Can You Get a Business Credit Card With an LLC?

Securing a business credit card helps Limited Liability Company (LLC) owners manage operational expenses and separate business finances from personal ones. This separation is important for maintaining the LLC’s legal and financial integrity, streamlining accounting, and establishing a distinct financial identity.

Understanding Application Requirements

Lenders assess several factors when an LLC applies for a business credit card. While an LLC is a separate legal entity, information about the individual owner is often required, especially for newer businesses without an established credit history. This ensures the lender has a comprehensive view of creditworthiness.

The LLC owner’s personal credit history is a primary consideration. For new LLCs lacking a robust business credit profile, lenders rely on the owner’s personal credit score to evaluate the application. A strong personal credit score, such as a FICO score of 670 or higher, improves approval chances for business credit cards.

Most business credit cards for LLCs require a personal guarantee from at least one owner. This means the individual assumes personal responsibility for the debt if the business cannot fulfill its repayment obligations. This guarantee provides an additional layer of security for the lender, mitigating risk for newer businesses.

Applicants must provide specific business information, including the LLC’s legal name, physical address, and Employer Identification Number (EIN). Business type, industry, and annual revenue are standard data points that help lenders understand the company’s financial standing. Some issuers may consider personal income or sales projections even if the LLC has no current revenue.

The age of the LLC can influence lender decisions. Businesses operational for two years or more often have a more established financial track record, which lenders view favorably. Newer LLCs can still qualify by leveraging the owner’s personal credit history.

The Application Process

Once an LLC owner gathers the necessary information, the application process for a business credit card begins. Most card issuers offer online application portals. Preparing all required documents beforehand can help streamline this process.

The application form requests business details, such as the LLC’s legal name, EIN, and reported annual revenue. Personal information of the guarantor, including their Social Security Number and personal income, is also required.

After completing the form, the application is submitted. The review period for approval can vary; some applications receive instant approval, while others take several days to a few weeks for manual review. Additional information may be requested, and promptly responding can help prevent delays.

Upon approval, the card issuer provides details about the new credit card. It typically takes 7 to 10 business days for the physical card to be mailed. Some issuers may offer a virtual credit card number for immediate use.

Separate Credit Profiles

Using an LLC business credit card helps establish distinct financial identities for the business and its owner. This separation is a fundamental aspect of the LLC structure, limiting the owner’s personal liability for business debts.

Business credit card activity is reported to commercial credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Business. This builds a separate business credit history for the LLC, independent of the owner’s personal credit. A strong business credit profile can facilitate future access to financing.

While a personal guarantee links the owner’s personal liability to the business’s debt, transactional activity on the business card primarily impacts the business’s credit profile. Regular spending and payment behavior typically do not directly affect the individual’s personal credit score unless a default triggers the personal guarantee. However, some issuers may report negative activity, such as late payments, to personal credit bureaus if a personal guarantee is in place.

Maintaining a dedicated business credit card for LLC expenses helps differentiate business transactions from personal ones. This financial separation is important for accurate record-keeping, simplified tax preparation, and upholding the LLC’s legal integrity. It reinforces the distinction between the business as a separate legal entity and the personal finances of its owner.