Guide to business credit cards for LLCs

For a limited liability company (LLC), a business credit card—when used responsibly—can help manage finances, support growth and offer other valuable benefits. As a business owner, you might be wondering whether you need a business credit card and how to choose the one that best meets the needs of your LLC.

Use this guide to learn more about what a business credit card could do for your company’s growth and financial goals.

What you’ll learn:

• A business credit card can be used to fund purchases specific to your LLC, keeping your personal and business finances separate.

• When using a business credit card, you can earn rewards on business expenses, monitor employee spending and build your business credit scores.

• To find the best business credit card for your LLC, consider your spending habits, understand the rewards structure and review the terms and conditions.

• Capital One offers a variety of business cards, from traditional cash back credit cards like Spark Cash to charge cards with no preset spending limit like the Venture X Business and Spark Cash Plus, which earn you premium cash back and travel rewards.

When you’re first starting out, you may consider using a personal credit card to fund business purchases. But there are several reasons to consider having a credit card completely designated toward business finances, like:

• Providing a better understanding of your cash flow
• Simplifying expense tracking
• Aiding in tax preparation purposes
• Making financial reporting easier
• Streamlining the process of gathering information when applying for grants or loans

Business credit cards typically offer rewards and other benefits so you can get rewarded for making company purchases. Sign-up offers, cash back and bonus miles that can be used toward travel are just a few examples of benefits you may receive with a business credit card.

When used responsibly, a business card can be a tool to establish business credit. A strong business credit profile can make it easier to secure financing with better loan terms and obtain insurance with lower rates. By making on-time payments and paying off the balance in full each month, you can build your LLC’s business credit scores.

If your staff has spending power, you might look for a business credit card that provides free employee cards or allows you to add an authorized user. Some business card issuers, like Capital One, allow you to set custom employee spending limits—while earning rewards on every purchase they make.

Compared to personal credit cards, business cards often offer higher credit limits. This means you’ll have increased purchasing power, which can come in handy when you need to pay vendors or buy supplies, for example. Some cards, like the Capital One Venture X Business and Spark Cash Plus cards, don’t have preset spending limits, providing even more purchasing power.

There are a few things to consider when choosing a business credit card for your LLC, like:

It’s important to understand the card’s rewards program structure and determine whether it meets the needs of your business’s spending habits. For example, if you travel often, you might consider a card that offers rewards in the form of miles. Some cards also offer cash back or points that can be redeemed for gift cards, travel or statement credits, providing flexibility based on how you prefer to use your rewards.

As you compare options, look into specific card offerings like sign-up bonuses or introductory rewards. These limited-time incentives can provide significant value up front, potentially covering a portion of your initial business expenses.

When reviewing business cards with an annual fee, it’s helpful to weigh the fee’s cost against your spending habits and the rewards and benefits the card offers. In some cases, the extras like travel credits, lounge access or higher reward rates may far outweigh the cost of the fee.

Some business cards offer other benefits like anniversary bonuses, a statement credit for TSA PreCheck® or Global Entry, and fraud protection to meet the specific needs of your LLC. Additional features like purchase protection, extended warranties and expense management tools can also add value, especially for growing businesses.

Before applying for a business credit card, compare credit card issuers, rewards programs and card features. Look for cards that align with your business spending habits, whether that means maximizing cash back, travel rewards or generous introductory offers—because choosing the right card can help your business manage expenses while earning valuable benefits.

Business credit card applications, like personal credit card applications, will require basic information. To make the process smoother, it’s essential to have everything ready before applying. You’ll typically need the following:

• Employer identification number (EIN): You’ll need your EIN or Social Security number (SSN) if you’re applying as a sole proprietor.
• Business details: This includes your business’s legal name, address and industry type.
• Financial information: Your LLC’s annual revenue and estimated monthly expenses should also be at hand when applying.
• Personal details: With your business details, you’ll also typically be asked to supply your SSN and income information, especially if a personal guarantee is required.

Once you are ready, you can initiate the application process online or over the phone. Many issuers offer quick decisions, but some applications may require additional review. Once approved, you’ll likely receive your card within a few business days and can start using it for business expenses immediately.

Whether you’re looking for straight cash back rewards or robust travel benefits, here are three examples of business cards that can support your LLC’s needs while earning valuable rewards. For a complete list of Capital One business cards, check out the Capital One business card page.

The Spark Cash card is an excellent choice for LLCs and entrepreneurs who prioritize straightforward cash back rewards. Cardholders enjoy:

• 2% cash back on every purchase
• 5% cash back on hotels and rental cars booked through our travel booking site
• A $750 bonus after spending $7,500 in the first three months

And with no introductory annual fee for the first year ($95 after that), this card is a great option for businesses looking to maximize cash back rewards while managing expenses efficiently.

Unlike the Spark Cash card, the Spark Cash Plus is a charge card with no preset spending limit, and it offers:

• 2% cash back on every purchase

• 5% cash back on hotels and rental cars booked through our travel booking site 

• A $150 annual fee that is refundable each year you spend $150,000 or more

The Spark Cash Plus card is a great fit for LLCs with large expenses that can pay off their balance in full each month and are looking to maximize cash back rewards. It offers a welcome bonus opportunity where you can earn a $2,000 cash bonus when you spend $30,000 in the first 3 months. In addition, you can earn an additional $2,000 bonus for every $500,000 you spend in the first year.

The Venture X Business card from Capital One is a great option for frequent business travelers looking for premium benefits. This card offers best-in-class travel rewards, like:

• 2X miles on all purchases

• 5X miles on flights and 10X miles on hotels and rental cars booked through our travel booking site

• $300 annual credit for bookings through our travel booking site 

• 10,000 bonus miles every year, starting on your first anniversary

• Capital One Lounge access

• Flexible redemption options

Like the Spark Cash Plus card, the Venture X Business card is a no-preset-spending-limit charge card. This card is a great choice for businesses with higher spending needs looking to maximize travel rewards while maintaining flexible purchasing power. 

Just keep in mind that your balance must be paid in full each month and there’s an annual fee of $395.

As you start to spend money for your LLC, a business credit card can help you separate and track company expenses. Even if your LLC is small or new, you can use features like rewards programs, employee credit cards and high credit limits to manage and grow your business.

Capital One offers a variety of business credit cards to meet different business needs. Explore Capital One’s business card options to find the one that works best for your LLC—you can even check to see if you’re pre-approved without any harm to your credit.