Business credit cards are an important tool to help LLCs (Limited Liability Companies) divide personal and business expenses and build a strong enough credit profile to become eligible for business loans and larger lines of credit.
According to the Federal Reserve Bank of Atlanta, 77% of U.S. adults hold at least one credit card. So by choosing a credit card that offers the right mix of rewards and benefits, LLCs can support better financial health and cash flow while offering valuable perks to business owners.
In this blog, we’re going to cover 10 of the best business credit cards available for LLCs, and what your LLC needs to consider to choose the right credit card for your needs.
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- Business credit cards offer benefits such as streamlined financial management, separation of personal and business expenses, and an enhanced business credit profile.
- The right business credit card will depend on the type of business you run, whether you are a sole proprietor, and what spending categories you will be using the most.
- When selecting the right business credit card, LLCs should consider factors such as fees, rewards, features, spending categories, and additional services to ensure it aligns with their specific needs.
Benefits of Business Credit Cards for LLCs
Financial management
It’s far easier to manage personal finances if your LLC’s ingoings and outgoings are contained to its own ecosystem. A business credit card makes it easy to track and categorize business purchases by keeping expenses isolated to a single account, rather than being split between personal credit cards and business accounts. This minimizes the time it takes to reconcile your accounts at the end of the financial year.
Separation of personal and business expenses
It’s vital that business owners maintain a separation between personal and business spending to ensure accurate record-keeping and minimize personal liability. Having a dedicated business credit card not only simplifies filing taxes and tracking expenditures, but provides more legal protection in the event of a lawsuit or bankruptcy.
Enhancing business credit profile
Separating your personal credit score from your LLC is important to build business credit. A strong business credit score makes it possible for your business to access bigger lines of credit and more generous loan terms, which sets up your LLC for better stability and growth opportunities. Business credit cards are a crucial tool to build creditworthiness by demonstrating that your company has the ability to borrow money and pay it back according to an agreed-upon schedule, especially for startups and new businesses.
Employee expense management
LLC employees need a way to manage expenses effectively so they aren’t having to pay out of pocket for business needs. Employee cards offer an easy way for companies to give select employees a spending limit to manage expenses for either a department or specific business functions. Plus, this makes it easy for LLCs to track spending activity from all of their cardholders with each billing cycle, reducing the administrative burden of processing and checking invoices.
Rewards and perks
Getting a dedicated business credit card allows your LLC to access valuable cashback rewards and bonus points that are tailored to businesses and commercial entities. Other credit card offers include welcome bonuses, travel rewards, rewards points at office supply stores, and more. Using a business credit card to manage large purchases enables you to maximize these benefits and cost savings to improve cash flow. Some credit card issuers also offer useful services such as extended warranties, purchase protection, and travel insurance.
Top 10 Business Credit Cards for LLCs
1. The Chase Ink Business Preferred® Credit Card
The Chase Ink Business Preferred® Credit Card is well-suited for LLCs who want a variety of options for how and where they can redeem points. The card also offers one of the most generous welcome bonuses, which is a great option for businesses that have bigger expenses coming up and want to maximize points earned.
Fees
Annual fees: $95
Variable APR: 20.99%–25.99%
Rewards
- 100,000 bonus points after you spend $8,000 on purchases in the first 3 months after account opening.
- Earn x3 points on shipping purchases, social media and google ad spend, internet, cable, and phone services.
- 5x points on Lyft Rides
- Access to Chase Ultimate Rewards
- Points are redeemable for cash back, gift cards, and travel experiences.
Features
- Trip Cancellation/Trip Interruption Insurance
- No point expiration
- Purchase protection
- Complimentary employee cards
- No foreign transaction fees
2. Bank of America® Business Advantage Travel Rewards World Mastercard®
The Bank of America® Business Advantage Travel Rewards World Mastercard® offers versatile reward options on all business expenses, rather than specific spending categories. The lack of annual fees and 0% APR makes this card a great option for small businesses that want less costly maintenance fees, though you will need to do the majority of your business banking with Bank of America to access all of the rewards.
Fees
Annual fee: $0
Intro APR: 0% for 9 billing cycles
Variable APR: 18.24% – 28.24%
Rewards
- Earn 30,000 bonus points after you make at least $3,000 in net purchases in the first 90 days of your account opening.
- Earn 1.5 points per dollar spent on all purchases.
- Earn up to 75% more points on every purchase if you have a business checking bank account with Bank of America®.
Features
- Overdraft protection
- Unlimited points earning
- No foreign transaction fees
- Free credit score checks
3. Wyndham Rewards Earner® Business Card
The Wyndham Rewards Earner® Business Card is offered in partnership with Barclays and Wyndham Rewards, and offers small business owners with frequent travel needs a solid option for earning bonus reward points. Wyndham Rewards offers some of the most robust rewards for gas purchases, as well as decent rewards for other business expenses like cellphone bills.
Fees
Annual fee: $95
Annual Percentage Rate (APR): 20.99% – 29.99%
Rewards
- Earn 50,000 bonus points after spending $3,000 in the first 90 days.
- Earn 25,000 bonus points after spending $10,000 within the first 12 months.
- Earn 8 points per $1 spent on qualifying gas purchases.
- Earn 5 points per $1 spent on eligible marketing and advertising expenses.
Features
- Unlimited points earning
- Cellphone protection against damage or theft
- Complimentary employee cards
- Fraud liability protection
- No foreign transaction fees
4. The Chase Ink Business Cash Visa Credit Card
The Chase Ink Business Cash Credit Card is a good fit for LLCs whose main business expenses are in the office supply and telecom categories. The card requires a less robust credit history than other comparable business cards, which makes it suitable for startups and small businesses that haven’t had time to accrue a higher score. However, the capped bonus rewards aren’t the best option for big spenders.
Fees
Annual fee: $0
Intro APR: 0% for the first 12 months
Variable APR: 18.24% – 24.24%
Rewards
- $750 bonus cash back after you spend $6,000 on purchases in the first 3 months after account opening.
- Earn 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.
- Earn unlimited 1% cash back on all purchases.
Features
- Referral program for other business owners
- Recurring billing feature
- Complimentary employee cards
- Zero Liability Protection
- Fraud alerts
5. The American Express Business Platinum Card
The American Express Business Platinum Card is a premium credit card geared towards business owners who want more exclusive travel benefits and rewards, such as airport lounge access and premium check-in privileges. In addition to travel rewards, the platinum card also offers other business benefits, such as bonus points on technology expenses and credit for recruitment websites.
Fees
- Annual fee: $695
- Annual Percentage Rate (APR) for Pay Over Time: 19.24% – 27.24%
- Penalty APR: 29.99%
- Late Payment: $39 or 2.99% of the amount due (whichever is greater).
Rewards
- 5X points on flights & hotels booked with Amex Travel
- Earn 1.5X Membership Rewards® points on eligible purchases at electronics retailers, software providers, and shipping providers.
- Access to over 1,400 airport lounges across 140 countries
- Up to $200 in Airline Fee Credits
Features
- No Foreign Transaction Fees
- Baggage insurance plan
- Car rental loss and damage insurance
- Credit for Global Entry or TSA PreCheck®
- Dispute resolution
6. American Express® Business Gold Card
The American Express® Business Gold Card is designed for LLCs who are looking for flexibility in spending and points redemption. The 4x points earning feature is well-suited to high-spending businesses whose expenses are isolated to a couple of key spending categories.
Fees
- Annual fee: $295
- Annual Percentage Rate (APR) for Pay Over Time: 19.24% – 27.24%
- Penalty APR: 29.99%
- Late Payment: $39 or 2.99% of any past due Pay in Full amount, whichever is greater.
Rewards
- Welcome off of 70,000 Membership Rewards® Points after you spend $10,000 on eligible purchases in the first 3 months.
- Earn 4X Membership Rewards® points on the top 2 categories where your business spends the most each billing cycle, plus earn 1X on other purchases.
Features
- Pay Over Time features lets businesses carry a balance with interest on eligible purchases
- No preset credit limit
- Employee cards available
- Quickbooks integrations
- No foreign transaction fees
7. Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
The Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card is tailored for businesses whose business expenses are focused on one spending category, as this allows them to quickly accumulate reward points. Earn rates can also be boosted if you qualify for Bank of America® Preferred Rewards for Business.
Fees
Annual fee: $0
Intro APR: 0% APR for the first 9 billing cycles
Variable APR: 18.24%-28.24%
Rewards
- $300 online statement credit bonus offer
- Earn 3% cashback in your chosen category(includes gas stations, office supply stores, travel, telecom, computer services, or business consulting services.
- Earn 3% and 2% cashback on the first $50,000 in combined choice category/dining each calendar year.
- Earn unlimited 1% cashback on all other purchases.
Features
- Change your 3% cashback category once per month.
- Fraud monitoring
- Zero liability protection
- $100,000 in travel accident insurance
8. Capital One Spark 1% Classic credit card
The 1% classic credit card is a great starter business credit card for LLCs. Although it doesn’t earn the biggest rewards, this card is a good option for businesses with low to average credit scores. Responsible use of the card will help LLCs to build their score to pass credit checks for business loans or credit cards with higher limits. The Spark 2% Cash Plus or Spark 1.5% Cash Select Excellent Credit are also available to those with higher credit scores.
Fees
Annual fee: $0
Variable APR: 30.49%
Rewards
- Earn 1% cash back on all purchases.
- No expiration date on cashback rewards
- Capital One Lounge access
- Credit for Global Entry or TSA Pre✓®
Features
- Complimentary employee cards with customizable spending limits
- No foreign transaction fees
- Extended warranty
- AutoPay feature
9. The American Express Blue Business Cash
Thanks to its fast approval process for good credit scores, The American Express Blue Business Cash credit card is designed for businesses who want a solid cashback option quickly. The Expanded Buying Power feature is valuable for businesses that face fluctuating expenses during certain stages of the year and would benefit from a temporary credit increase for cash flow purposes.
Fees
Annual fees: $0
Intro APR: 0.0% on purchases for 12 months from the date of account opening
Variable APR: 18.24% – 26.24%
Rewards
- 2% cashback on everyday eligible business purchases, up to $50k per year.
- 1% cashback on other eligible purchases after the first $50k spent on your card.
Features
- Expanded Buying Power allows businesses to temporarily spend above their credit limit
- Car rental loss and damage insurance
- Purchase Protection
- Extended warranty
- Global Assist® Hotline travel support
10. U.S. Bank Triple Cash Rewards World Elite Mastercard®
The U.S. Bank Triple Cash Rewards World Elite Mastercard® is a great all-around option for businesses who want to earn rewards in multiple areas while keeping maintenance fees low. The card has one of the longest 0% APR periods on the market, as well as a low threshold to qualify for the welcome bonus reward.
Fees
Annual fees: $0
Intro APR: 0% for first 15 billing cycles
Variable APR: 16.99% – 25.99%
Rewards
- $500 cashback when you spend $4,500 within the first 150 days of account opening.
- 5% cashback on prepaid hotels and car rentals booked via the Travel Rewards Center.
- 3% cashback at eligible gas and EV charging stations, restaurants, office supply stores, and cell phone providers.
- 1% cashback on all regular purchases.
Features
- ExtendPay® Plan feature allows large purchases to be split into zero-interest fixed monthly payments for a monthly fee
- $100 annual statement credit for software services
- Extended warranty protection
How to Evaluate a Business Credit Card
Identifying business needs
The right business credit card for your LLC’s needs will depend on the type of business you run, whether you are a sole proprietor, and what spending categories you will be using the most. Assessing your needs this way will help you to narrow down the best credit card options that maximize rewards and cost savings. Whichever card you select, you need to be prepared to share the following information:
- Social Security Number
- Employer Identification Number
- LLC registration
- Personal guarantee
Assessing spending patterns
Small business credit cards frequently offer better rewards for eligible purchases, such as gas stations or office supply stores. It’s important to create a list of your biggest expenses to understand what sorts of rewards will be the most valuable to your business and result in the biggest cost savings.
Importance of reward programs
There’s a wide range of reward programs available via business credit cards, including travel rewards, cashback, or access to various services. It’s important to check the T&Cs of each program to understand the rules surrounding balance transfers, points expiration, and any additional costs to determine which program offers your LLC the best benefits.
Evaluating interest rates and fees
Business credit cards come with different annual percentage rates (APR), annual fees, and foreign transaction fees, so LLCs need to compare options to find out which bank business offers them the best value for the money. It’s important to consider that some cards may offer a favorable introductory APR for the first year after account opening before reverting to a variable APR, so it’s important to read what terms apply and consider the potential impact of these charges on your cash flow.
Importance of considering credit limit
Different business credit cards may offer your LLC different credit limits, so you need to choose the one that fulfills your business’s needs and expected expenses. An excellent credit score is essential for qualifying for a high credit limit. However, be aware that any balance must be paid off to avoid getting into a debt spiral and affecting business profitability.
Review of additional features and services
Depending on the bank providing the credit card, there may be additional supporting features that help you to utilize the card more effectively. This includes budgeting tools, fraud protection, and software integrations that make it easier to run your business.
Final words
Choosing the right business credit card for your LLC is important to streamline financial management, maximize reward earnings, and build your business credit score to access better loan opportunities from lenders. The selection of credit cards above provides a range of options for businesses depending on their credit score, main spending categories, and required credit limit. However, it’s important to assess each card option before committing to ensure you can maximize the benefits, as well as meet any repayment requirements.
FAQs about Business Credit Cards
Q: What are business credit cards and why are they important for LLCs?
Business credit cards are financial tools used to facilitate business-related expenses. They are essential for LLCs as they help segregate personal and business expenses, improve financial management, and enhance the business’s credit profile.
Q: What are the benefits of having a business credit card for an LLC?
Business credit cards provide various benefits such as improved financial management, separation of personal and business expenses, an enhanced business credit profile, better employee expense management, and access to rewards and perks like cash back or travel rewards.
Q: What are some of the top business credit cards recommended for LLCs?
Some of the top business credit cards for LLCs include The Chase Ink Business Preferred® Credit Card, Bank of America® Business Advantage Travel Rewards World Mastercard®, Wyndham Rewards Earner® Business Card, Chase Ink Business Cash Visa Credit Card, and American Express Business Platinum Card.
Q: What factors should LLCs consider when choosing a business credit card?
LLCs should consider factors such as fees (annual fees, variable APR), rewards (welcome bonuses, reward points on specific purchases), features (purchase protection, complimentary cards), and the nature of their business and spending patterns.
Q: How can a business credit card improve an LLC’s credit profile?
Business credit cards are essential tools for building a strong business credit score. This score enables businesses to access larger lines of credit and better loan terms, promoting the company’s stability and growth opportunities.
Q: How does a business credit card help in employee expense management?
A business credit card allows LLCs to give certain employees a spending limit to manage business-related expenses effectively. It provides an easy way to track spending activity from all cardholders with each billing cycle, reducing the administrative load of processing and checking invoices.
Q: What perks and rewards does a business credit card offer to LLCs?
Business credit cards offer various rewards and perks such as cashback rewards, bonus points on specific purchases, welcome bonuses, travel rewards, points at office supply stores, and more. Some issuers also provide services such as extended warranties, purchase protection, and travel insurance.
Q: Which business credit card is best for LLCs with frequent travel needs?
The American Express Business Platinum Card is popular among business owners who travel frequently. This premium credit card provides exclusive travel benefits and rewards, such as access to over 1,400 airport lounges across 140 countries and up to $200 in Airline Fee Credits.
Q: How can a business credit card help separate personal and business expenses for an LLC?
A business credit card helps maintain a clear separation between personal and business spending, ensuring accurate record-keeping. This separation also minimizes personal liability and provides legal protection in events like lawsuits or bankruptcy.
Q: What specific benefits do the ‘Chase Ink Business Cash Visa Credit Card’ and ‘American Express Blue Business Cash’ offer?
The ‘Chase Ink Business Cash Visa Credit Card’ offers cash back on office supplies and telecom expenses. In contrast, ‘The American Express Blue Business Cash’ rewards businesses with cash back on everyday eligible purchases, helping to improve cash flow with its Expanded Buying Power feature.
