Credit Cards for Self-Employed?

**GTAce** · 09-28-2007, 09:34 AM

Alright, so, I'm getting to the point now where I'm make a lot of money and spending a lot of money. Come tax time, I'm going to have a lot of expenses to write off, and right now mixing my "web" expenses with my personal expenses is not going to cut it.

I'm looking to get a credit card that I'll only use for my internet marketing and what not. When tax time comes around, I'll write off everything on that card as business expense.

So - does anybody have any good recommendations for credit cards that work well in this situation? If you can't think of one specifically for this, just let me know what your credit card recommendations are.

Thanks

**LeeD** · 09-28-2007, 10:00 AM

Honestly, any credit card will work. There are plenty of CC's out there that offer a card for sole proprietors (which is what I assume you are). So the card will have your name on it along with what ever biz name you have if any. You could even use a secondary "personal" credit card for that matter, while leaving it for business use alone. Any of the credit cards should be easy to get really.

**GTAce** · 09-28-2007, 10:45 AM

Thanks Lee - I've actually not registered myself as a business yet...but I am looking into a sole proprietorship, which I would do before getting a credit card...but it's my understanding that I don't exactly "do" anything to be a sole proprietor. There's no paperwork to file...I just become a sole proprietor when I call myself one.

In the meantime, I was just wondering if anybody knew of any good credit cards out there that are set-up specifically for this use. If not, I know just about any credit card will work...and that's what I'll do if nobody else suggests otherwise

**dadofgage** · 09-28-2007, 10:28 PM

Honestly, check out American Express.

I love how their bills are set up and you get decent rewards with the points you earn from using the card.

I used their travel site to book a vacation and got an extremely good rate for airfare/hotel combo that beat the socks off of travelocity, expedia, etc.

**Joseph Williams** · 09-28-2007, 10:46 PM

My WaMu Mastercard has nice rewards

**The Fat Boy** · 10-02-2007, 02:32 PM

Credit is evil.

Use a debit card.

And for Pete's sake, incorporate.

**xboxundone** · 10-09-2007, 06:28 PM

AMEX!!!! all the way! they are the best and give the most flexibility for a growing business... Use the credit cards rewards to your advantage to get gifts for family for birthdays etc.. I have had many different cards but none can touch an American Express card. also if oyu are self employed and making over i think 50K it is worth it to you to form a corporation... be weary of which type etc cause different ones are subject to different laws.. consult a CPA.

**JulieLA** · 10-09-2007, 06:55 PM

Incorporating isn't always the answer and can generate more taxes. Get a good accountant first and then ask his/her advice. There are pros and cons to incorporating or remaining a sole proprietorship.

I've been self employed for 20+ years. Getting credit cards is easier now than it used to be but when you go to get a REAL loan - car or mortgage - that's when you'll run into problems. I've never had problems getting a credit card (well, not since the Nixon credit freeze, but that tells you how old I am!).

Pay yourself a salary from which taxes are withheld. Your accountant should also be able to set this up for you. You don't have to be incorporated to do it - sole proprietorships can do the same thing.

If you have a local Costco, they have great services for small businesses. I like their AmEx card - pay for everything with the card and get cash back.

**xboxundone** · 10-17-2007, 10:40 AM

Quote:

Originally Posted by JulieLA

Incorporating isn't always the answer and can generate more taxes. Get a good accountant first and then ask his/her advice. There are pros and cons to incorporating or remaining a sole proprietorship.

I've been self employed for 20+ years. Getting credit cards is easier now than it used to be but when you go to get a REAL loan - car or mortgage - that's when you'll run into problems. I've never had problems getting a credit card (well, not since the Nixon credit freeze, but that tells you how old I am!).

Pay yourself a salary from which taxes are withheld. Your accountant should also be able to set this up for you. You don't have to be incorporated to do it - sole proprietorships can do the same thing.

If you have a local Costco, they have great services for small businesses. I like their AmEx card - pay for everything with the card and get cash back.

I agree incorporating isnt for everyone but if you have any significant revenue there are many tax benefits of being a corporation that you couldnt accomplish as self employeed... you need to make over atleast 50K a year to make it worth while... but once you do and you have good CPA it is worth its weight in gold!!!!!!!

unk:

**TurboTek** · 10-17-2007, 01:23 PM

Like others have said it is best to consult a lawyer and/or CPA and ask them.

As a side note I have had an LLC since 2003, and I used LegalZoom to set it up. They are a great resource for things like that. www(.)LegalZoom(.)com

**imported_john2k** · 10-21-2007, 04:37 PM

Regarding the credit card, you might want to get one that offers a categorized end of year statement. It will at least be useful for when you do your taxes. AFAIK, the IRS doesn't want just a lump sum of all expenses - some categorization/explanation is required.

Quote:

Originally Posted by GTAce

but it's my understanding that I don't exactly "do" anything to be a sole proprietor. There's no paperwork to file...I just become a sole proprietor when I call myself one.

You would probably need to at least file for a business license in your area. Some areas have zoning laws that do not permit certain types of businesses from being operated out of a residential property, or there are special ordinances for home businesses such as no signs, no customers on site, no non-family employees working from the location, etc. Also register your trade name as well. You may also need to register to collect sales taxes if your state and product/service type requires you to do so. Just some things for you to consider...

Quote:

Originally Posted by JulieLA

Pay yourself a salary from which taxes are withheld. Your accountant should also be able to set this up for you. You don't have to be incorporated to do it - sole proprietorships can do the same thing.

As far as I am aware, business income and personal income are basically the same thing when you are a sole proprietor. Sole proprietors can pay themselves a salary, but any profits are still taxed as personal income.

When the business is a corporation or an LLC you can salary yourself and end up paying the FICA taxes only on your salaried amount. Any corporate/LLC profits might have to pay corporate tax and then a capital gains tax when the profits/dividends are paid out to the owner(s).

**AffiliateGuru** · 01-23-2008, 12:42 AM

I would suggest you get a business credit card that offers some type of cash back rewards program, so for every dollar you spend on your everyday business expenses you get some money back.

**MarketLeverage** · 01-29-2008, 10:27 AM

I would suggest setting up a business checking account. Any online income goes in there and any "business" expenses come out of there. It is a lot easier to spend more money on PPC on a credit card rather than paying it with cash (business check card).

**AtoZ** · 02-07-2008, 04:06 AM

Quote:

Originally Posted by The Fat Boy

Credit is evil.

Use a debit card.

Debit cards come with a lot more liability in the case of fraud.

I have a Chase Business card. It has a nice summary statement like someone else recommended. When I was starting out, I just designated one of my regular credit cards for business expenses so I'd have all my business expenses on one statement. The second bank account is also a must so you can keep everything separate.

**imported_gayan** · 03-01-2008, 04:34 AM

Try with hsbc credit card. it access all over the world. Why don't you use e-gold/paypal for your online money transaction.

**mattman24023** · 04-02-2008, 10:58 PM

Thats a wonderfull idea i think i might do that too thank you

**yankees51** · 04-25-2008, 03:30 PM

Quote:

Originally Posted by The Fat Boy

Credit is evil.

Use a debit card.

And for Pete's sake, incorporate.

Never, ever use a debit card - specifically when buying online, infact never use a debit card if someone has to take it from you - like a waiter

Debit cards do NOT offer the same fraud protection as credit cards.

Credit is only evil if you let it turn to debt. Use a CC and pay it off at the end of the month

09-28-2007, 10:28 PM	#4 (permalink)
dadofgage Extreme Talker Posts: 224 Talkupation:	Honestly, check out American Express. I love how their bills are set up and you get decent rewards with the points you earn from using the card. I used their travel site to book a vacation and got an extremely good rate for airfare/hotel combo that beat the socks off of travelocity, expedia, etc. __________________ Get Your Own Forum/Site Menu Firefox Extension Now! A Web Designers/Coders/Marketers Blog

09-28-2007, 10:46 PM	#5 (permalink)
Joseph Williams Marketing Wizard Posts: 109 Talkupation:	My WaMu Mastercard has nice rewards __________________ My 1st Year Internet Marketing Poker Forums \| Internet Cash Blog

10-02-2007, 02:32 PM	#6 (permalink)
The Fat Boy $100 - $999 Monthly Posts: 196 Talkupation:	Credit is evil. Use a debit card. And for Pete's sake, incorporate. __________________ My website, Fat Boy Magazine, is definitely NSFW, but if you like girls, fighting, movies and music, you'll friggin love it...

01-29-2008, 10:27 AM	#13 (permalink)
MarketLeverage Average Talker Posts: 15 Name: Debby Location: Lake Mary, FL Talkupation:	I would suggest setting up a business checking account. Any online income goes in there and any "business" expenses come out of there. It is a lot easier to spend more money on PPC on a credit card rather than paying it with cash (business check card). __________________ Market Leverage - CPA Affiliate Network Market Leverage News - Industry's First Online Affiliate Marketing Videos

03-01-2008, 04:34 AM	#15 (permalink)
imported_gayan Junior Talker Posts: 53 Talkupation:	Try with hsbc credit card. it access all over the world. Why don't you use e-gold/paypal for your online money transaction. __________________ EARN MONEY ONLINE MAKE MONEY ONLINE MAKE MONEY ONLINE SURFING

09-28-2007, 09:34 AM	#1 (permalink) Credit Cards for Self-Employed?
GTAce Posts: n/a	Alright, so, I'm getting to the point now where I'm make a lot of money and spending a lot of money. Come tax time, I'm going to have a lot of expenses to write off, and right now mixing my "web" expenses with my personal expenses is not going to cut it. I'm looking to get a credit card that I'll only use for my internet marketing and what not. When tax time comes around, I'll write off everything on that card as business expense. So - does anybody have any good recommendations for credit cards that work well in this situation? If you can't think of one specifically for this, just let me know what your credit card recommendations are. Thanks

09-28-2007, 10:00 AM	#2 (permalink)
LeeD Humble Overseer Posts: 3,075 Name: Lee Location: Texas Talkupation:	Honestly, any credit card will work. There are plenty of CC's out there that offer a card for sole proprietors (which is what I assume you are). So the card will have your name on it along with what ever biz name you have if any. You could even use a secondary "personal" credit card for that matter, while leaving it for business use alone. Any of the credit cards should be easy to get really.

09-28-2007, 10:45 AM	#3 (permalink)
GTAce Posts: n/a	Thanks Lee - I've actually not registered myself as a business yet...but I am looking into a sole proprietorship, which I would do before getting a credit card...but it's my understanding that I don't exactly "do" anything to be a sole proprietor. There's no paperwork to file...I just become a sole proprietor when I call myself one. In the meantime, I was just wondering if anybody knew of any good credit cards out there that are set-up specifically for this use. If not, I know just about any credit card will work...and that's what I'll do if nobody else suggests otherwise

10-09-2007, 06:28 PM	#7 (permalink)
xboxundone Junior Talker Posts: 1 Name: david Talkupation:	AMEX!!!! all the way! they are the best and give the most flexibility for a growing business... Use the credit cards rewards to your advantage to get gifts for family for birthdays etc.. I have had many different cards but none can touch an American Express card. also if oyu are self employed and making over i think 50K it is worth it to you to form a corporation... be weary of which type etc cause different ones are subject to different laws.. consult a CPA.

10-09-2007, 06:55 PM	#8 (permalink)
JulieLA $100 - $999 Monthly Posts: 74 Talkupation:	Incorporating isn't always the answer and can generate more taxes. Get a good accountant first and then ask his/her advice. There are pros and cons to incorporating or remaining a sole proprietorship. I've been self employed for 20+ years. Getting credit cards is easier now than it used to be but when you go to get a REAL loan - car or mortgage - that's when you'll run into problems. I've never had problems getting a credit card (well, not since the Nixon credit freeze, but that tells you how old I am!). Pay yourself a salary from which taxes are withheld. Your accountant should also be able to set this up for you. You don't have to be incorporated to do it - sole proprietorships can do the same thing. If you have a local Costco, they have great services for small businesses. I like their AmEx card - pay for everything with the card and get cash back.

10-17-2007, 01:23 PM	#10 (permalink)
TurboTek $5,000 - $9,999 Monthly Posts: 28 Talkupation:	Like others have said it is best to consult a lawyer and/or CPA and ask them. As a side note I have had an LLC since 2003, and I used LegalZoom to set it up. They are a great resource for things like that. www(.)LegalZoom(.)com

01-23-2008, 12:42 AM	#12 (permalink)
AffiliateGuru Junior Talker Posts: 16 Talkupation:	I would suggest you get a business credit card that offers some type of cash back rewards program, so for every dollar you spend on your everyday business expenses you get some money back.

04-02-2008, 10:58 PM	#16 (permalink)
mattman24023 Junior Talker Posts: 4 Talkupation:	Thats a wonderfull idea i think i might do that too thank you