So you thought of a great business name one day and you finally took the plunge and officially registered it as a company. You then opened a company bank account utilizing your company’s Articles of Incorporation. After that, you ordered checks and called it a day. Within a week or so, you start getting flooded with credit card offers under the new company name. At this point, you decide to look into them further. You ask yourself, “Why should I get a business credit card?”

There are many reasons to apply for and obtain a business credit card. Some of the obvious reasons include separating business costs from personal costs to allow for easier accounting. At the end of the year, an account summary of expenses can be obtained from the majority of credit card providers which can be utilized as a reference for taxes. Categories of expenses are provided along with amounts (Year-End Summaries). Pending your location, another reason to use a business credit card is that it helps limit liability. In the unfortunate event your company files for bankruptcy, you may be spared from personal liability for its debt (in the United States, anyway). Additionally, company credit cards sometimes offer benefits to businesses you otherwise wouldn’t receive with a personal card. Occasionally, the cashback offers will be higher along with higher credit card limits. You are typically provided free employee credit cards as well. These are just a few of many benefits of the business credit card.

In summary, the benefit of a business credit card over personal consumer cards include better expense organization for tax purposes and reduced liability for its debt should the company fail. The debt liability reduction is usually if you are a LLC or Corporation. Finally, three great brands for business credit cards include Citi Bank, Capital One, and American Express.

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