Business credit card

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills

Business credit card

Postby bagelhead » Thu Dec 20, 2012 1:38 am

Do you recommend obtaining a separate Business Credit Card for a moderate amount of business-related expenses? Or should one just use his Personal Credit Card and keep meticulous records?

How do you handle dual-use expenses such as Gas, Cell phone, Internet, etc.?

Thanks!
bagelhead
 
Posts: 85
Joined: Thu Mar 17, 2011 12:20 am

Re: Business credit card

Postby LifeIsGood » Thu Dec 20, 2012 8:31 am

I highly recommend AVOIDING a business credit card. A consumer card offers you many protections and benefits that are absent on business cards. When I had my business, I had a credit card that I used exclusively for business related expenses. My philosophy was that if it was a legitimate business expense, it went on that card. Otherwise I used my personal card.
LifeIsGood
 
Posts: 366
Joined: Mon Feb 11, 2008 8:43 pm
Location: Atlanta, GA

Re: Business credit card

Postby arkerr123 » Thu Dec 20, 2012 8:50 am

I am in a similar situation. I just bought a triplex and I am pondering if I will setup a new personal account or a new business account.
arkerr123
 
Posts: 92
Joined: Fri Mar 09, 2012 5:17 pm

Re: Business credit card

Postby ResNullius » Thu Dec 20, 2012 8:57 am

I always used my personal card. When it comes to getting reimbursed at work, I always had to submit receipts anyway. By using my personal credit card, I got all the rewards and points, which were huge since I put many tens of thousands of dollars on my credit card in a given year for airfare, hotels, dinning, and such. Heck, sometimes I used my credit card to pay for numerous associates who were traveling with me.
ResNullius
 
Posts: 2090
Joined: Wed Oct 24, 2007 3:22 pm

Re: Business credit card

Postby fareastwarriors » Thu Dec 20, 2012 11:44 am

arkerr123 wrote:I am in a similar situation. I just bought a triplex and I am pondering if I will setup a new personal account or a new business account.



Just use another personal card or set up a new personal card. Keep your triplex expenses separate from your personl spending. No need for any business card.
fareastwarriors
 
Posts: 625
Joined: Tue Feb 14, 2012 12:31 pm

Re: Business credit card

Postby dailybagel » Thu Dec 20, 2012 11:45 am

I am assuming that even with a business credit card, you would be personally liable for the credit account, correct?
dailybagel
 
Posts: 446
Joined: Tue Feb 15, 2011 8:35 pm

Re: Business credit card

Postby PaddyMac » Thu Dec 20, 2012 11:51 am

I've used both personal and business credit cards for business expenses. For business now, I use the Amazon Chase Business. Look at the terms and see which one works best for you. The most important thing is to have a separate card for business; it really simplifies things.
User avatar
PaddyMac
 
Posts: 1102
Joined: Fri Jul 09, 2010 10:29 pm

Re: Business credit card

Postby englishgirl » Thu Dec 20, 2012 12:01 pm

I spent the last year (first year of my "business" but I wasn't incorporated yet) using my personal card. I did NOT keep good records. I need to be better at this, and I intend to start using QuickBooks online in January to track my business finances better. But I'm going to have a giant headache getting my taxes done and tracking down receipts and such. I therefore decided I need a separate card starting in January, which is when my business is incorporating.

I've decided to upgrade my personal Costco membership to an executive business membership, and to go with the Costco Amex business card as I do this. Then I'll put as many business expenses as I can on that card. That's my first step. Seems like I can easily keep using my personal checking account with the Costco Amex. Then I'll open a business checking account once I start receiving funds direct from actual customers (instead of just 1099 income). And then maybe I'll consider a non-Amex business card. But, first things first...
Sarah
User avatar
englishgirl
 
Posts: 2135
Joined: Thu Mar 01, 2007 5:34 pm
Location: FL

Re: Business credit card

Postby englishgirl » Fri Dec 21, 2012 12:11 pm

Just revisiting this topic.

I was just in my personal Amex account, and noticed that you can tag your expenditures. So I created a tag called "business" and went back and tagged the last 6 months (at least, what I remember off the top of my head). Then by selecting to show spending for the year categorized by each tag, the website adds everything up for you.

Now, this feature has probably been there for 10 years and I just noticed it (and I'm sure other banks have something similar). But it looks pretty handy if you don't want to have a separate card. However, I have bought some business items at Costco, and those are all mixed up with personal items. It seems like that'd be hard to tag. For that reason, I think paying on two separate cards, one for business and one for personal, makes things a lot neater.
Sarah
User avatar
englishgirl
 
Posts: 2135
Joined: Thu Mar 01, 2007 5:34 pm
Location: FL


Return to Personal Finance (Not Investing)

Who is online

Users browsing this forum: BC_Doc, Goblue97 and 30 guests