Have you ever thought about getting one of those excellent Chase business credit cards, but thought you needed a big company to do it? Well, guess what? You don’t!
Chase is famous for its business cards because they offer some serious bang for your buck, with very competitive sign-up bonuses, great rewards, and access to their extremely valuable Ultimate Rewards points.
A lot of folks don’t bother applying for one thinking they need this huge corporation. But actually, if you’re a sole proprietorship, you’re often good to go. In fact, I’ve applied and got approved for dozens of business credit cards throughout the years. And so in this post, I’ll break it down how you can get a business card yourself (prepare to be surprised at how easy it can be)!
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Chase’s Best Business Cards: A Quick Look
Before we dive into the “how-to,” let’s briefly talk about the most popular Chase business cards that earn valuable Ultimate Rewards points:
- The Sapphire Reserve for Business℠ is a bit pricey with its $795 annual fee, but it offers excellent value for small business owners. We’re talking a huge welcome bonus, category rewards tailored to business spendings, and fantastic rewards. They even offer access to those fancy Chase Sapphire Lounges.
- The Ink Business Preferred® Credit Card has a $95 annual fee and is just an all-around solid card. It’s got a massive welcome bonus shipping and earns 3x points on social media and search engine advertising; travel; internet, cable, and phone services.
- The Ink Business Cash® Credit Card is a no-annual-fee gem that offers up to a $750 sign-up bonus. It offers 5x points in certain categories, which means those points can pile up super fast, especially with its welcome bonus.
- The Ink Business Unlimited® Credit Card is another no-annual-fee winner and is perfect for everyday spending with its straightforward 1.5% unlimited cash back. Plus, it’s got a great $750 welcome offer too.
Here’s a cool thing: you don’t have to pick just one of these. You can actually apply for all of them and rack up those bonuses. They even work great together, complementing each other’s strengths. And if you’ve got more than one side hustle, you can even get the same card for different businesses.
While we’re mostly focusing on Chase Sapphire and Ink cards here, the whole “applying as a sole proprietorship” trick works for other Chase business cards too, like the Southwest Rapid Rewards Performance Business Credit Card or the World of Hyatt Business Credit Card.
It also works for the Chase Business Complete Checking account, which offers a up to a $500 welcome bonus!
Applying for a Chase Business Card as a Sole Proprietorship: The Lowdown
Okay, so you don’t need a corporation. But what exactly is a sole proprietorship, and how do you apply for a business credit card with one? Let’s get into it.
What’s a Sole Proprietorship, Anyway?
Think of a sole proprietorship as the simplest kind of business. It’s just one person running the show, and it’s not set up as a formal corporation. Basically, you are the business. This means your personal and business finances are pretty intertwined, and you report your business income on your personal tax return.
Typically, there’s no red tape to setting up a sole proprietorship. You often don’t even need to officially register it. For a lot of us, a side hustle totally counts as a sole proprietorship.
Maybe you sell things on eBay for a profit, deliver food with Uber or DoorDash, or take care of pets on the side. Having a business card can be super helpful for keeping your business expenses separate from your personal ones. And, of course, those lucrative business card bonuses don’t hurt.
How to Fill Out the Application
When you’re applying for a business card as a sole proprietorship, here’s how to tackle the business information section. I did this myself for the couple of Ink Business cards I hold and I plan to apply for the Chase Sapphire for Business card soon:
- Legal Business Structure: Just pick “sole proprietorship.”
- Legal Business Name: You can simply use your own name here.
- Tax ID Type: Select “social security number” and then punch in your personal SSN.
- Number of Employees: You’re the boss, so put “one.” Your business phone number can be your personal one.
- Business Establishment Date & Revenue: Just fill in the actual info for your business.
- Business Category: Choose whatever best describes what your sole proprietorship does.
I’ve written more about the eligibility requirements for Chase Ink cards and my own experience getting approved with a sole proprietorship if you want all the details. Oh, and remember that whole Chase 5/24 rule? Applying for business cards before personal ones used to be a big deal, though it’s not as strictly enforced across the board anymore. Still, something to keep in mind.
What Are Your Chances of Approval?
You don’t need a million-dollar business with a dozen employees to get approved for a business card. Plenty of people get approved as a sole proprietorship with just one employee, limited revenue, and not a ton of business history.
That said, if you say you have zero revenue and your business just started yesterday, your odds might be lower. The more history and revenue you have, the better your chances of getting approved.
Either way, your approval chances will increase the better your personal credit score is.
Ultimately, you’ve got to use your own judgment. But assuming you have great credit, there’s a lot to gain and not much to lose. Typically, your score only takes a small, temporary hit from a credit inquiry, and getting denied doesn’t have long-term consequences. Plus, business credit cards generally don’t affect your personal credit score.
Don’t Leave Points on the Table!
Chase’s business cards are excellent and the best thing is you don’t need a huge corporation to apply for them. Many sole proprietorships, including me, apply without any issues.
I hope my breakdown makes the process seem a bit less scary. I know applying for business cards can feel intimidating if you’ve never done it before, but a lot of people are pleasantly surprised by the results.
If you’ve ever applied for a business card as a sole proprietorship? What was your experience like? I’d love to hear about it!
