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    6 Replies Latest reply on Mar 26, 2008 9:47 AM by ndp125

    Business Credit Card

    ndp125 Adventurer
      What is the procedure for applying for business credit card. I had gone to BOA and the person mentioned that it is just like a regular credit card application. However in this case they require the Business Tax ID.

      I have been receiving payments as an individual proprietor however I
      only recently incorporated my business and therefore will receive
      payment in my businesse's name next year.

      My question is if I incorporated the business this year and am still waiting to get my first paycheck in company's name would it be better to wait for few months and then apply ?

      F.Y.I - Business is in consulting and I do not need a loan just a credit card so that I can keep my business expenses seperate.


      Please let me know
        • Re: Business Credit Card
          LUCKIEST Guide
          125, Once you have incorporated, you receive a Federal I D Number ( Business Tax ID)
          Once you have a Fed I D Number, then you open a business checking account
          and apply for the Credit Card. You DO NOT NEED TO WAIT FOR INCOME.
          Everybody in business should have an Accountant, a Lawyer and maybe an Insurance Agent,
          Your business sounds interesting
          Your primary area of expertise is in Image Analysis, Programming and IT consultation/training.
          This has been ongoing since April 15 2007 and we have already generated revenue as an individual proprietorship.
          Do you know about SCORE?? SCORE is FREE and help businesses succeed.
          Good luck, LUCKIEST
            • Re: Business Credit Card
              ndp125 Adventurer
              Thanks Luckiest for the quick response.
              I have already visite SCORE based on your suggestion. Thanks.


              My business is S-corp based company in Mass.
              Yes I do have a Tax consultant and I am in the process of hiring legal help.

              I am also asking because I want to understand the basis for credit limit for business credit card. How much limit can I ask for ? Should I have only one or can I have two to bettter divide my expenses.

                • Re: Business Credit Card
                  puzzleman Tracker
                  The number of credit cards you get are up to you. I personally use 4 different cards. Each card has different purposes so that is easier for me to keep track of different expense categories. some can do it all with one but I am kind of like to keep the paperwork easy for me.

                  As far as getting a credit card before sales, trust me that companies will notice your new company tax number and will send you offers from all over. Thsi is from my personal experience. You will have your pick soon enough.

                  • Re: Business Credit Card
                    LUCKIEST Guide
                    If I was starting out NOW, I would GET a FEW credit cards
                    in your business name. Like Costco American Express (one card)
                    Staples or Home Depot, a Bank and a Visa card.
                    Use them (NOT ALL, NOT EVERY MONTH) and pay off the balances each monthly.
                    That way you establish GOOD CREDIT
                • Re: Business Credit Card
                  Lighthouse24 Ranger

                  There's no particular advantage in waiting until you have revenue to apply for a business credit card. As Puzzleman indicated, it only takes a couple of weeks from when your business registration is filed to start getting business credit card applications in the mail from pretty much everyone that offers a business card.

                  Keep in mind that it can potentially have a negative impact on your credit rating to get carried away and apply for too many in a short time frame, as each credit application will generate a separate inquiry. So as Luckiest indicated, it's good to choose and apply for one bank (Visa) card, an AMEX card if desired, and a couple of cards with vendors/suppliers that will help your business establish its own credit history.

                  If you have good personal credit, the issuer will probably set your credit limit adequately high to begin with -- but if not, you can easily ask for it to be increased when needed. My bank and AMEX were both very accommodating in that regard when I won a contract that was significantly larger than anything I had done up to that point (and I needed to purchase a volume of supplies and materials that were beyond my credit limit at the time). That's one advantage in visiting with your banker on occasion and keeping him/her aware of your situation.


                  Hope this helps. Best wishes.