Incorporating an LLC: A Simple Guide

You may have heard that locking down a good business credit card is one of the crucial ingredients for running a successful business. But is that really true, or is your personal card sufficient? And if it turns out you need one, how do you pinpoint the benefits and figure out which type of card to pick? If you need answers to these questions, keep reading to learn more about the difference between a business and a personal credit card. Key Differences & Similarities  Business and personal credit cards share a few common characteristics. Just like with personal cards, most business credit card applicants are personally responsible for the debt if their business fails. Also, in both cases, annual fees are tax-deductible as long as the cards are used to cover business expenses.  In fact, business credit cards designed for freelancers, side hustles, and part-time gigs function a lot like personal ones. In some instances, a personal credit card is a better fit, as there is no law preventing you from using personal credit cards for business purchases.  However, by going with a personal credit card, you are missing out on the opportunity to build your business credit scores. Most business credit cards report your activity to both consumer and commercial credit bureaus. However, some report exclusively to the latter and, as such, only affect business credit scores. Building your business' credit is as important as maintaining your personal one as it represents your company’s creditworthiness. Another reason to separate ​​business and personal spending is to make bookkeeping for your business as easy as possible, especially come tax season. If you use the personal credit card for both, you may find it difficult to discern which purchases were made for business and are thus tax-deductible.  The IRS doesn’t allow tax deductions on personal, living, or family expenses on your tax return. In short, by mixing the two, you could be missing out on tax deductions or risk getting audited by the IRS. There is another key distinction between these two types of cards that’s especially relevant for companies with high operating costs. Most business credit cards have higher credit limits, which can serve as a lifeline to small businesses. We’ll delve deeper into some of these perks in the sections below.     Benefits of Using Personal Credit Card for Business Purchases Personal credit cards can be used to cover business expenses, especially if you are a one-man show or in the process of building your business from the ground up. Here is why you might consider using a personal card instead of a business one. Personal Credit Cards Typically Have Lower Fees If you have a good credit score, you’ll likely get better rates with a personal credit card rather than a business one. Personal credit cards typically come with lower annual fees and, on average, lower interest rates. Considering how every penny counts when you’re just starting your business, using personal credit cards for business makes sense in some cases. Personal credit cards also offer better protection thanks to the Credit Card Act of 2009. Under this law, credit card issuers are obligated to give advanced notices about limit penalties and APR increases. But some of these protections don’t extend to businesses, which means you run the risk of not being notified about significant changes in fees. Some Personal Credit Card Rewards Might Be a Better Fit Many personal credit cards come with useful rewards. Some of these might be a better fit for your business than those offered through business credit cards.  For example, one of the benefits of business credit cards may come in the form of excellent cashback for purchasing office supplies. However, if you buy two pens per month, you might benefit more from regular cashback rewards that cover multiple categories. That said, there are a range of benefits to separating your business and personal purchases.  The Benefits of Having a Business Credit Card  Now that we’ve covered why you might decide to go with a personal credit card, let’s check why going with a business credit may be a better option. Higher Spending Limits Businesses typically spend more than your average consumer. That’s why business credit cards tend to offer higher spending limits. With a higher spending limit, you can cover more significant costs than when using a personal credit card for business, especially when trying to manage inventory costs. When speaking of operating costs and transactions, you'll find that many business credit card issuers often add tools for tracking business expenses. These features will come in handy, especially when you are just starting your business and you’re not used to handling business expenses. Free Employee Cards Once your business does start growing, you can utilize other benefits of business credit cards, including free cards for employees.  Keeping Your Credit Utilization Ratio Low The credit utilization ratio is used to describe the percentage of the card’s credit limit that the holder is using. The ratio has a significant effect on your credit score.  Those who use personal cards for business purchases drive up the credit utilization ratio and, by extension, lower their credit scores. On the other hand, those who separate their business and personal finances drive up their scores by using less of their available credit.        To maintain a good credit score, you need to keep your credit utilization ratio below 30%. In other words, to prevent business purchases from making a dent in your personal credit score, you should have separate business cards from personal cards.  Building Your Business Credit Score Using personal credit cards for business doesn’t just harm your personal credit score, but you’re not doing your business any favors, either. By making business purchases with a business credit card, you are building your business’ credit score.  This credit score can make it easier to find the right office space and secure business loans. Furthermore, your customers, potential investors, and partners use this metric to determine whether your business is worth their time and money. Additional Perks of Using a Business Credit Card  In addition to boosting your financial standing, a business credit card will often have excellent rewards designed to help you save some of the profits that would otherwise go toward business expenses. Let's check them out. Save on Interest With Introductory APR Business credit cards with 0% APR are a great way for businesses of all sizes to manage their finances and grow their operations. Since both types of cards can offer this introductory APR, if you don’t have large expenses, it won’t exactly settle the business credit card vs. personal credit card debate.  However, if you do make larger investments, these introductory promotions where the interest is waived for a set period of time, typically between six and 18 months, can make all the difference. This makes it easier for new businesses to handle startup costs and make purchases without worrying about paying interest or accruing debt on their accounts. Save on Expenses Using Rewards Programs Many business credit cards offer rewards programs that can save you money on business expenses. Some of the rewards you can rely on are travel points, cashback, or points you can exchange for other perks. There are also a few saving programs that serve as generous benefits of business credit cards. The first step is figuring out what type of rewards you are looking for. Some programs offer cashback or points that can be redeemed for merchandise or travel. Others may offer discounts on business expenses such as office supplies or fuel. There are also some programs that offer a combination of rewards. Ultimately, you can always rely on a cash-back rewards program if you don't consistently spend enough to make use of other types of rewards. Finally, make sure to compare the different options to identify the program that offers the best value for your business. By taking the time to research your options with a business credit card or a personal one, you can reduce your expenses and pinpoint the most relevant benefits. Things to Look Out for When Choosing a Business Credit Card Aside from the potential benefits, there are a number of important aspects that require your attention when choosing the right credit card. Annual and Interest Fees Most business and personal credit cards come with annual fees. The fact that these fees can range anywhere from $50 to $500 is a critical part of the business vs. personal credit card showdown. Also, the annual fee is often offset by the rewards and perks that come with the card. In addition, business credit cards usually have higher interest rates than personal credit cards. This is because businesses are considered to be a higher risk than individuals when it comes to credit. However, you can avoid paying interest on your business credit card by paying your balance in full each month. This will help you save money and keep your business finances in order. Consumer Protection Consumer protections for personal and business cards may vary greatly but can be a crucial component in managing a company’s finances.  These protections help to ensure that businesses are able to access the funds they need when they need them without being subject to hidden fees or invasive account monitoring. They also help prevent unauthorized use of credit card accounts and provide limits on spending and borrowing. For small businesses, these protections can provide much-needed financial stability. Summing it Up So, should you get a business credit card or use a personal one to cover business-related expenses? While some freelancers and part-timers can get away with using a personal credit card for business expenses, a business credit card offers perks and protections to small businesses that simply aren’t available with a personal credit card. It can also help you build your business credit score and improve your personal one, which is important for accessing funding and other opportunities down the road.

It is not uncommon for people to have questions or concerns about the ownership of a particular business. Whether you are a potential customer of a business, an investor, or simply curious, there are several ways you can go about finding out who runs the show.  If you’re wondering how to find the owner of a business, here are some of the best methods to try. Check the Company Website Most companies list their ownership information on their website, either on the “About Us” or “Contact Us” page, so start there. This is the quickest and most efficient way to identify the owner of any business, anywhere in the world.  If the company is a large corporation or publicly traded, you may find an executive team page with contact information for the board of directors. It’s also helpful to research whether the business is a sole proprietorship, partnership, limited liability company, or a corporation.   Check Social Media Accounts When you’re pondering how to find out the owner information of a business, and the business owner’s name isn’t listed on the website, you can try social media. Many registered businesses list their ownership information in the “About” section of their social media accounts. Check the business’s Facebook, Twitter, and LinkedIn accounts to see if this information is available. Many business owners list LinkedIn as their social media of choice as it generates 277% more leads than Facebook and Twitter. So it’s also worth checking if the owner has a personal social media account. This can give you insights into their background, interests, and goals for the business. Contact the Business Directly If all else fails and you can’t find the owner’s name through their social media company page, you can try contacting the business’s Facebook page administrator. But how do you find the owner of a Facebook business page? The task is not complicated, as it only requires you to find the business’s page, click on Settings, and then on Page Roles.  Regardless of whether the actual owner of a business is listed among the page administrators, you’ll be able to find a name there that you can contact for further information. You may even find a listed phone number and ask to speak with the owner, or you can send an email to the provided contact email address. Keep in mind that the business may not be willing to disclose this information, but it is worth a try. Look Up the Business’s Legal Documents Depending on the type of business and its location, the owner’s information may be publicly available through legal documents such as articles of incorporation or business licenses, as all businesses should be registered by state. You can typically find these documents if you browse registered business databases, search registered business databases, or the portal of local government. If you need to find a business owner due to a legal issue or dispute, you can always hire a law firm or online legal services to handle this for you. Use a Business Search Service Here’s a potentially unpopular opinion on how to find the owner of a business at a given address without fail: pay for a business search service. While these private search companies often require a subscription or a fee before allowing access to their business records, they are a useful resource. Look for Press Releases or News Articles If the business has received any media attention, your job should be easier, as you’ll likely be able to find the owner’s name in a press release or news article. Search online for the business name and see what information has been shared.  From there, you can peruse articles in search of a CEO’s name or other clues that may lead you closer to finding the person you’re looking for.  Final Thoughts Searching for information on who owns a business may seem complicated at first, but it is entirely up to how you go about it. By using the strategies we’ve presented in this article, you should be able to do a thorough search and hopefully find the owner of a business with ease.  Once you find the owner or someone who works for this business, be polite and professional when you talk to them. And be prepared to explain why you are looking for this information. Now that you know how to find the name of a business owner, it’s time to give it a try. With a little bit of effort and persistence, you should be able to find the information you need in no time.

A business plan is a document that outlines your business goals and objectives and how you plan to achieve them. It covers everything from your business history and background to your marketing strategy and financial projections. It’s designed to help you navigate your business journey, attract investors, and secure funding. So, is a business plan worth the time and effort? The short answer is yes if you want to put your business on track to success. Keep reading to find out more. Do You Need a Business Plan? Business plans are a prominent feature of the modern business world. They play a critical role in helping entrepreneurs secure funding and getting businesses off the ground, but they can be time-consuming and difficult to create. Figuring out whether you need a business plan depends on everything from your goals to the business life cycle. If you’re starting a new business, the importance of a business plan is obvious. A business plan can help you outline your ideas and determine what steps you need to take to make your business a reality. However, if you’re further along in your business journey, a business planning process may not be worth your time. Some entrepreneurs think that since they already have a clear vision for their businesses, creating business plans is just a formality. Why Is a Business Plan Important? There are many reasons why you should put your business ideas on paper, even if you’re not looking for funding or investment. A business plan can help you in the following ways: Help you start your business With a written plan, you increase your chances of actually starting a new business rather than simply giving up on a good idea. A completed plan paints a clearer picture of what you need to do to start and run your business successfully. Improve team satisfaction and performance Another purpose of a business plan is to help you communicate your vision to your team and get everyone on the same page. Having a comprehensive business plan can also improve job satisfaction because employees will feel like they are working towards something larger. Furthermore, studies have shown that businesses with a plan are more likely to outperform businesses without one. Make better business decisions Writing a business plan can help you make better business decisions because it forces you to think through all aspects of your business. For example, when you're planning your marketing strategy, you'll need to consider your target market, budget, and objectives. This process can help you save money and make more informed decisions about how to allocate your resources. Secure funding If you're looking for prospective investors, a business plan is essential. As a matter of fact, the most common use of business plans is to show investors the potential of your business and how you're going to use their money to grow your company. Without a business plan, it will be difficult to convince angel investors to give you the funding you need. Look into the viability of your business idea Business plans can help determine if your business idea is viable. This is important because it can save you a lot of time and money if you realize that your business idea isn't going to work before you've invested too much into it. To do this, you'll need to research your industry, competitors, and target market. This process can be time-consuming, but it's worth it when trying to identify potential pitfalls. Track your progress Building a business plan can help you track your progress and measure your success. This is important because it allows you to see how far you've come and what needs to be done in the future. Without a business plan, it can be difficult to set milestones and track your progress. Attract partners If you're looking for business partners, a business plan can be helpful. This is because potential business partners will want to see that you have a clear vision and a plan for achieving your operational goals. Without a business plan, it can be difficult to find business partners who are willing to invest in your company. Secure insurance Another reason why you need a business plan is to secure affordable business insurance. In order to pick the right insurance and get the necessary coverage, you need to assess all the potential risks. This may be difficult without a business plan. Get a business loan Most business loan applications won’t be considered without a business plan. Banks and other financial institutions want to see how much money you really need, how you plan to use it, and how you expect it to benefit your business.  Lease a commercial space The purpose of business planning also extends to the leasing of commercial space. To get the right property under the right terms, you’ll need to lock down the perfect lease agreement. Landlords expect to see financial statements and a business plan to give them a sense of what you're doing and how you plan to cover long-term expenses. Understand your competitors During the planning process, you'll learn about the competition. This is important because it tells you what makes your competitors unique and what you can do to get ahead. It might be tough to research your rivals and grasp their business methods if you don't have a business plan. Better understand your clients When you're mapping out your business plan, you'll also gain an understanding of your target market and customers. The importance of business planning is to help you identify the right market and what potential customers are looking for. Researching your target market can be difficult, but it's an important part of creating a profitable business. Practice your business presentation If you're going to be pitching your business to potential investors, you need to have a strong business plan. This is because your business plan will be your roadmap during the presentation. Without a business plan, it may be difficult to keep your presentation on track and focused. Avoid failure The main purpose of writing a business plan is to help you avoid failure. This is because it forces you to think about all aspects of your business and ensures that everything is in place before you launch. Without a business plan, it's easy to overlook things that could cause your business to fail. Grow faster A business plan can help you grow your company. With a good plan, you'll get a clear roadmap and stay focused on your goals. Moreover, a good marketing plan will increase your chances of thriving faster. Without it, it can be easy to get sidetracked and waste time on activities that don't help you grow a successful business. What Makes a Good Business Plan? While there is no one-size-fits-all approach to writing a business plan, there are certain elements all successful business plans share. These include a clear description of your business, your business goals, a market analysis, an analysis of the competition, and a financial plan. There are different types of business plans for different types of businesses. For example, a startup business plan will be different from a business plan for an established company. The type of business plan you need will also depend on your goals. Bottom Line Overall, a business plan is worth the time and effort because it serves as a roadmap for success. If you're looking to start a business, secure funding, or attract business partners, a business plan is essential. Additionally, a business plan can also help you track your progress, make better business decisions, and understand your competition.