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Are you a freelancer or have hundreds of businesses? Do you own one?

Having a dedicated business credit card makes it much easier to keep all your personal and business expenses separate for tax purposes and bookkeeping. will be They can also offer valuable protection and cardholder perks, such as cash back and points.

However, not all credit cards are created equal, and there are significant differences in liability, eligibility, and benefits among small business credit cards. and corporate credit cards. Read on to see the best options for your business.

What is the difference between a corporate credit card and a corporate credit card?

Most of the difference between small business credit cards and business credit cards stems from one key difference: liability. With small business credit cards, liability rests with the business owner. The business owner is responsible for paying any debts the business acquires on her credit card, and that credit is affected (whether good or bad) by activity on the account. For corporate cards, the liability is usually imposed on the business itself. This means that business owners typically do not take personal responsibility for their debts.

This fundamental difference is why business credit cards have stricter approval requirements than small business credit cards. Let's dig into some of these differences.

Small Business Credit Cards

Business credit cards are designed for small business owners, but they generally function like traditional consumer credit cards. increase. Businesses of all types and sizes – from side businesses to multi-million dollar empires – can take advantage of business credit cards. Approval for a small business credit card typically requires:

  • At least a “fair” personal credit score. However, higher is always better
  • Business tax identification number (EIN) or personal social security number

In general, small business credit cards Easier to use than corporate credit cards. Still, this option has pros and cons.


  • Get rewarded for spending and employee spending
  • Credit card options Easily compare online
  • Pool individual and employee rewards Business cards of the same program
  • More for startups because they are easily approved without extensive business credit history


  • Employers can personally You are held accountable
  • Employees cannot be held jointly and severally liable for purchases made using their employee cards
  • They may not come with as many expense tracking tools as corporate cards

Corporate credit cards

Corporate credit cards are larger and more established. Designed for enterprise. To be approved for a corporate credit card, you typically need:

  • Millions of dollars in annual revenue
  • Established business credit history
  • Corporate status (C-Corp, S-Corp, or Some LLCs)

Even if it sounds like your business, know that corporate cards have their pros and cons.


  • You are in control.
  • Potential to earn cash back
  • Employees


  • Online application is not easy
  • Less protection when buying
  • Approval requires an established business credit history

Key differences between business and corporate cards

Business credit card Corporate Credit Card
Who is responsible? The business owner signs a personal guarantee and is responsible for all debts (including debts claimed by employee cardholders). Usually, the business owner has a debt.
Who is this? All business types, including informal and unregistered businesses. Business size, business creditworthiness, and revenue are generally not required. An established company with multi-million dollar annual revenue, good business credit and the ability to meet high spending thresholds. Specific requirements vary by issuer.

How to decide whether to use a corporate credit card or a business credit card

A few questions indicate. Here are some things to consider when deciding whether to use a corporate card or a small business card:

  • Do you want your employees to be jointly and severally liable for purchases made using their cards? If you want to be jointly and severally liable for purchases (including personal expenses charged by employees), corporate cards are the way to go. However, if your employees just want to have a way to charge their purchases and don't mind taking all the responsibility, a small business card account will suffice.
  • Are you sure? How do I earn traditional credit card benefits?Small business credit cards tend to offer better rewards programs than corporate cards, allowing you to You may also earn the same type of rewards. For example, if he has a personal credit card that earns Chase Ultimate Rewards points, he can sign up for a Chase business credit card that offers the same benefits and pool all his points into one account. increase.
  • What benefits do you expect from cardholders?Both types of cards offer different benefits. If you're looking for a 0% annual business card and consumer protection like travel insurance, we recommend a small business credit card.

Switching: Moving From Small Business Cards to Corporate Cards

As your business grows rapidly and you manage hundreds of employees, you've never been We recommend that you consider a corporate credit card instead of the small business card you were using. This makes sense if you want access to detailed spending reports that some corporate cards offer, or if you want your employees to be jointly and severally liable for the purchases you charge to your account.

However, corporate credit cards are generally best suited for businesses that make millions of dollars each year or have a large number of employees making purchases on their behalf. Your business must also have an established credit history before applying.


The important part of being a business owner getting a business credit card. That's true whether you're part and employ hundreds of employees or just yourself. Make sure you have the right type of business credit card for your business and that you have access to the tools and resources you need most.

The best business credit cards also earn cash back and travel rewards. This can add up quickly if your business spends a lot on various purchases and inventory each month.