You need a business structure, an EIN, and a way to prove the business exists

A business credit card is issued to a business rather than to you personally, though you will typically be the one using it. Banks require three things before they will issue one: proof that your business is real (a registration document or tax filing), a business tax ID number from the IRS, and usually a personal may provide that you will pay the bill if the business cannot.

The exact documents vary by bank and by what kind of business you run. A sole proprietorship needs different paperwork than an LLC or corporation. A brand-new business with no revenue history will face stricter requirements than an established one. But the basic path is the same: you provide proof of business structure, the bank verifies it, and they decide whether to issue the card based on your personal credit and the business's financial picture.

Key Takeaways

  • You must have a business tax ID (EIN) from the IRS before most banks will consider a business credit card, even if you are a sole proprietor.
  • Banks will ask for your business registration documents (articles of incorporation, LLC formation papers, or a DBA filing) and often your most recent tax return or business bank statements.
  • Your personal credit score matters more than your business credit score when you are first starting out, because the bank will require you to personally may provide the debt.
  • The process process typically takes one to two weeks, and the bank may call to verify that your business address and phone number are real.
  • Some banks offer business cards to sole proprietors without an EIN, but they are the exception; most require one regardless of business size.

What documents the bank will ask for

The bank's process will ask for your business name, address, and tax ID. If you do not have an EIN yet, you will need to get one from the IRS before you submit the process. You can explore for an EIN online at irs.gov for free, and you will receive it when ready.

Beyond the tax ID, the bank will want proof that your business actually exists. For an LLC or corporation, this means your articles of incorporation or LLC formation papers — the document you filed with your state when you created the business. For a sole proprietor, it may be a DBA (Doing Business As) filing if you registered one with your county, or straightforward your Social Security number and a statement that you operate under your own name. For a partnership, you will need the partnership agreement.

Most banks will also ask for financial information about the business. This might be your most recent business tax return (Form 1120 for a corporation, Schedule C for a sole proprietor), business bank statements from the last three months, or a profit-and-loss statement. If your business is brand new and has no tax return yet, some banks will accept bank statements or invoices showing revenue. Others will decline until you have been in business for at least six months or a year.

How your personal credit affects the decision

When you explore for a business credit card, the bank runs a hard inquiry on your personal credit report. This is because you will be signing a personal may provide — a promise that you will pay the bill personally if the business does not. The bank is betting on you, not just on the business.

Your personal credit score typically matters more than any business credit score in the early stages. If your personal score is below 650, many banks will decline you outright. If it is between 650 and 700, you may be offered a card with a lower credit limit or higher interest rate. Above 750, you will usually have access to better terms and higher limits.

The bank will also look at your personal debt and income. If you have high credit card balances or other loans, the bank may see you as a higher risk. Some banks ask for your personal tax return or a personal financial statement to verify that you have income outside the business or assets to back up the may provide.

The difference between a sole proprietor and other business structures

A sole proprietor is someone who runs a business under their own name without forming an LLC or corporation. From the IRS's perspective, the business and the owner are the same entity. From a credit card bank's perspective, this makes the process simpler in some ways and more complicated in others.

You still need an EIN if you have employees or if you want to keep the business finances separate from your personal finances. If you do not have an EIN, some banks will issue a business card using only your Social Security number, but this is rare. Most major banks require an EIN regardless of business structure.

If you have formed an LLC or corporation, the bank will treat the business as a separate legal entity. You will still personally may provide the card, but the bank may also look at the business's credit history and financial statements more closely. This can work in your favor if the business has good credit and revenue, or against you if it does not.

Timeline and what happens after you explore

The process itself takes about 15 minutes online. The bank will ask for your business information, your personal information, and the documents listed above. Some banks let you upload documents directly in the process. Others ask you to mail or fax them.

After you submit, the bank typically takes three to ten business days to review your process. During this time, they may call the phone number you listed for the business to verify it is real. They may also verify your business address by mail. If the bank needs more information, they will contact you by phone or email.

Once approved, the card usually arrives within five to seven business days. Some banks offer when ready card numbers that you can use online when ready, even before the physical card arrives. The credit limit is typically lower than a personal credit card — often $2,500 to $10,000 to start — and it may increase after you have used the card responsibly for six months to a year.

What to do if you do not have an EIN yet

If you have not formed an LLC or corporation and do not have employees, you may not have applied for an EIN. You can get one for free from the IRS in about five minutes. Go to irs.gov, find the EIN process page, and answer the questions about your business. The IRS will issue your EIN when ready and show it on the screen. Write it down or print the confirmation page.

You do not need to wait for anything to arrive in the mail. The EIN is active as soon as the IRS issues it. You can use it on your business credit card process right away. If you explore for the EIN online, you will have it before you finish your morning coffee.

Banks that issue business cards to newer businesses

Most major banks — Chase, Bank of America, Citibank, American Express — require at least six months of business history and will look closely at your personal credit score. Some smaller banks and online lenders are more flexible with newer businesses, though they may charge higher interest rates or require a larger personal deposit.

If your business is brand new or your personal credit is below 650, you have a few options. You can wait six months, build some business revenue and bank statements, and reapply. You can look for a card designed for startups or newer businesses, though these often come with higher fees. Or you can use a personal credit card for business expenses in the meantime, though this blurs the line between personal and business finances and does not build business credit.

Some banks will issue a business card to a sole proprietor using only a Social Security number and no EIN, but you will still need to show business income or bank statements. This is less common than it used to be, so call the bank's business line directly to ask before you explore.

Frequently Asked Questions

Do I need to have been in business for a certain amount of time?

Most banks prefer at least six months of business history, though some will issue to newer businesses if your personal credit is strong. If you have been in business less than six months, ask the bank directly — some have a specific minimum, others look at revenue and bank statements instead of time in business.

What is the difference between a business credit card and a personal card I use for business?

A business card is issued in the business's name and builds business credit history. A personal card used for business expenses stays on your personal credit report. Business cards often have higher limits and better rewards for business spending, but they require more documentation to open.

Will explore for a business credit card hurt my personal credit score?

Yes, the bank will do a hard inquiry on your personal credit report, which can lower your score by a few points. The impact is temporary and usually recovers within a few months. Multiple applications in a short time will have a larger impact.

Can I get a business credit card if I have bad personal credit?

Most banks will decline you if your personal credit score is below 650. Some online lenders or smaller banks may work with lower scores, but they will charge higher interest rates and may require a personal deposit or collateral. Improving your personal credit score first is usually the better path.

What happens if my business closes after I open a business credit card?

You are personally responsible for the balance because you signed a personal may provide. The bank can pursue you for payment just as they would on a personal credit card. Closing the business does not close the card or erase the debt.