Small Business Credit Cards - Does Your Business Really Need One?

One of the great things about life in America is that anyone can start and own their own small business. In fact, hundreds of thousands of people do just that. It wasn't until about 10 years ago that the major credit card companies began taking note of this in a serious manner, and began expanding their markets.

Today, every major bank and credit card company offers some form of business credit card to their customers. The question is, are they right for you?

For many, the thought process is this; I don't have employees so I can just use my regular personal credit card for my business. I really don't need a business credit card, right? You could do that, but it will make both you and your accountant pull your hair out at tax time, and it may even cost you money to boot.

Here are a few of the advantages of having a small business credit card:

Record keeping and taxes - This is one of the bigger reasons. If all of your business expenses are on one business credit card, tracking expenses and keeping track of records becomes a snap. You'll have your statements each month to give to your accountant, and your taxes will be much easier to figure.

Employees - Do you have employess in your small business? If so, a business credit card makes it possible to add one on the account and allow them to use it for business purchases when you're not there.

Building your business credit rating - By having a business credit card you are helping to build the credit rating of your small business. Don't underestimate the importance of doing this.

These are just a few of the many reasons why you may want your business to have its own separate credit card.

What type of card is right for you? It really depends on your situation. If you will be paying off your balance each month, then a card with few fees and a rewards program may be your best bet.

If you'll be carrying a balance from month to month, then look for a low interest business credit card.

I think you can see that having a business credit card offers you many advantages for your small business. The key is taking your time and finding the offer that is right for you and your situation.

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About the Author: Terry Edwards is the owner of Credit Cards A-Z, a site providing great information and help with credit cards. Find out more about Business Credit Cards as well as get more information about all types of credit cards at http://www.CreditCardOffersA-z.com