is an LLC sufficient to get a business card?

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
19 posts
GoCreditGo!
Centurion Member
Centurion Member
 
Posts: 230
Joined: Tue Nov 05, 2013 1:48 pm
Location: Seattle WA

is an LLC sufficient to get a business card?

Postby GoCreditGo! » Tue Nov 19, 2013 1:29 pm

Just wondering if an LLC is sufficient to get a business issued card. Anyone have experience with that?


cashnocredit
Platinum Member
Platinum Member
 
Posts: 51
Joined: Sun Feb 22, 2009 2:43 pm
Location: San Diego

Postby cashnocredit » Tue Nov 19, 2013 3:01 pm

No. An LLC just gives you a tax id to enter. LLC's are a dime a dozen and have no implicit value to creditors. LLC's can establish business credit over time, for instance with D&B. Amex will approve or not based on your personal credit file.

Ikarus
Centurion Member
Centurion Member
 
Posts: 146
Joined: Thu Feb 07, 2013 4:53 am
Location: USA

Postby Ikarus » Tue Nov 19, 2013 4:23 pm

That's good to know. I had an S-corp some years ago, but never got a true business credit card, only a business debit card that drew directly from my account.

The S-corp basically was a tax shield and saved me tons of money in taxes. I'm about to start an LLC next year and am hoping for similar tax breaks. Will that be true?
Merrick Bank (Hooters) 4100
Cap One Quicksilver 2800
Discover it 2500
Citi Forward 5400
Chase Freedom 1000
AMEX Blue Cash Everyday 5500
Citi Dividend 5600
Cap One Visa Platinum 750 (CLOSED)

Midori
Centurion Member
Centurion Member
 
Posts: 204
Joined: Tue Oct 30, 2012 10:25 am
Location: TX

Postby Midori » Tue Nov 19, 2013 4:40 pm

With the bank--

LLC owns Real Estate X free and clear. LLC takes out bank loan against value of Real Estate X. The bank loan is issued to LLC. I have to sign for LLC. DH has to sign for me. DH has no connection to the LLC whatsoever. DH is cranky, and I'm cranky as well.

With a credit card--

LLC has been in existence for 4 years. (Statistically speaking, most go under before that.) LLC possesses $y in real estate assets and brings in $k in annual revenue. I tried getting a Lowe's store credit card in LLC's name, and with me as the guarantor. The LLC was denied due to my lack of revolving credit.

Lessons brought away from it---

(a) I try to keep "me" and "the biz" separate, but the credit card companies and the banks make it impossible.
(b) DH tries to keep very far away from the biz, but it's equally impossible.
(c) I've never tried getting a formal business card, since my spending patterns don't match their bonus categories, and I got soured on the Lowe's decline. But I have delegated a personal credit card for biz spending, and there haven't been any problems with that, unless you happen to go for a card that specifically prohibits it.

@Ikarus, with my LLC, I fill out a Schedule E on my federal income taxes. My accountant takes care of the tax stuff, so I don't know the details personally. But since I bring in less than a particular threshold in Texas, I don't have to pay state franchise tax; I don't sell anything that is sales taxable; and there is no state income tax. WA or IL is going to have its own batch of tax issues. If it was me, I'd ask for my attorney's view and then I'd have a separate conversation with my accountant.

whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Tue Nov 19, 2013 6:22 pm

LLCs can get credit cards

I'm not sure about Amex but from what I know with how Chase does business credit cards, while you can have one for the business's tax EIN, and under the business "name" it's the owner of the business that is liable. so whether it's members/managers of the LLC or the owner of the s/c-corp, it's taken into account the cardholder's personal social when the application is being placed

nowadays it's rare to have a business credit card that takes the business solely and not take the personal into consideration as well.

whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Tue Nov 19, 2013 6:23 pm

heck, general partnerships (including ones written on paper napkins outlining the percentage each owns and signed) can have credit cards ;)

woogs
Platinum Member
Platinum Member
 
Posts: 60
Joined: Wed Aug 29, 2012 11:19 am
Location: Pittsburgh, PA

Postby woogs » Wed Nov 20, 2013 7:51 am

Do you happen to mean corporate card vs business card? Pretty much anyone can get a business credit card - LLC or no LLC. A sole proprietor can even get a "business credit card". My understanding (and personal experience at least) is that just about every business credit is still tied to a person and you are personally liable for it.

A corporate card (for example Corporate Amex program which is different than Business Amex) is tied to the business but even still, a person is typically still responsible for it and the business is liable after the employee if they do not pay.
American Express: MB Platinum Card, Business Platinum, Business Gold, SPG, Hilton Surpass
Chase: Ink Plus, Ink Bold, Sapphire Preferred, United Mileage Plus, Marriott Premier
Citi: Executive AA World Elite MasterCard, AA Visa Signature, AA Business MasterCard
Barclays: US Airways World Elite, Arrival Card

Sevenfeet
Centurion Member
Centurion Member
 
Posts: 532
Joined: Thu Jan 17, 2013 7:20 pm
Location: United States

Postby Sevenfeet » Wed Nov 20, 2013 8:15 am

LLCs can certainly get credit cards. My wife applied for one yesterday when she opened up a checking account at the local BofA. I'm not happy that she applied for it since I don't think that it's going to be as much of a benefit. There's an office supply store benefit which is nice but available on other products like the Chase Ink. The real attraction is that if you spend enough on the card, you avoid the fees of the business checking account (not small). The problem is that I can't see her pushing that much money through her card on a consistent basis ($250 a month) or keep $3000 or more in the checking account on average (we have bills to pay).
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)

whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Wed Nov 20, 2013 11:27 am

business line of credits takes more of a look at your business profits and are harder to get, it's always a recommendation to get it when you don't need it because it's when you need it that you're unlikely to get it. it's also better to do so so that you have a good amount of cash flow in your accounts so your business has the flexibility it needs when times call for it

the credit card for the business is more between your wife's personal social and the business tax id..250 isn't bad, with chase you had to spend minimum 1k per cycle but they did away with that, and instead of the 15k minimum it's 1.5k with restrictions on international wires and heavy cash deposits (people often confuse this with money they deposit in form of checks or electronic deposits)

i

GoCreditGo!
Centurion Member
Centurion Member
 
Posts: 230
Joined: Tue Nov 05, 2013 1:48 pm
Location: Seattle WA

Postby GoCreditGo! » Wed Nov 20, 2013 12:46 pm

I did not think about business vs. corporate. I guess I would mean corporate. Anyone could get a card they only put business purchases on. That would quality for a business card, but the AMEX corporate cards would be what my question was about.



Return to “American Express”

Who is online

Users browsing this forum: No registered users and 2 guests