What to know about business credit cards for sole proprietorships

Quick insights

A sole proprietorship is an unincorporated business run by an individual, where there is no legal distinction between the business and the owner. In other words, the sole proprietor is personally responsible for the business’s taxes, debts and liabilities.

Business owners may not need to mix business and personal expenses, though, as many credit card issuers allow sole proprietors to apply for business credit cards. Having a business credit card can be a helpful way to access a line of credit for business expenses and earn rewards on everyday work purchases.

Learn more about applying for a credit card as a sole proprietor and some factors to consider.

How sole proprietors can get business credit cards

Some business credit cards require you to have an Employer Identification Number (EIN), but many allow you to apply with your Social Security number (SSN) instead. For many sole proprietors, an EIN might not be required, which provides a potential option for qualifying for a business credit card.

Keep in mind that some business cards may have other application requirements, like a minimum annual revenue or minimum time you’ve been in business, for example.

How to get a business credit card if you’re a sole proprietor

Curious if you can apply for a business credit card as a sole proprietor? While the answer varies by credit card, it is possible. Even if you don’t own a full-scale business, it can still be useful to separate business and personal expenses with a business credit card.

Sole proprietors may need to provide an SSN in place of an EIN when applying for a business credit card. Additionally, they may need to provide proof of income or business ownership in their application.

While sole proprietors can use personal credit cards for work purposes, there are plenty of benefits to using a business-specific credit card.

Benefits of business credit cards for sole proprietors

Using a business credit card as a sole proprietor can help you stay organized and earn rewards on business purchases.

Business credit cards may also allow you to:

Credit card options for sole proprietors

When choosing a credit card for your business expenses, it can be helpful to consider the rewards program, any fees associated with the card and other benefits like travel protection.

There are a variety of business credit cards on the market that may fit your needs as a sole proprietor. Many of these credit cards offer rewards programs that allow you to earn cash back or points on common business expenses.

Depending on the card, you might also have access to additional features, such as auto rental coverage, roadside assistance, purchase protection and extended warranty protection. Finding an option that aligns with your company's spending habits may help you earn rewards in your biggest spending categories.

How to apply for a business credit card as a sole proprietor

Before you apply for a business credit card, you can research and compare different options to find the best fit for your needs.

After you decide on a credit card, you may need to gather necessary information, including:

Providing up-to-date business details might help streamline the application process, as inaccurate or incomplete information on your application could lead to a rejection.

Read more about how to apply for a business credit card, including a breakdown of what documents you may need.

In summary

Applying for a business credit card as a sole proprietor can provide various benefits for business owners, including the ability to earn rewards on purchases, build business credit and separate business and personal finances. The right business credit card for your business may depend on its rewards programs and eligibility requirements.