Best Small Business Credit Cards of 2024

You don't need to own a big business to see big rewards from a business credit card. Whether you're looking for bonus cashback rates on office supplies, a way to build business credit, or a card with no annual fee and a long 0% introductory APR period, there's a business card that will meet your needs.

Generous sign-up bonuses also sweeten the deal for small business owners and will likely leave you wanting to apply for multiple cards to take advantage of all the introductory offers and other cardholder perks. Hopefully, one of the credit card offers below provides just the perks and rewards that you're looking for to get the maximum benefit from your company card.

The best small business credit cards

Up to 5% Cash Back

Ink Business Cash^® Credit Card

4.8

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Ink Business Cash^® Credit Card

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Current Offer

Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening

Annual Fee

$0

Rewards Rate

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 year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year; and 1% cash back on all other purchases

Benefits and Drawbacks

Benefits

• Solid rewards on office supply, telecom spending, gas, and dining
• Generous welcome offer
• Intro APR on purchases
• $0 annual fee
• Valuable purchase and travel protections

Drawbacks

• Bonus rewards capped after $25,000 annual spend in each category
• No bonus rewards for travel or advertising purchases
• Foreign transaction fee of 3% of each transaction in U.S. dollars

Card Details

• Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six 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 year
• Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
• With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
• No Annual Fee
• Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
• 0% introductory APR for 12 months on purchases
• Member FDIC

Get 2% Back Automatically

The American Express Blue Business Cash™ Card

5.0

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

The American Express Blue Business Cash™ Card

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See rates and fees | Terms Apply

Current Offer

Earn a $250 statement credit after spending $3,000 on purchases in the first 3 months

Annual Fee

$0

Rewards Rate

2% cash back on the first $50,000 in eligible purchases each year, then 1% after that

Benefits and Drawbacks

Benefits

• $0 annual fee
• 2% cash back on the first $50,000 in eligible purchases each year, then 1% after that
• Flexible spending limit

Drawbacks

• Cash back drops after you hit annual spending limit
• 2.70% foreign transaction fee

Card Details

• Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
• 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 17.74% – 25.74%, based on your creditworthiness and other factors as determined at the time of account opening. APRs will not exceed 29.99%
• Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
• From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power.
• The amount you can spend above your credit limit is flexible, so it adapts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors. Just remember, the amount you can spend with Expanded Buying Power is not unlimited.
• No Annual Fee
• Terms Apply

Hot Welcome Bonus

Ink Business Preferred^® Credit Card

4.8

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Ink Business Preferred^® Credit Card

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Current Offer

Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening

Annual Fee

$95

Rewards Rate

3X points on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year; and 1X points per $1 on all other purchases

Benefits and Drawbacks

Benefits

• Generous welcome offer
• High rewards rate on common business expenses
• Flexible Ultimate Rewards points
• No foreign transaction fees
• Cell phone, purchase, and travel protections

Drawbacks

• Annual fee of $95
• $150,000 annual cap on bonus category spending
• No intro APR offer

Card Details

• Earn 90k bonus points after you spend $8,000 on purchases in the first 3 months from account opening. That's $900 cash back or $1,125 toward travel when redeemed through Chase Travel℠
• Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
• Round-the-clock monitoring for unusual credit card purchases
• With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
• Redeem points for cash back, gift cards, travel and more - your points don't expire as long as your account is open
• Points are worth 25% more when you redeem for travel through Chase Travel℠
• Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
• Member FDIC

Flexible Payment Options with Unlimited Rewards

Ink Business Premier^® Credit Card

5.0

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Ink Business Premier^® Credit Card

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Current Offer

Earn $1,000 bonus cash back after you spend $10,000 on purchases in the first 3 months from account opening

Annual Fee

$195

Rewards Rate

5% cash back on travel purchased through Chase Travel℠; unlimited 2.5% cash back on purchases of $5,000 or more; unlimited 2% cash back on all other business purchases

Benefits and Drawbacks

Benefits

• Earn $1,000 bonus cash back after you spend $10,000 on purchases in the first 3 months from account opening
• Opportunity to pay eligible purchases off over time with Flex for Business
• Employee cards earn rewards, and the cards are available at no additional cost

Drawbacks

• Has a high annual fee
• Most new cardholders must pay the balance in full monthly
• No option to transfer to travel partners or combine points

Card Details

• Earn $1,000 bonus cash back after you spend $10,000 on purchases in the first 3 months from account opening.
• Earn unlimited 2.5% total cash back on purchases of $5,000 or more and unlimited 2% cash back on all other business purchases.
• Travel Benefits: Unlimited 5% total cash back on travel purchased through Chase Travel℠, No Foreign Transaction Fees and Trip Cancellation/Trip Interruption Insurance.
• The only business credit card with 2.5% cash back on every purchase of $5,000 or more.
• Get the buying power you need to make large purchases, cover monthly expenses and help your business grow. While you must pay your Pay In Full balance each month, this card has built-in flexibility. The Flex for Business feature allows for qualifying purchases to be paid over time with interest.
• Purchase with confidence with built-in protections like Fraud Protection, Zero Liability Protection, Purchase Protection, Cell Phone Protection, and Extended Warranty Protection.
• There's no additional cost for employee cards. Monitor spend with digital tools like purchase alerts, set spending limits, reporting, and more.
• Member FDIC

Unlimited Cash Back

Ink Business Unlimited^® Credit Card

4.8

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Ink Business Unlimited^® Credit Card

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Current Offer

Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening

Annual Fee

$0

Rewards Rate

Unlimited 1.5% cash back on every purchase

Benefits and Drawbacks

Benefits

• $0 annual fee
• Elevated flat-rate rewards structure
• Generous welcome offer
• Intro APR offer on purchases
• Free employee cards

Drawbacks

• No bonus rewards for specific categories
• Foreign transaction fee of 3% of each transaction in U.S. dollars
• Limited travel perks

Card Details

• Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
• Earn unlimited 1.5% cash back on every purchase made for your business
• No Annual Fee
• Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
• Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
• Round-the-clock monitoring for unusual credit card purchases
• With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
• 0% introductory APR for 12 months on purchases
• Member FDIC

Simplified Earnings for Small Business Owners

The Blue Business^® Plus Credit Card from American Express

4.9

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

The Blue Business^® Plus Credit Card from American Express

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See rates and fees | Terms Apply

Current Offer

Earn 15,000 Membership Rewards points after you spend $3,000 on eligible purchases within the first 3 months of card membership

Annual Fee

$0

Rewards Rate

2X Membership Rewards points on everyday eligible business purchases up to $50,000 each year, and 1X points on eligible purchases after that

Benefits and Drawbacks

Benefits

• Elevated rewards on all eligible purchases up to $50,000 a year
• $0 annual fee
• Intro APR offer on purchases
• Flexible point redemption options
• Expanded buying power feature

Drawbacks

• Rewards cap after $50,000 spend
• 2.70% foreign transaction fee
• No category-specific bonus rewards

Card Details

• Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
• 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 17.74% - 25.74%, based on your creditworthiness and other factors at account opening. APR will not exceed 29.99%
• Earn 2X points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter. Terms and limitations apply.
• You’ve got the power to spend beyond your credit limit* with Expanded Buying Power. *The amount you can spend above your credit limit is flexible, so it adapts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors. Just remember, the amount you can spend with Expanded Buying Power is not unlimited.
• No Annual Fee
• Terms Apply.

High Rewards on Your Biggest Spending

American Express^® Business Gold Card

4.8

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

American Express^® Business Gold Card

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See rates and fees | Terms Apply

Current Offer

Earn 100,000 Membership Rewards points after spending $15,000 on eligible purchases in the first 3 months

Annual Fee

$375

Rewards Rate

4X Membership Rewards Points on purchases in the two eligible categories with the most spend each month from 6 eligible categories (up to $150,000 in combined purchases each calendar year, after that 1X), 3X Membership Rewards points on flights and prepaid hotels booked at amextravel.com, and 1 point per $1 spent on other eligible purchases

Benefits and Drawbacks

Benefits

• Generous welcome offer
• Up to $240 in annual flexible business credit
• Up to $155 in Walmart+ credits
• Flexible rewards structure that adjusts to your top eligible categories
• No preset spending limit¹
• Elevated travel rewards and extensive travel protections

Drawbacks

• 375 annual fee
• Bonus categories may not suit all businesses
• The 4X rewards rate is capped at $150,000

Card Details

• Welcome Offer: Earn 100,000 Membership Rewards® points after you spend $15,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*
• 0% Intro APR ¤ for 6 months from the date of account opening on purchases eligible for Pay Over Time, then a 18.74% to 27.74% variable APR.*
• Earn 4X Membership Rewards® points on the top two eligible categories where your business spends the most each month from 6 eligible categories. While your top 2 categories may change, you will earn 4X points on the first $150,000 in combined purchases from these categories each calendar year (then 1X thereafter). Only the top 2 categories each billing cycle will count towards the $150,000 cap.*
• Earn 3X Membership Rewards® points on flights and prepaid hotels booked on amextravel.com using your Business Gold Card.*
• Earn up to $20 in statement credits monthly after you use the Business Gold Card for eligible U.S. purchases at FedEx, Grubhub, and Office Supply Stores. This can be an annual savings of up to $240. Enrollment required.
• Get up to a $12.95** statement credit back each month after you pay for a monthly Walmart+ membership (subject to auto-renewal) with your Business Gold Card. **Up to $12.95 plus applicable taxes on one membership fee.*
• The Business Gold Card now comes in three metal designs: Gold, Rose Gold and Limited Edition White Gold. White Gold design is only available while supplies last. Make your selection when you apply on Americanexpress.com.
• *Terms Apply

Premium Business Rewards

The Business Platinum Card^® from American Express

4.8

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

The Business Platinum Card^® from American Express

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See rates and fees | Terms Apply

Current Offer

Earn 150,000 Membership Rewards points after spending $20,000 on eligible purchases in the first 3 months

Annual Fee

$695

Rewards Rate

5X points on flights and prepaid hotels on Amextravel.com; 1.5X points on eligible purchases at U.S. suppliers of construction materials and hardware, U.S. retailers of electronic goods, U.S. providers of shipping, software and cloud systems, and eligible purchases of $5,000 or more (up to $2 million per year, then 1X), and 1X points per $1 spent on all other eligible purchases (purchases eligible for multiple additional point bonuses will only receive the highest eligible bonus)

Benefits and Drawbacks

Benefits

• Option to pay a portion of eligible charges over time, rather than in full monthly
• Seamlessly connects to QuickBooks® for easy reporting
• Includes cell phone insurance up to $800 per claim for damage or theft²

Drawbacks

• High annual fee that isn’t worth it if you don’t travel frequently
• High spend requirement to earn the welcome bonus

Card Details

• Welcome Offer: Earn 150,000 Membership Rewards® points after you spend $20,000 in eligible purchases on the Card within the first 3 months of Card Membership.
• 5X Membership Rewards® points on flights and prepaid hotels on AmexTravel.com, and 1X points for each dollar you spend on eligible purchases.
• Earn 1.5X points (that’s an extra half point per dollar) on each eligible purchase at US construction material, hardware suppliers, electronic goods retailers, and software & cloud system providers, and shipping providers, as well as on purchases of $5,000 or more, on up to $2 million per Card Account per calendar year. Purchases eligible for multiple additional point bonuses will only receive the highest eligible bonus.
• Unlock over $1,000 in statement credits on select purchases, including tech, recruiting and wireless in the first year of membership with the Business Platinum Card®. Enrollment required. See how you can unlock over $1,000 annually in credits on select purchases with the Business Platinum Card®, here.
• $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to the Card.
• $199 CLEAR® Plus Credit: Use your card and get up to $199 in statement credits per calendar year on your CLEAR® Plus Membership (subject to auto-renewal) when you use the Business Platinum Card®.
• The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market as of 03/2023.
• $695 Annual Fee.
• Terms Apply.

Pick Your Top Business Cashback Category

Bank of America^® Business Advantage Customized Cash Rewards Mastercard^® credit card

4.3

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Bank of America^® Business Advantage Customized Cash Rewards Mastercard^® credit card

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Current Offer

Earn a $300 online statement credit after you make at least $3,000 in net purchases in the first 90 days of your account opening

Annual Fee

$0

Rewards Rate

3% cash back in your category of choice: gas stations & EV charging stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services and 2% cash back on dining (for the first $50,000 in combined choice category/dining purchases each calendar year, then 1%); and unlimited 1% cash back on all other purchases

Benefits and Drawbacks

Benefits

• $0 annual fee
• Introductory APR for purchases
• Can change your category of choice once per month
• Competitive welcome bonus

Drawbacks

• No introductory APR for balance transfers
• Complicated rewards structure

Card Details

• Earn a $300 online statement credit after you make at least $3,000 in net purchases in the first 90 days of your account opening
• 3% cash back in your category of choice: gas stations & EV charging stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services and 2% cash back on dining (for the first $50,000 in combined choice category/dining purchases each calendar year, then 1%); and unlimited 1% cash back on all other purchases

Get up to 3X points

Bank of America^® Business Advantage Travel Rewards World Mastercard^® credit card

4.4

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Bank of America^® Business Advantage Travel Rewards World Mastercard^® credit card

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Current Offer

Earn 30,000 online bonus points after you make at least $3,000 in purchases in the first 90 days of your account opening

Annual Fee

$0

Rewards Rate

3 points per $1 on travel booked through the Bank of America® Travel Center and 1.5 points per $1 on all other purchases

Benefits and Drawbacks

Benefits

• $0 annual fee
• Unlimited 1.5X points earned on purchases

Drawbacks

• No travel partners to maximize rewards
• Best rewards come from the Preferred Rewards program, but it’s hard to qualify for

Card Details

• Earn 30,000 online bonus points after you make at least $3,000 in purchases in the first 90 days of your account opening
• 3 points per $1 on travel booked through the Bank of America® Travel Center and 1.5 points per $1 on all other purchases

Double miles on American Airlines purchases

Citi^® / AAdvantage Business™ World Elite Mastercard^®

4.3

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Citi^® / AAdvantage Business™ World Elite Mastercard^®

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Current Offer

Earn 75,000 American Airlines AAdvantage® bonus miles after spending $5,000 in purchases within the first 5 months of account opening

Annual Fee

$99 (waived first year)

Rewards Rate

Earn 2X miles per dollar on all eligible American Airlines purchases and on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations; plus 1X miles on other purchases

Benefits and Drawbacks

Benefits

• Earn 75,000 American Airlines AAdvantage® bonus miles after spending $5,000 in purchases within the first 5 months of account opening
• 2X miles for eligible American Airlines purchases and on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations
• First checked bag is free on domestic American Airlines itineraries
• Preferred boarding
• 25% savings on American Airlines inflight Wi-Fi when you use your card

Drawbacks

• Annual fee

Card Details

• Earn 75,000 American Airlines AAdvantage® bonus miles after spending $5,000 in purchases within the first 5 months of account opening
• Earn 2X miles per dollar on all eligible American Airlines purchases and on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations; plus 1X miles on other purchases

Unlimited 2% Cash Back

Capital One Spark Cash Plus

4.4

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Capital One Spark Cash Plus

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Rates and fees

Current Offer

Earn a one-time cash bonus of $2,000 once you spend $30,000 in the first 3 months

Annual Fee

$150

Rewards Rate

Unlimited 2% cash back on every purchase, every day; plus unlimited 5% cash back on hotels and rental cars booked through Capital One Travel

Benefits and Drawbacks

Benefits

• No cap on rewards
• Bonus rewards on travel booked through Capital One

Drawbacks

• High minimum spend requirement for the welcome bonus
• You must pay your balance in full monthly

Card Details

• Earn a one-time cash bonus of $2,000 once you spend $30,000 in the first 3 months
• Earn an additional $2,000 cash bonus for every $500K spent during the first year. You can earn this bonus multiple times over the course of year 1!
• Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions
• Enjoy purchasing power that adapts to your business. The Spark Cash Plus card has no preset spending limit, so it can adapt to your needs based on your spending behavior, payment history, credit profile and other factors
• Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
• Empower your teams to make business purchases while you earn rewards from their transactions with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
• $150 annual fee - Spend $150,000 annually and Capital One will refund this fee every year
• Spark Cash Plus has no APR because your balance is due in full every month
• For businesses that need large spending capacity and want to maximize cash back

Other recommended small business credit cards

• Capital One Spark Miles for Business
• Capital One Venture X Business
  
• IHG One Rewards Premier Business Credit Card
  
• World of Hyatt Business Credit Card
  
• United℠ Business Card
  

How to pick the right card for your business

No two businesses are alike and different company owners will have their own unique needs when it comes to the perfect small business credit card. To find the best business card for you, consider:

• How much you plan to spend on your card: Some cards have maximum spending limits within bonus rewards categories; others offer extra perks for big spenders. Consider your average budget and business finances, your ideal credit limit, and how much your business spends each month.
• What type of spending you do the most: Look at your typical business spending in a given calendar year. Business credit cards often offer bonus rewards for different spending categories, and you'll want a card that gives you extra points for the things your company spends the most on. If you have a wide variety of expenses that don't always align with select categories, you might consider a flat-rate rewards card.
• What kinds of rewards you're interested in: Some cards offer the chance to redeem for cash back or gift cards, while others allow you to trade points for travel purchases, such as flights, hotel stays, or rental cars. Some even allow you to use your rewards points with partner rewards programs as a redemption option. Consider how much redemption flexibility you need and which rewards excite you, whether that's Marriott Bonvoy points, Delta SkyMiles, Membership Rewards points, or another rewards currency, such as Chase Ultimate Rewards you can earn with Chase Ink Business cards.
• Your card benefit preferences: Many business cards provide additional benefits to cardholders. If you have specific preferences, such as receiving flight upgrades, free night awards, travel credit, elite status, Clear Plus fee credit, extended warranty protection, rideshare credit, or a Quickbooks discount, make sure you read over the benefits on each card you compare. Note that many business cards also provide ways to interface with expense management tools.
• How many employee cards you need: If you have lots of staff who need to charge purchases to your account, free employee cards could be an important perk and management tool. Employee card cancellation is typically easy to handle through your online card account.
• Can you afford — and justify — an annual fee: There are free business cards and cards that charge you to become a cardholder, though some waive the annual fee for the first year. Paying an annual fee is worth it only if you'll earn enough rewards to justify the fee or if the cardholder perks make the fee worth paying. Many of the best credit cards have an annual fee (sometimes a high annual fee), but you have to consider whether the card's benefits will help you more than offset the cost. A low or no annual fee might make the most sense if you don't want to stress about the cost.
• Business credit reporting vs. personal credit reporting: Certain card issuers report business card activity to your personal credit report, while others only report business credit card activity to your personal credit report if your account is delinquent. The rules typically vary by issuer, so do your due diligence before you apply for a card if this is an important consideration for you. Many business credit cards also require a personal credit inquiry to qualify. In some cases, you might need a good or excellent credit score to be eligible.
• Credit card issuer: Card perks and benefits, as well as general card acceptance, can vary by credit card issuer. The American Express business card lineup offers loads of useful perks, which could include earning rewards on U.S. purchases and redeeming rewards with amextravel.com. But American Express cards use the Amex payment network, which generally isn't as widely accepted as Visa and Mastercard. Remember that different terms apply depending on the card issuer as well, so it's always a good idea to read over your guide to benefits as a new cardholder.

Business credit cards vs. personal credit cards

Business credit cards are meant for small business owners to use for everyday business purchases. Personal credit cards are meant for individuals to use on everyday expenses, such as groceries or gas.

That doesn't mean you need a separate business credit card for business expenses. You can still use personal cards for business expesnes. But as a small business owner, the benefits of having a business credit card over a personal credit card could include:

• A higher credit limit and expanded buying power
• Bonus categories that align with common business expenses
• Business-related perks and benefits
• Separate credit reporting
• Employee credit cards
• Convenient tracking of business expenses

One of the most important reasons to have a business credit card for your business is because it can help separate your business and personal expenses. This can make it easier to file your taxes and help provide necessary bookkeeping if you’re audited.

What you need to get approved for a small business credit card

Business credit cards aren’t just for large corporations with loads of employees. You could qualify with many different types of business income, even as a freelancer or someone doing a part-time side hustle. Sole proprietors, LLCs, non-profit organizations, startups, and more can all qualify for business credit cards.

Here are some of the application requirements for getting approved for a small business credit card:

• Social Security number (SSN) or individual tax ID number (ITIN)
• Legal business structure (sole proprietorship, LLC, partnership, etc.)
• Business’ legal name
• Employer identification number (EIN) if you have one
• Number of employees
• Established business date
• Annual business revenue

In some cases, you can use your SSN or ITIN in place of an EIN. And keep in mind that business credit cards also have credit score requirements. This means that even though some business cards don’t report to your personal credit, you often need a good or excellent personal credit score to qualify.

Pros and cons of business credit cards

Pros

• Separating personal and business expenses
• Potentially having a higher credit limit
• Issuing employee credit cards to help with your business needs
• Tracking your business expenses (you can often set preset spending limits for employee cards)
• Earning rewards on business purchases and/or bonus offers
• Building your business credit history
• Helping improve cash flow for your business
• Taking advantage of credit card benefits, which could include purchase protection or cell phone protection with different service providers
• Transferring rewards to loyalty programs, such as Hilton or Hyatt, with certain business credit cards
• Some cards offer travel protections

Cons

• Paying an annual fee unless you have a no-annual-fee card
• Losing out on some of the protections offered to consumer cardholders under the Credit CARD Act of 2009
• Not having the best intro APR offers on purchases or balance transfers (the offers typically last fewer billing cycles compared to consumer cards)
• Potentially having to pay high interest rates (variable APR) with a credit card or certain fees with a charge card
• Having hard credit checks on your consumer credit history could affect your personal finance goals

FAQs

Advice from our experts

Making sure your small business’ finances are in order is no small feat. That’s why we asked a panel of experts to weigh in on the business card application process and potential tax benefits. 

Do you need an LLC or incorporated business before going through the credit card application process?

Joseph R. Stasio Jr.

Associate Professor, Department of Marketing at the Girard School of Business | Merrimack College

You don’t necessarily need an LLC or incorporated business to apply for a business credit card, but having one can offer advantages. Many credit card issuers offer business credit cards to sole proprietors, partnerships, and incorporated businesses. Some advantages of having an incorporated business include:

• Credit building: A formal business structure can help you build business credit separate from your personal credit.
• Liability protection: An LLC or corporation provides personal liability protection, which is important for protecting your personal assets.

Susan Pace Hamill

Professor of Law and Honors Professor | University of Alabama

No, your business does not have to be incorporated or formed as an LLC to apply for a business credit card. Small businesses also operate as sole proprietorships (a single person engaged in a small business), general partnerships (a group of co-proprietors engaged in business together) and limited liability partnerships (LLPs), which are general partnerships that have registered for limited liability protection for the partners. Those businesses can also apply for and use a business credit card.

Isabel C. Botero, Ph.D.

George E. and Mary Lee Fischer Chair in Family Entrepreneurship and Department of Management & Entrepreneurship, College of Business | University of Louisville

If you would like to have a business credit card, many credit card companies will require an Employee Identification Number (EIN). This means that you will need to have a legal entity created to get a credit card. Sole proprietors can have the option of opening a personal credit card that is dedicated to the business. For this, a business owner will need their personal social security number. The benefit of separating the business and the personal expenses comes from the liability and the protection of assets in case of legal problems.

Christopher M. Scalzo

Ph.D., Professor, Hospitality and Business Division | SUNY Morrisville

The quick answer is that you do not need an LLC or incorporated business before the credit card application. However, if the credit card is for the actual expenses and costs for the business, then the owner should have the name already filed with the state so that card is associated with the business. If the card is not in the business name, then the expenses may get mixed with personal expenses and purchases, which may create issues with accounting for the business or the mixing of personal and business transactions, which should always be separate.

Gregory Germain

Professor of Law | Syracuse University College of Law

Businesses can be conducted under trade names without being part of a separate legal entity. Many people operate their businesses as sole proprietorships or partnerships rather than creating a separate legal entity like a corporation or LLC. A credit card issuer should require an applicant to disclose who is the owner of the business and who is going to be liable for the charges, so they might require a guaranty from an individual before issuing a credit card to an entity.

In general, most business credit card issuers would be happy to issue cards to a sole proprietorship. I expect that many issuers will require that the individual owners of a small LLC or corporation personally guarantee payment.

Are there any tax-related benefits to putting your expenses on a business credit card?

Gregory Germain

Professor of Law | Syracuse University College of Law

I don't think there are any obvious tax benefits to using one method of payment like a credit card over any other method of payment. But it is very important for liability purposes that limited liability entities like corporations and LLCs keep their business activities separate from the activities of the individual owners. It could be problematic for a corporation to use a personal credit card of the shareholder to pay for corporate purchases, and then reimburse those purchases, because it might appear to be commingling of corporate and personal assets.

It’s advisable for limited liability entities to have their own accounts and separate bookkeeping, and the same would be true for business credit cards. A business can deduct business interest expenses, while most individuals cannot deduct personal credit card interest expenses.I could see a lot of recordkeeping and proof problems with commingling personal and business expenses.

Dr. Bahaudin G. Mujtaba, MS-LAW, MBA, DBA, SHRM-CP, SHRM-SCP

Professor of Human Resources / International Management, Huizenga College of Business and Entrepreneurship | Nova Southeastern University

Using a business credit card for business expenses can provide several tax-related benefits and help simplify an entrepreneur’s financial management or bookkeeping. Business credit cards provide detailed monthly statements, which makes it easier to track and categorize regular and ad hoc expenses. This can simplify bookkeeping and tax preparation. Many business credit card issuers provide year-end summaries that break down expenses by category, which can be invaluable for tax reporting and identifying deductible expenses.

While it is best to pay any balance before additional fees are added, sometimes it is not possible when the business is lacking cash. So, if a business is carrying a balance on the credit card, the interest paid on that balance is usually tax-deductible as a business expense. Any annual fees or other such charges associated with maintaining a business credit card can also be considered deductible business expenses. Purchases such as supplies, meals, utilities that are made for business purposes, and travel expenses to attend conferences or even visit customers and suppliers are generally tax-deductible. Of course, proper record-keeping is essential to make any tax deductions. Entrepreneurs should keep all receipts and records of transactions for five-six years to substantiate every business expense.

Ajay Patel

Professor and Thomas S. Goho Chair in Finance, School of Business | Wake Forest University

Any interest paid on business related purchases is an expense that may be deducted from pre-tax earnings by the LLC.This means interest paid on business related purchases reduces taxable income, thereby reducing taxes owed to the U.S. government and to the State. As such, interest paid on a credit card has the same tax benefits (the tax deduction) as interest paid on a small business loan. The downside to interest paid on a business credit card is the likelihood that the interest rate on the credit card is higher than what it might be on a small business loan.

Michael Opara, DBA CPA

Associate Professor, Department of Accounting & Finance | Texas A&M University, Commerce

It is possible to deduct the credit card fees. Because under our current tax rules, business expenses that are “ordinary” and “necessary” are eligible for deduction against business income. So, business credit card fees can be tax deductible. This also means you can potentially deduct business credit card interest as well. However, if you want to deduct business credit card fees on your taxes, make sure you've used the card for business spending only.

Furthermore, there are a few non-tax-related benefits of putting your business expenses on your business credit card. First, it makes filing your tax returns easy as you won’t be trying to figure out which expense is personal and which is business come tax season. This separation saves you a lot of accounting headaches and stress when filing your taxes. Second, establish and grow your business credit and profile. An excellent business credit score can give your business access to better interest rates, higher lines of credit, and low-interest loans for an LLC.

When should you open a business credit card rather than applying for a small business loan?

Susan Pace Hamill

Professor of Law and Honors Professor | University of Alabama

Depends on the circumstances. Credit cards are loans up to the authorized amount and tend to charge high interest if the balance is not paid at the end of the month. A small business loan hopefully will bear lower interest than your standard credit card, but that depends on the terms of the loan. Generally, loans should be for longer term expenses or big ticket purchases (e.g., the premises for the business, equipment for a construction company) and credit cards should be for day-to-day expenses (e.g., electric bill for the premises, raw materials used by the construction company.

Tenpao Lee, Ph.D.

Professor Emeritus | Niagara University

You should open a business credit card as soon as possible. The business credit card company will not charge you if you pay off your balances during its grace periods. Therefore, your business may be more flexible in dealing with cash flow issues with a business credit card. However, the business credit card company usually charges higher interest rates than the banks. You need to optimize your financial operations between business credit cards and small business loans.

David S. (Steve) Heesacker MS, MA, MS

Business Faculty and Academic Advisor | Central Carolina Community College

As long as the card is used primarily for day-to-day operations and not to fund large purchases that will take a long time to pay off, I recommend obtaining a business credit card (or personal card used only for the business) at startup. A credit card that does not carry large balances from month-to-month helps build credit which is beneficial if obtaining a loan is required. Though they are often necessary, loans create a debt burden on the business/owner and it is usually advisable to use savings or funds from investors (if available) until a business is profitable.

Brandon Di Paolo Harrison, DBA

Assistant Professor of Accounting | Austin Peay State University, College of Business

Business loans and business credit cards serve different purposes. Business credit cards allow for short-term financing needs such as immediate expenses, while providing some repayment flexibility. Business credit cards also assist in establishing your business’ credit score. Deciding which option is best for your business will depend on your own situation. However, large long-term investments would be best done with a small business loan to avoid high-interest debt.

Methodology

To select the best business credit cards, we looked for cards that offer valuable perks for businesses of all sizes. We looked at the value of these rewards, as well as the welcome offer, compared to the annual fee. We did not include all cards available.

Up to 5% Cash Back

Ink Business Cash^® Credit Card

4.8

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Ink Business Cash^® Credit Card

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Current Offer

Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening

Annual Fee

$0

Rewards Rate

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 year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year; and 1% cash back on all other purchases

Benefits and Drawbacks

Benefits

• Solid rewards on office supply, telecom spending, gas, and dining
• Generous welcome offer
• Intro APR on purchases
• $0 annual fee
• Valuable purchase and travel protections

Drawbacks

• Bonus rewards capped after $25,000 annual spend in each category
• No bonus rewards for travel or advertising purchases
• Foreign transaction fee of 3% of each transaction in U.S. dollars

Card Details

• Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six 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 year
• Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
• With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
• No Annual Fee
• Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
• 0% introductory APR for 12 months on purchases
• Member FDIC