What name should I use for my business credit card application?

For many small business owners, a business credit card serves as a savvy and efficient tool to manage business-related expenses.

With the right card, you unlock numerous benefits beyond just an extended line of credit. Responsible usage can help you establish your business credit history. You might also earn rewards, get free employee cards, and gain access to expense management tools.

When you're prepared to apply for a business credit card, the process differs from applying for a personal credit card. Besides some personal details, you'll also need to provide various business-related information, including your business's duration, annual revenue, and employee count.

You'll need to provide your business name, which can either be your personal name or your official business name if you have one.

Unsure about which name to choose? Keep reading to discover more and help you make the right decision for your business credit card.

Reasons to consider a business credit card

There are numerous reasons to seek a business credit card — the most straightforward being that you have a functioning business and want to streamline your expense management.

Even if a business card isn't essential for you, it can help differentiate your work expenses from personal ones. Additionally, it can prevent your spending from being reported on your personal credit report, keeping your credit utilization lower and helping you maintain a better credit score.

Perhaps you're looking to earn some attractive sign-up bonuses without jeopardizing your chances for future personal credit card applications or facing restrictions like Chase's 5/24 rule.

What name should you use when applying for a business credit card?

The answer to this question hinges on your business structure. Banks typically allow you to indicate whether you're applying as a partnership, corporation, sole proprietorship, or other types. Some issuers, like Citi, present a plethora of options. Larger firms or those registered as corporations, LLCs, or partnerships can easily apply using their business name.

Things become a bit more intricate if you're solely a sole proprietor.

If you're uncertain about which business structure to choose, it's wise to consult a lawyer or tax expert. Many points enthusiasts will likely apply as sole proprietors or self-employed individuals for roles such as:

• DoorDash or Uber driver
• Pet sitter on Rover
• Freelance writer
• Babysitter

Choosing to apply as a sole proprietor is an excellent choice since you don’t need to file any forms with your state or federal government to set one up – you create a sole proprietorship simply by engaging in business. By taking this straightforward path, you'll use your own name to apply for business credit cards.

Certain banks (notably Chase) often request supporting documents prior to approving a business credit card application, such as proof of a physical address. By registering your business under your own name, you can provide rent or utility bills that match the details on your application.

How to obtain a credit card under your business name

Attracting customers relies heavily on branding, and perhaps you prefer not to name your new consulting firm after yourself. If your business operates under a name different from your legal name, you'll need to file a doing business as (DBA) form.

The specific rules regarding this (who, where, when, and what needs to be filed) differ from state to state. It's advisable to consult a legal expert before moving forward. This is an essential step before you can open a bank account or obtain a line of credit under your business name.

In many respects, this serves as a cautionary note: under no circumstances should you invent a business name for your application without first completing the required paperwork.

Not only will you have no options if a card issuer requests proof of your business, but you would also be committing fraud by claiming to be a business that doesn’t actually exist. For most business owners seeking to apply for business cards, the straightforward approach is to use your own name, keeping things simple and within the law.

Conclusion

Business credit cards can provide an excellent opportunity to earn additional sign-up bonuses, bonus spending categories, and other valuable benefits. If you meet the requirements for business credit cards, keep in mind that these applications are often subject to slightly more rigorous scrutiny than personal credit card applications.

Be ready to provide your business registration certificate or any other necessary documents if requested. If you're uncertain, it's wise to seek advice from a legal expert, and if you're applying as a sole proprietor, consider simply using your own name as the business name.