Jack DonaldIf you’re just planning to start a business or are already involved in the registration process, you have probably wondered whether you need a credit card to run a business. And the answer is yes. First of all, business credit cards for LLC are about convenience in financial management.
However, the opportunity to use business credit cards is not only a duty, but also a privilege for companies that are officially registered. It offers new prospects. Using a credit card provides a range of benefits, such as:
- Separation of personal and business assets to maintain the “corporate veil”;
- All expenses of your LLC are paid with your company credit card;
- Access to features and benefits not available to individuals, etc.
What is the best LLC business credit card among dozens of offers? What are the criteria to focus on?
You will find the answers in this article.
We will talk about the top 7 business credit cards for startups and outline their advantages and disadvantages. We’ll also discuss the features that make each of these LLC credit cards stand out from the many competitors.
7 Best Business Credit Cards for an LLC
When choosing a new business credit card, you should consider the specifics of your business. Each bank offers its own unique terms of cooperation, which will directly affect the development of the company. To choose the most favorable business credit card for your LLC, you need to take a close look at the offers available. To make it easier for you to structure the information, there are a few main criteria:
- Cashback;
- Credit;
- Spend;
- Annual fee.
After considering offers from the 7 most popular banks, in terms of the points mentioned above, we have got the following information.
1) Capital One Spark Cash for Business
Capital One Spark Cash is one of the first cards you should take into account when choosing a credit card for your LLC. This card is one of the best small business credit cards for new businesses and fits a lot of LLCs. It is easy to use, practical and convenient.
Cashback
No matter what purchases you make, you will get 2% cashback, that is unlimited.
Unlike many competitors, Capital One Spark Cash holders get rewards not only for regular office expenses, but also for other business expenses. For example, if you own a restaurant, this card is a good way to save money.
Credit
The loan amount is $670-$850.
The APR on purchases and balance transfers is 18,49%. There is no initial 0% annual interest rate.
Spend
If your spending reaches $4500 in the first 3 months, you’ll get a $500 bonus.
Annual fee
There is no service fee for the first year, but after that period, it will cost $95.
Other Benefits
Capital One Spark Cash allows you to get free cards for all employees of your business. In addition, they provide Capital One’s fraud protection.
2) Marriott Bonvoy Business American Express
In case your business is associated with travel, then these credit cards for LLCs are a great option for you. Marriott Bonvoy Business American Express cardholders have the most favorable terms in the industry.
Cashback
For every dollar you spend at Marriott hotels you will get 6 points, and 4 points – at restaurants and gas stations.
But that’s not all.
If you have Silver Elite status, it will give you 11 more points. So the maximum possible bonus from every $1 is 17 points.
Even though the value of 1 point is slightly less than a penny, the offer still looks tempting.
Credit
The amount of possible credit ranges from $650 to $850.
The APR is relatively high. You may have to pay between 15.74% and 24.74%.
Spend
If you spend at least $3,000 in the first 3 months, the bank will provide you with 75,000 bonus points.
Annual fee
There is a fee of $125 per year for using the card.
Other Benefits
All Marriott Bonvoy Business American Express holders are entitled to stay at the Marriott hotels for one free night once a year.
3) Capital One Spark Miles for Business
This new business credit card is similar to the Spark Cash for Business. However, its conditions are a bit more complicated and potential benefits are higher.
Cashback
As the name implies, with Capital One Spark Miles you will get 2 Miles for every dollar you spend. In comparison to the 2% that Spark Cash for Business offers, the value of Miles is slightly higher. This is especially valuable if you use Capital One’s airline or hotel services.
Credit
If you have a good credit history, you can get from $650 to $850.
The APR is 18.49%.
Spend
If you spend $4500 in the first 3 months, you will get $500 as a bonus.
Annual fee
There is a $0 intro annual fee for the first year, but after that you should pay $95.
Other Benefits
For TSA PreCheck or Global Entry apps, the cardholders get up to $100.
4) American Express Blue Business Cash
The next good option for your business is American Express Blue Business Cash. The features this card offers are almost as good as the leaders on this list. It’s a good choice for aspiring LLCs with a small budget.
Cashback
American Express Blue Business Cash offers 2% cashback on the first $50,000, after that it drops to 1%.
Credit
The cardholders can manage credit that ranges from $650 to $850.
The initial APR is 0% for the first year. From the second year, the rate increases and ranges from 13.24% to 19.24%.
Spend
There are no bonuses provided for meeting minimum spending requirements.
Annual fee
There is no annual fee.
Other Benefits
The card allows for zero-interest balance transfers for the first 12 months.
5) Chase Ink Business Unlimited
This business credit card is focused on small business and allows you to get some perks with minimal service expenses.
Cashback
Holders of the Chase Ink Business Unlimited card obtain unlimited cashback of 1.5% on every purchase.
Credit
Chase Ink Business Unlimited will offer a $500 credit, if you spend $3,000 in your first three months.
A 0% APR will be in effect for 12 months, and then it will increase to 14.74%-20.74%.
Spend
If you spend $7,500 on purchases in the first 3 months from account opening, then you will earn $750 bonus cashback.
Annual fee
There is no annual fee.
Other Benefits
In addition to free cards for LLC employees, Chase Ink Business Unlimited will offer comprehensive fraud protection.
6) Chase Ink Business Preferred
If you’re planning to open a business credit card that offers good cashback and is perfect for traveling, think about the Chase Ink Business Preferred.
Cashback
You can earn 3 points per $1 on the first $150,000 spent on:
- Shipping;
- Telecommunications;
- Travel;
- Advertising in social networks and search services.
After you spend $150 000, you will earn 1 point per $1 on all other purchases.
Credit
A perfect credit history will ensure that you can use a $700 loan.
A variable interest rate ranges from 15.99% to 20.99%.
Spend
The number of bonuses available to Chase Ink Business Preferred cardholders is impressive. You can get 100,000 points if you spend $15,000 in the first 3 months. That said, the real value of 1 point is just over a penny.
Annual fee
An annual fee is $95.
Other Benefits
Chase Ink Business Preferred provides perks such as:
- Comprehensive purchase protection;
- Trip cancellation/delay reimbursements;
- Up to $600 if your phone is damaged or stolen.
7) Business Platinum Card from American Express
Finally, another popular card for LLC is the Platinum Card from American Express. It will be of interest to companies with large budgets and significant travel expenses.
Cashback
As a cardholder, you can earn 5 points per $1 spent on airline tickets and hotels booked through amextravel.com. There is a cashback of 1 point on all other purchases.
Credit
This card gives you the opportunity of using an $800 – $850 loan.
The variable rate is 14.24% to 22.24% per year.
Spend
You should spend $20,000 in your first three months and you will get up to 75,000 bonus points.
Annual fee
The card is quite expensive to maintain. The annual fee is $595.
Other Benefits
Platinum Card from American Express holders get free access to 1,200 premium lounges at various airports around the world.
In addition, the card provides $200 airline credit for unexpected expenses and $100 for Global Entry or TSA PreCheck.
Moreover, 35% of bonus points used to book tickets are refunded.
How to get a business credit card
Separation of a company’s assets from the personal assets of its owners is an important condition for the limited liability protection. Therefore, obtaining business credit cards for new LLC is a mandatory step.
It is quite easy to do. There are three possible options:
- Visit the website of a reliable bank and apply for an LLC Business Credit Card to become their business customer;
- Check out all of the LLC business credit cards available on the Internet. Choose the one that best fits your company’s features and goals;
- Take an offer from one of the banks that sends advertisements for their products by mail. However, when choosing this method, it is better to prefer a well-known and reputable brand.
To open a business checking account, the bank may ask you to provide the following information:
- Your LLC name and address;
- EIN number;
- Personal and business annual income;
- Number of employees, etc.
In Conclusion
Thus, we have covered the most relevant and lowest business credit card that offers cashback service.
Among the huge variety of different LLC business cards, the options we have listed offer the best cost/benefit ratio. Keep in mind that none of them is universal.
Each business is unique and has its own specifics. Before you start a credit card company, you should first evaluate the goals and needs of your LLC to choose the card that fits them best.
