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6 Things You Should Know Before Getting A Business Credit Card And Bank Account

It’s not as easy as getting a personal bank account, but you should still get one for the benefits.

1. Business Credit

Business credit card decisions can take up to 30 days to receive in the mail. Not all business credit card decisions take a while to receive, but they often take longer than personal credit card decisions. When first establishing business credit, credit companies will utilize your personal credit history and consider you a guarantor if you default on your business credit. Consequently, the better your credit, the better your options.

2. You Can Get Business Accounts In Your Name

A legal entity is not always required to open a business account. You can get a business account in your name as a sole proprietor. The only difference is that you and your assets will not be protected (e.g., lawsuits or defaulting on a business loan).

The IRS recommends you separate your business income from your personal income. It makes things easy for everyone, keeping things organized and in one place.

Five primary business types include:

  • LLC
  • C corp
  • S corp
  • Nonprofit
  • Sole prop

3. Your Household Income Might Be Half A Million Dollars & You Still Might Get Declined For A Business Account.

Getting a business bank account is not as easy as getting a personal bank account. When you enter the banking business world, everything is a higher risk for banks since you will have access to higher credit lines, higher personal loan amounts, and high-quality banking products unavailable to non-business users.

Your household income could easily cover all of your business expenses, and you still could get declined. Don’t be deterred; a bank out there will approve you. The trick is finding one that goes easier on new and small business owners or one that you have a long-standing relationship with that hasn’t been f*cked with by you.

4. Don’t Be Thirsty And Apply for Too Much Credit At Once.

New and small business owners need capital, and some will try to get it through credit applications. A good rule of thumb to follow for credit card applications is to wait at least six months between applications.

Stretch out your applications, and while you’re at it, treat your credit cards responsibly. The best way to do this is to be a deadbeat credit card user (someone who pays off their credit in full each month or only carries balances of 1–5% their total credit limit).

5. Getting A Business Account Will Help Save You Time & Money.

I love to write sh*t off on my taxes - legally. When you have a business, you provide yourself the opportunity to more safely and conveniently write off many of your business expenses. The IRS loves organization and separated finances.

Not only will you have access to more capital to finance your business, but you will have access to better rates and products. Another benefit is you will have all of your finances in one place, so you don’t have to worry about your business transactions getting lost in your personal accounts. It can get tedious to keep track of business expenses in personal accounts; inevitably, things get mixed up. Time is money.

Why not have everything in distinct places to keep you sane?

6. Many Businesses Are Considered High Risks

If your business gives financial, investing, or credit counseling or advice, you may get automatically declined by some banks who consider this function high risk. But wait, there is a whole list of risky businesses that banks will think more than twice about letting open a business account and getting access to loans and lines of credit. If you’re interested, see the complete list here.


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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.

Photo by Anete Lusina

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