1 year, 8 months ago
How can one establish credit with a home business?
My brother's wife has started a home business that seems to be going well. She wants to establish credit with the business, so she can keep it separate from her personal credit. She asked for my help, but I am not sure what direction to point her in. Where can she start?
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M$1 Answer
She should apply for a credit card strictly to be used for her business. This card can be used for purchases such as gas, supplies, food, and anything else related to the business and not to her home life. As long as she can pay the balance (hopefully with earnings from the business itself), she will be able to establish credit for her business.
An added advantage to this is that many of the purchases may be eligible for tax deductions depending on how the business is organized and the laws that apply to where she lives. She can set aside a part of her home as a business, and possibly use the car as a business expense. Check the state laws for more information.
An added advantage to this is that many of the purchases may be eligible for tax deductions depending on how the business is organized and the laws that apply to where she lives. She can set aside a part of her home as a business, and possibly use the car as a business expense. Check the state laws for more information.
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