Guidance on naming your business for credit card applications

Research

Hannah Streck Senior SEO manager | The Points Guy

By Sky Industry News

Dec 19, 2024

For many small-business owners, obtaining a business credit card can be an effective strategy for managing expenses. Beyond offering a line of credit, these cards provide benefits such as building business credit history, earning rewards, and access to expense management tools.

The application process for a business credit card differs from that of a personal one. Applicants must provide not only personal information but also details about their business, including its duration, annual revenue, and employee count. A crucial part of the application is specifying the business name, which could be either the owner's personal name or the legal business name.

Choosing the appropriate name depends on the business structure. Banks allow applications under various structures like partnerships or sole proprietorships. Larger businesses often apply with their registered names. However, sole proprietors might find this decision more complex.

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"If you're not 100% sure of the business structure you should select, speak with a lawyer or tax professional," advises experts for those unsure about their classification. For sole proprietors involved in gigs such as driving for DoorDash or Uber, pet sitting via Rover, freelance writing, or babysitting, applying under one's own name is straightforward since no additional paperwork is required to form a sole proprietorship.

Using one's personal name can simplify matters when banks request supporting documents like proof of address during the approval process.

For businesses operating under different names than their legal ones, filing a DBA (doing business as) form is essential before opening accounts in that name. Legal advice is recommended due to varying state regulations on DBA filings.

"It’s important never to fabricate a business name without proper documentation," warns professionals in the field. Doing so risks fraud charges if supporting documents are requested by issuers.

Business credit cards offer welcome bonuses and spending perks but often undergo stricter scrutiny compared to personal cards. Applicants should have relevant documents ready and consider using their own names if applying as sole proprietors.