purchase protection and extended warranty coverage
- Online account management and tracking tools
- Fraud monitoring and alerts
- Overdraft protection for Wells Fargo business checking accounts
- Optional overdraft protection for Wells Fargo business savings accounts
Overall, the Wells Fargo Business Platinum Credit Card can be a valuable option for LLCs that are looking for a no-frills credit card option with a 0% introductory APR and flexible payment options. The ability to add employee cards and set individualized credit limits can help businesses manage their employee expenses more effectively, while the cell phone protection and purchase protection benefits can provide additional peace of mind for business owners.
Note that it has a relatively low cash back or point earning rate compared to other business credit cards on the market. Additionally, the card’s 3% foreign transaction fee may not make it the best choice for businesses that frequently travel overseas.
The Business Platinum Card from American Express
The Business Platinum Card from American Express is a high-end credit card option for LLCs that offers a range of premium benefits and rewards. Some key features and benefits of The Business Platinum Card from American Express include:
- Welcome Offer: Earn 100,000 Membership Rewards points after you spend $15,000 on eligible purchases within the first 3 months of account opening
- 5X Membership Rewards points on flights and prepaid hotels on amextravel.com
- 1.5X Membership Rewards points on eligible purchases of $5,000 or more
- Up to $200 in statement credits each year for Dell purchases
- Up to $200 in annual airline fee credits
- Complimentary access to over 1,300 airport lounges worldwide through the American Express Global Lounge Collection
- Elite status with Hilton Honors and Marriott Bonvoy hotel loyalty programs
- Premium benefits at Fine Hotels & Resorts properties
- Concierge service and 24/7 travel assistance
- No foreign transaction fees
- Online account management and tracking tools
- Annual fee of $695
The Business Platinum Card from American Express comes with a significant annual fee, which may not be suitable for all businesses. This fee may be prohibitive for some businesses, especially those with lower spending volumes. Additionally, the card’s rewards program may not be as valuable for businesses that don’t spend much on travel or hotel purchases.
Overall, The Business Platinum Card from American Express is a premium business credit card that offers a range of benefits and rewards for LLCs that value travel and purchasing perks. However, it’s important to carefully consider your business’s spending patterns and needs before choosing this card, as its high annual fee may not be justified for all businesses.
Capital One Spark Cash for Business
The Capital One Spark Cash for Business is a credit card designed specifically for small businesses and LLCs that want to earn cash back on their everyday purchases. This card offers a variety of features and benefits that can help businesses manage their expenses and cash flow more effectively.
Here are some key features and benefits of the Capital One Spark Cash for Business credit card:
- Unlimited 2% cash back on all purchases
- One-time $500 cash bonus when you spend $4,500 in the first 3 months of account opening
- No foreign transaction fees
- Free employee cards with customizable spending limits
- Fraud coverage and purchase protection
- Online account management and tracking tools
- Optional year-end summaries for easy tax reporting
- No annual fee for the first year, then $95 per year after that
- Introductory 0% APR on purchases for the first 12 months, then a variable APR based on creditworthiness
A downside of the Capital One Spark Cash for Business is its annual fee of $95 per year after the first year. However, the introductory 0% APR on purchases for the first 12 months can help offset this cost, and the ongoing 2% cash back rewards program can be a valuable long-term benefit for businesses.
Overall, the Capital One Spark Cash for Business can be a valuable option for LLCs that are looking for a simple, straightforward cash back rewards program and flexible account management tools.
Discover it Business Card
The Discover it Business Card can be a good recommendation for LLCs that want a straightforward and flexible rewards program without paying an annual fee. The card’s unlimited 1.5% cash back on all purchases can provide a reliable stream of rewards for businesses of all sizes and types. More features include:
- Earn unlimited 1.5% cash back on all purchases
- No annual fee
- Introductory 0% APR on purchases for the first 12 months, then a variable APR of 14.99% – 22.99%
- Employee cards at no additional cost with the ability to set individualized credit limits for each card
- Free business credit score monitoring with alerts to help you stay on top of your credit
- Fraud protection and zero liability protection for unauthorized purchases
- 100% US-based customer service
- Cash back rewards never expire and can be redeemed at any time for statement credits or direct deposits to your bank account
- No foreign transaction fees
- Access to the Discover business card management portal for online account management and reporting tools
Overall, the Discover it Business Card can be a solid choice for small businesses that want a simple and transparent rewards program without any annual fees. The card’s fraud protection and zero liability protection for unauthorized purchases can provide additional peace of mind for business owners, while the free business credit score monitoring and alerts can help businesses stay on top of their credit health.
However, businesses with more specialized needs or higher spending volumes may want to explore other options with more targeted rewards programs or additional features. Also, the Discover it Business Card has limited acceptance outside the US, as Discover is not as widely accepted as some other card networks. Businesses that frequently travel internationally or have significant international expenses may want to consider other options with broader acceptance.
Chase Ink Business Preferred Credit Card
The Chase Ink Business Preferred Credit Card is a good choice for LLCs and businesses that frequently spend in the bonus categories and want flexible redemption options through airline and hotel loyalty programs. The generous sign-up bonus can provide a significant boost to rewards earning potential, and the ability to transfer points to other programs can offer even more value.
This card has the following key features and benefits:
- Earn 3 points per $1 on the first $150,000 spent on travel, shipping purchases, internet, cable and phone services, and advertising purchases with social media and search engines each account anniversary year
- Earn 1 point per $1 on all other purchases
- 100,000 bonus points after spending $15,000 on purchases in the first 3 months from account opening – a value of $1,250 when redeemed through Chase Ultimate Rewards
- Points can be transferred to a variety of airline and hotel loyalty programs at a 1:1 ratio for maximum flexibility
- No foreign transaction fees
- Travel and purchase protection benefits, including trip cancellation/interruption insurance, auto rental collision damage waiver, and purchase protection against damage or theft for up to 120 days
- Employee cards at no additional cost with the ability to set individualized credit limits for each card
- Online account management and reporting tools to help track expenses and monitor account activity
- $95 annual fee
Note that the Chase Ink Business Preferred Credit Card is its annual fee of $95, which may not be worth it for businesses that don’t spend heavily in the bonus categories or don’t use the travel and purchase protection benefits. Additionally, the card’s bonus categories may not align with every LLC’s spending patterns, so it’s important to evaluate the rewards earning potential based on individual spending habits.
Overall, the Chase Ink Business Preferred Credit Card can be a strong choice for LLCs that want a versatile rewards program and robust travel and purchase protection benefits, as long as they are willing to pay the annual fee and spend heavily in the bonus categories. The card’s travel and purchase protection benefits can also be valuable for LLCs that frequently travel or make significant purchases, while the ability to set individualized credit limits for employee cards can help business owners manage expenses more easily.
U.S. Bank Business Platinum Card
The U.S. Bank Business Platinum Card is an attractive credit card for LLCs that need to make large purchases or transfer high-interest balances, as the 0% introductory APR can provide significant savings. The card’s benefits and key features include:
- 0% introductory APR on purchases and balance transfers for the first 15 billing cycles, followed by a variable APR
- No annual fee
- Employee cards at no additional cost with the ability to set individualized credit limits for each card
- Mobile and online account management tools to help track expenses and monitor account activity
- Fraud protection and zero liability for unauthorized purchases
- Free access to TransUnion credit score and credit monitoring services
- Discounts on eligible business expenses through the Visa SavingsEdge program
- Optional overdraft protection for business checking accounts
- A variety of travel and emergency assistance services, including travel accident insurance, auto rental collision damage waiver, and emergency ticket replacement
Unfortunately, the U.S. Bank Business Platinum Card does not have a rewards program, which means LLCs won’t earn cash back or points on their purchases. Still, the lack of an annual fee and the ability to set individualized credit limits for employee cards can be beneficial for businesses looking to manage expenses. Additionally, the discounts available through the Visa SavingsEdge program can provide additional savings on eligible business expenses.
Overall, the U.S. Bank Business Platinum Card can be a solid choice for businesses that need to make large purchases or transfer balances and want low costs and flexibility in payment options. The lack of rewards may be a trade-off for some LLCs, but the card’s other benefits can provide value in other ways.
CitiBusiness AAdvantage Platinum Select World Mastercard
The CitiBusiness AAdvantage Platinum Select World Mastercard is a credit card designed for small and mid-sized businesses. It offers rewards in the form of AAdvantage miles that can be redeemed for flights and other rewards. LLCs can enjoy the following features of this card:
- Earn 2 AAdvantage miles per $1 spent on eligible American Airlines purchases, telecommunications merchants, cable and satellite providers, car rental merchants, and gas stations
- Earn 1 AAdvantage mile per $1 spent on all other purchases
- Earn a welcome bonus of 70,000 AAdvantage bonus miles after spending $4,000 in purchases within the first 4 months of account opening
- Annual fee of $99, waived for the first year
- First checked bag is free on domestic American Airlines flights for the cardholder and up to 4 companions on the same reservation
- Priority boarding on American Airlines flights
- 25% savings on eligible inflight purchases on American Airlines flights
- No foreign transaction fees
- Fraud protection and zero liability for unauthorized purchases
- Access to Mastercard Easy Savings program for automatic rebates on eligible purchases at participating merchants
- Ability to share miles with other AAdvantage members
- Free employee cards with individual credit limits
The card’s annual fee of $99, waived for the first year, may be a turn-off for some, but the benefits of the card can easily outweigh this cost for frequent American Airlines flyers. The first checked bag free, priority boarding, and inflight purchase discounts can provide significant value for LLCs that travel often. The generous rewards program and welcome bonus can help businesses earn AAdvantage miles quickly, which can then be redeemed for flights and other rewards.
Overall, the CitiBusiness AAdvantage Platinum Select World Mastercard can be a great option for businesses that frequently travel with American Airlines. While it has limited earning categories, which may not be as broad as other rewards cards, it can be a valuable addition to an LLC’s wallet with these features along with fraud protection, no foreign transaction fees, and access to Mastercard Easy Savings program for automatic rebates on eligible purchases at participating merchants.
Using Your Business Credit Card Wisely
While a business credit card can be a valuable tool for managing your LLC’s finances, it’s important to use it wisely. Here are some tips to help you make the most of your business credit card:
Keep business and personal expenses separate: Use your business credit card only for business expenses to avoid commingling funds and to make it easier to track your LLC’s expenses for tax purposes.
Pay your bill on time: Late payments can damage your credit score and result in fees and interest charges. Make sure to pay your bill on time, or even early, to avoid these penalties.
Monitor your spending: Regularly review your credit card statements and monitor your spending to ensure that you’re staying within your budget and not overspending.
Take advantage of rewards and benefits: Make the most of the rewards and benefits offered by your business credit card, such as cash back, points, or discounts on business-related expenses.
Use your card responsibly: Don’t use your business credit card for personal expenses or make purchases that your LLC can’t afford to repay. Using your card responsibly can help you build your LLC’s credit and establish a positive relationship with your card issuer.
Verdict
Choosing the right business credit card for your LLC is an important decision that can have a significant impact on your company’s financial management. By considering factors such as rewards and benefits, annual fees, interest rates, credit score requirements, additional fees, and customer service, you can choose a card that best suits your LLC’s needs.
Once you have chosen your business credit card, it’s important to use it responsibly by keeping business and personal expenses separate, paying your bill on time, monitoring your spending, and taking advantage of rewards and benefits. By doing so, you can use your business credit card as a valuable tool for managing your LLC’s finances and helping your business grow.