You don’t need an LLC to get a business credit card

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If you love maximizing travel rewards, you've probably thought about increasing your points-earning power by adding a few business credit cards to your wallet.

Not only do business credit cards often come with welcome offers worth hundreds or thousands of dollars, but you also get unique cardholder perks and the benefit of keeping your personal and work expenses separate.

But what if you don’t have an LLC or a formal business? You could still be in luck.

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It’s generally easier to get a business credit card if you have a bona fide business with an Employer Identification Number (EIN). If you have several years of business history under your belt, even better.

But that doesn’t mean you need a storefront, employees, or formal incorporation. Many business credit card issuers approve sole proprietors every day, including applicants whose “business” is simply freelance or gig work.

You might qualify if you earn money independently in any of the following ways:

• Dog sitting or dog walking
• Food delivery services (such as Instacart or Shipt)
• Freelance writing
• Retail arbitrage
• Ride share services (like Lyft or Uber)
• Tutoring
• Yardwork or mowing

In many cases, a sole proprietorship is simply you earning money under your own name. If you haven’t formally registered a business, you can usually apply as a sole proprietor using your legal name as the business name.

Need proof this can work? On many online business card applications, you can select which type of tax identification number you’re providing — EIN, SSN, or ITIN — depending on your situation.

Keep these tips in mind if you’re applying for a business credit card with a side hustle, not a formal company:

• Assess your personal credit. Even if you’re applying for a business credit card, your personal credit score will almost always be considered. Issuers evaluate your personal credit history and income when deciding whether to approve you. If your credit score needs improvement, consider waiting until it’s stronger before applying.
• Apply for a business credit card with your SSN. While you can apply with an EIN, many major issuers, including Chase, allow sole proprietors to apply using a Social Security number (SSN). In general, a FICO score of at least 670 improves your odds, although higher scores may increase your approval chances.
• ... or an ITIN. If you don’t have an SSN but file U.S. taxes, you may have an Individual Taxpayer Identification Number (ITIN). Some major banks allow business credit card applications with an ITIN instead of an SSN or EIN.
• It’s also common for applications to ask for estimated annual business revenue. If your side hustle income is modest, that’s okay. Provide a reasonable estimate based on what you actually earn or expect to earn. Inflating your numbers can backfire.
• Also consider application timing. Some issuers limit how many cards you can open within a certain period, or factor in how many recent accounts you’ve opened. If you’ve applied for multiple personal cards recently, that could affect your approval odds for a business card.

One more thing to understand: Most business credit cards require a personal guarantee. That means you’re personally responsible for repayment, even if your business income drops off or your side hustle doesn’t work out.

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Maybe you have the Chase Freedom Unlimited and Chase Sapphire Reserve, and you're wondering if you could ever qualify for the Ink Business Preferred or the new Sapphire Reserve for Business card.

Or maybe you have your eye on a business credit card from a totally different issuer, like the Business Platinum Card from American Express, if you’re looking to diversify the flexible points you earn and you want more premium perks.

The best business credit card for you depends on several factors:

• The rewards currency you value most
• Your ability to meet the minimum spending requirement
• The annual fee you’re willing to pay
• The bonus categories that align with your business expenses

For example, if your side hustle involves frequent online advertising or shipping costs, a business card with bonus rewards in those categories may make more sense than one focused on travel purchases.

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