What name should I put on my business credit card application?
Quick insights
- When you apply for a business credit card, you may include either your business name or personal name on the application.
- Corporations, LLCs or partnerships should apply with their business name on the application.
- Sole proprietors should consult with a lawyer or tax professional to choose which option is best.
There are many reasons why a business may choose to apply for a business credit card. In addition to helping separate work and personal expenses, business credit cards can help you earn rewards on business purchases, access a stable line of credit, build a business credit score and more.
But which name do you put on your application—your legal name or your company name? The option typically depends on your business structure, but it may be helpful to consult a professional to make the best choice.
Read on to find out how business credit cards differ from personal ones and which name is best to put on your application.
Differences between personal and business credit cards
Using a business credit card may be beneficial for keeping track of business spending. Curious how business credit card differ from personal credit cards? Business credit cards:
- Usually have higher credit limits
- Offer a business-specific line of credit
- Typically have business-specific rewards categories
- May have an intro APR for longer periods of time
- Don't typically impact your personal credit score (if used responsibly)
- Have fewer consumer protections than personal credit cards
Business credit cards also offer additional benefits, which may include sign-up bonus offers, spending categories that allow you to earn points at an accelerated rate, travel benefits and more.
It can be useful to have a separate credit card for business purposes so you don't exceed your credit limit on your personal credit card.
Should I put my company name or legal name on my business credit card application?
Many people can get a business credit card, even if they don't have a formally incorporated business. Sole proprietors (unincorporated businesses run by individuals) and those who are self-employed are often eligible.
For most corporations, LLCs and partnerships, it makes the most sense to apply with their formal company names. But the decision may be more complex for individuals.
Business credit card applications ask for a variety of business details, including the legal structure of your business. Selecting "sole proprietor" or "self-employed" can be an easier option if applicable to you because you won't need to file any paperwork with your state or federal government. Some examples of sole proprietors include freelance graphic designers, dog walkers, personal trainers and babysitters.
If you choose this option, you'll apply for the credit card with your own name. Note that you may need to provide proof of a physical business address for this method; rent or utility bills that match the information you provide will likely work.
How do I get a credit card in my business name?
If you apply for a business credit card with your business name, it's important to follow the necessary legal steps to establish your business. This includes filing a doing business as (DBA) form if your business operates under a name other than your legal name.
A DBA may also be referred to as a "trade name," "assumed name" or "fictitious business name" depending on your state. Regulations regarding starting a business vary between states, so it may be best to consult a legal professional.
In short, applying for a business credit card with your legal name is typically less complex—but the right choice for you depends on your location and business structure.
Do I need to get a new credit card if my business name changes?
If you change your legal business name, you'll likely need to update your business credit card account so you can get a new physical card. The process differs between credit card issuers, so it's best to call the phone number on the back of your card and talk to a representative to ensure you follow the correct steps for your specific credit card.
This applies if you only change the business name (from "Johnson Hardware" to "Johnson Family Hardware," for example). If your business entity changes completely, you will need to close your account and apply for a new business credit card. This would likely be the case if you form a corporation or LLC but initially applied for the credit card as a sole proprietor.
In summary
Business credit cards can be helpful tools for separating business and personal expenses. If you plan to apply for one, it's important to be prepared and provide factual and up-to-date information in your application.
While it typically makes sense for incorporated businesses to apply with their business names and sole proprietors to apply with their legal names, it may be best to consult a legal professional about your specific situation if you aren't sure.
Take the next step by exploring our available business credit cards.
