Just finished incorporating and looking to set up proper banking/credit cards. Had a few questions

by pursuingmaterialism. Posted on Sep 09, 2020    1    4


  1. Business is pre revenue and I understand that's part of the application. Should I wait till I have revenue before applying or can I go ahead an apply now. Reasoning is business would make use of ad spend which the card I would get would have solid points redemptions
  2. I'm assuming I need to/should setup a seperate business checkings to associate with the new card rather than having it be linked to my personal account. Is this correct?

Comments

squiggee 1

Credit is great for new businesses as you can have a welcome period of 0% interest for 7-12 months. But it will need your credit to be pretty high to get the approval.
I agree with others that you should ALWAYS keep personal and business money separate. Also keep taxes separate throughout the months/quarter/year that way you don’t scramble come tax payments.

Ambitious_Tree8049 3

In regards to question 2 yes!! Always always keep your money separate. A business account only for business expenses and personal account for personal spending. Most companies fail because they get lazy with finances. Don’t mix your money. Ever!

And with credit. Be careful. Credit is a trap and you don’t always need it. Make sure you put away as much of your money as you can afford for a rainy day.

Also in my experience banks won’t lend anything to a company that is brand new. You need history before they will lend you money. And it is always linked to the principles credit so make sure yours is good.

ApolloDionysus 2

\> Always always keep your money separate. A business account only for business expenses and personal account for personal spending. Most companies fail because they get lazy with finances. Don’t mix your money. Ever!

Great advice. Business income and expenses should always be kept separate. Discuss this with your CPA and make sure you have your financial house in order.