Separating Business and Personal Credit Cards:
If you have your own business you know that there are lots of expenses involved. There are a lot of things you need to buy besides the things that will actually be a part of the building your business runs in.
There are small things here and there that require you to put money on your credit card or out of your checkbook to pay for them, such as paper for a printer, or the snacks for a board meeting. If this is the case it would probably be a great idea for you to get a specific business credit card so that you can separate your business credit card from your personal credit card.
There are many reasons why it would be a good idea to separate the two. If you use the same credit card for your personal expenses as well as business expenses it could lead to money management problems as well as tax problems for you.
In taxes you are allowed to deduct business expenses. If you share your business card and personal card in the same account it is hard to be convincing that you really have your own business and it is hard to be able to deduct that money. You have to be able to show that you really do have a business and that it really has expenses rather than having it look like you are just spending money on a hobby or something else.
Having a business credit card shows that you are actually serious about your business. It shows that you separate your personal and business expenses because it is important enough to you to run your business well. It is important for you to show people that you are serious about your business, and to protect yourself in case of an audit.
When you do your taxes, if you have both personal and business expenses on the same card doing your taxes could be a nightmare. You have to be able to show your history and be able to separate your business expenses from your personal expenses. It would be much easier to sort out, prove, and calculate what is business and what is personal if you had both separate and you were able to see the different expenses that you have for each category rather than having them mixed up.
Having a business credit card that is separate from your personal credit card is just a good idea. It would be smart for you to separate them and it would be much easier for you in the long run. It is not like it is very hard to apply for a credit card, and the benefits are huge. Other than having two cards to pay off, there really is no disadvantage to getting a separate credit card for our business.
If you apply for a business credit card and get it the only thing it would mean for you would be that you had to carry an extra card in your wallet and always pay business expenses separate from personal expenses. This would only be a problem if you were buying things in both categories at them same time.
If you were buying both business things and personal things at once it would simply mean you would have to pay for both of them separately. You would have to ring-up and pay for your own things and then go back and ring-up and pay for your business things. This may be annoying now and then but it is not like it is too hard, and it saves a lot of hassle later.
Weighing the positive against the negative aspects of having separate credit cards for business and personal expenses shows that the positive aspects far outweigh the negative. It is worth it for you to put in the extra effort and do something for your company that would be so beneficial.