As a startup owner, you may feel baffled at first when applying for a business credit card, knowing little about what to prepare. No worries! This article provides you with a breakdown of how to fill out the application form. Keep reading to save yourselves the time and hassle.
Legal name of your business
If the business is a corporation, LLC, or limited partnership, you shall provide the business name that you registered with your state government. If it’s a general partnership or sole proprietorship, you can enter your own legal name.
The phone number and mailing address of your business
You shall provide the authentic contact information. If you work from home, you can enter your home address.
Business entity or structure
The entity type shall be a corporation, partnership, LLC, government, nonprofit, or sole proprietorship. If you’re a freelancer, you can choose sole proprietorship.
Additionally, extra information will be required if your business is a registered corporation or partnership with beneficial owners (anyone else who own no less than 25% of your business). The information includes the name, birth date, home address, social security number and ownership percentage of the beneficial owners.
Industry type
You’ll be provided with a list of industries to pick from. Just select the one that applies to your business best.
Employer Identification Number (EIN)
EIN, or Federal Tax ID, is a nine-digit number assigned by the Internal Revenue Service to registered businesses. If you’re a freelancer without an EIN, you can enter your social security number.
Your role in the business, time in business, and the number of employees
In terms of your role, you can enter owner, president, general manager, etc. accordingly. Time in business refers to how long you’ve been in business. If you’re a startup owner, you can choose ‘0’. You also need to offer the number of your employees. Without any employee, you can enter ‘1’ for yourself.
Annual business revenue and Estimated Monthly Spend
You shall provide authentic information about these, which reflects your ability to handle monthly payments for the credit card. These are two important indicators for the card issuer to decide the size of your credit line.
Your total annual income
If your business is just founded, without the annual revenue to report, your total annual income will be required. Because it is also an essential indicator of your solvency. Besides, it is related to your debt-to-income ratio, which compares your debt payments to your income. Remember to add up all streams of income (income from full-time and part-time jobs, and business income).
Your personal details
Your personal information will be required, which includes:
- Legal name
- Birth date
- Social security number
- Household income
- Contact information: phone number, email, home address
At last, you don’t need to worry as long as you prove to be a responsible spender with funds to handle payments. Just put in your authentic information and wait for the approval. Wish you success in your new business!