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I had recently opened a new business, but I was not sure how to file for expense deductions for taxes. Do I bring my credit card bills? Or how would I present my expenses to my accountant?
Lets say I hired a graphic designer, but he bills me on paypal.. . how would i get that deducted?

What exactly do I have to bring with me?

Credit card records do not provide enough details, since that only shows where you spend money, not what you spent it on. So as mentioned you should have actual invoices or receipts for any business expenses.

And if you pay anyone over $600 for contract work, you should either get a W-9 from them or deduct default withholding from payment, and file a 1099 for them with the IRS.

I am seeking a job with a fortune 500 company that requires the employee to obtain a company issued AMEX business credit card for extensive travel. The card is issued to the employee and therefore linked to their personal credit. The balance on the card is paid by the company after the employee submits an approved expense report. Presently, my median credit score is 655. Can I be approved for a company issued AMEX business credit card with this score and if not, what is the minimum score needed to obtain approval?

No one can definitely answer you other than American Express, but my guess would be that you would not qualify if the credit is being granted under your own merit. American Express has greatly scaled back on issuing AMEX business cards and has lowered credit limits on thousands of their customers. I recently saw on another forum where a man with an 830 FICO got an American Express card with only a $6000 spending limit.

American Express not only looks at your FICO score, but your debt to income ratio when making credit decisions. If someone has a few credit cards even if they are not using them then they have the ability to charge and carry a balance. All of these things are taken into consideration when and if a person gets approved for an Amex card.

My business is really small and sort of new (2 years) I just don’t know how to start a credit score for it. My personal credit is not perfect. I have applied for some business credit cards but I just can’t be approved. Please advice how this works for new small business

Unfortunately, as a small business person, a bank or credit card company will ask you to guarantee the debt for the company. If your personal credit isn’t good, either, it presents an almost insurmountable problem. Only suggestion I have is to get a secured credit card from your bank, in the business name. Even $500 or $1000 is a good start if you can afford it. Then, charge a few hundred every month and pay it off. Hope this helps you

Hi, I am about to start a small business and was wondering if I would be able to get a business credit card. Would a bank approve a credit card for a small business that does not have any credit history and if so what would the limit on the card be? My personal credit score is 720 and my business partners is around 690 if that makes a difference. Thanks

If you are running a business as a company then they will not give you a card based on your score. If your business has a bank account the bank may give you a credit card based on your balance and activity. You need to go to your bank first and sell them the idea of your business, have a business plan and some market research to show you have thought this through, then you might get lucky.

I just recently started my own small business after watching my boss make tons of money off of my idea. I’ve been trying to obtain business credit but I am having a problem, because I am a new business. I do not want to use myself as a personal guarantor due to some credit issues I have gained while in college, and co-signing for my ex. So if you have any tips please feel free to post them. Thanks for your time.

Most business credit cards will require a personal guarantee, even for large, well established companies.

If you are looking for other types of business credit, like a line of credit at the bank, you will need a whole lot of documentation on your business and if it’s new, you will probably still need your personal guarantee.

You can work at setting up credit with vendors and suppliers. Those that carry their own accounts will usually give you some kind of terms after the first pay on delivery order. You can also list your company with D&B but that will require financial documents.

I started a small business 6 months ago that has been very successful. I have a business bank account, but have not done anything else to establish credit for the business.

I would like to lease a vehicle in the name of my small business and am curious if my business credit score would be too low?

Does anyone know a general guideline on how quickly a line of credit is established for a small business?

Dun and Bradstreet has a service that monitors small businesses. You can look into having them evaluate your business. However, in almost all cases, you will be using your personal credit to secure funding or credit for your small business. I’ve owned a small business for 15 years and every bank account, credit card, auto lease, etc. I have ever acquired I did using my personal information and credit score.

Vendor lines of credit serve two important roles for businesses seeking capital. They first give a business access to products and services based on “net terms” ranging from 15 to 60 days. Secondly, vendor lines of credit can help businesses build their credit scores. In order to build a solid foundation for business credit, businesses must have one bank loan, three business credit cards, and five vendor lines of credit established to build proper business credit.

Another benefit of vendor lines of credit is that they are a lot easier to obtain, than a conventional business loan. Most vendor lines of credit are not secured because collateral is not required to obtain the line of credit. Credit lines are available for all products and services imaginable including office equipment, computers, and even gas for company vehicles. There are more than 500,000 businesses that offer credit lines to other businesses. Out of these though, only 6,000 report your payment history. This means that approximately 1.2% of all of the vendor lines of credit available actually help you build your business credit scores. It goes one step further, and out of the 6,000 that report to the credit agencies roughly 1,000 will allow you to obtain the vendor credit line without using your personal credit history.

You are probably wondering what is so special about business credit scores, and why is it so important to build them up. Many business owners and other entrepreneurs don’t realize that business credit works exactly like personal credit. Without personal credit you can’t purchase a car or house. You have to have a history of paying on your open accounts in a timely manner. The same principal needs to be applied to your business that you would apply to your personal credit. You also want to separate your personal credit from your business credit. This is essential for anyone that wants to properly establish and grow business credit.

If you have vendor lines of credit open with the other 98.8% of businesses out there you will only gain the credit given to you. This does you no good for the future because you aren’t building your credit score while you are using that vendor credit line. The most efficient way to build your business credit history is to have credit accounts open with companies that will report your payment history. This will help you get closer to your goal of being able to borrow the money you need to really grow your business. You have to remember to build your credit first, and then attempt to get the large business loan you desire.

Another benefit of always ensuring that you build your business credit is that after your initial launch you will have the credit backing you to obtain more money for rapid expansion. You can grow your business quicker than your competition with the access to the cash you need. This creates an ease of mind for the business owner and the business itself.

Just knowing the importance of building your business credit using such things as vendor lines of credit won’t be enough on it’s own to get you the capital you want. There are many other aspects to obtaining financing. If you follow all of the steps you will be in a position to get the capital you need and deserve.

Corey Pierce
http://www.articlesbase.com/non-fiction-articles/vendor-credit-lines-are-essential-to-any-business-seeking-financing-54145.html

Magic Johnson, Steve Wynn, and Google’s CEO, Eric Schmidt — between them, they’re worth billions and we’re not. What do they know that can help us?–From Larry King Live

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As a new business owner or an emerging entrepreneur, the last thing you want is for your bank to refuse you a business credit card. However, these things do happen and, before you try again or apply elsewhere, the most important thing to do is to try and work out why it happened. Once you have ascertained the reason behind the bank’s decision, you can then take steps to make sure it doesn’t happen again.

Firstly, it may be worth considering the seemingly simple things; many a business has had their application for a business credit card refused on the grounds of inaccurate information. This most commonly happens on the application form and, in some respects is something we should be grateful for: if someone is trying to get a credit card in your name and the information supplied leads the bank to suspect that this is the case, then you would be delighted that their application has been uncovered and refused. Because of the rise of card fraud and identity theft, card providers have to be pretty strident in their appraisal of applications. It is worth checking and double-checking the data you submit on your form as even the most seemingly insignificant mistake can slow down or negate a business credit card application.

You might also want to reconsider the type and amount of credit you originally asked for. What might seem reasonable to you might seem outlandish to others, so it is wise to ask yourself how the business credit card will be used, what for and who by. Calculations based on your company’s turnover on a monthly basis will give you a clearer idea of just what level and type of credit your company actually needs.

If you have never applied for a business credit card before, the lender’s refusal of a card may also have something to do with your personal credit history; without any other reference point on which to base their decision, banks will use your personal credit score as their yardstick. If your credit rating is good, you will be offered more types of credit. If your score is negative, the reverse is true. Researching your credit score is a prudent move; you may have been the victim of erroneous information and can have that corrected. Alternatively, you may have experienced negative credit habits in the past, but there are steps you can take to improve your credit score, such as paying-off outstanding debts. Your credit score is a rating that reflects your spending and credit habits, when compared with the same habits as the rest of the population. It gives lenders a rough idea of the risk involved in lending you money. There are three main credit agencies compiling this data: Experian, Hyperion and Equifax. You can apply for a detailed copy of your credit rating either by post or online, for a nominal fee. As we know, your application for a card is tied in with your personal credit score and it may have something to do with your bank declining your application.

Do remember that you don’t have to be loyal to your personal bank; shopping around can provide you with many benefits and other institutions may be more amenable. Banks are not the sole issuers of business credit cards these days; supermarkets and building societies can also offer them and may take a different view of any negative status you have incurred. Finally, it is worth considering that a bank does not want to lose your custom. Contacting your credit card provider and asking why the application was refused can put a better light on your situation and allow you to prepare to do it again, successfully.

Hannah Callen
http://www.articlesbase.com/finance-articles/help-my-bank-wont-issue-my-new-business-a-credit-card-686792.html

What’s the best way to establish credit for a newly formed business entity (LLC or corporation), even before it’s actually conducting business, to avoid having to personally guarantee a (SBA) loan, and to be able to open (vendor) accounts?

First you have to establish your business legally with your federal, state, county/local governments. Here a basic steps that may help.

- Secure a small line of credit with secured assets.
- Establish a supply base and make small purchases.
- Lastly contact one (or all) of the business credit agencies to establish a credit file.

This process may take 3-4 months. This is the least costly approach with an above average personal credit score.

Please know that I am not a proponent of using credit cards to fund a business, however, if the credit is for inventory where there is more than a likelihood that the inventory that you are acquiring will be sold and paid for within 60 days there is an avenue open to you.

Go to American Express – Plum and apply for an American Express Plum Card. Using the card judiciously will give you the option of paying two ways.

1. pay in full within 10 days of bill closing and receive up to a 2% discount
2. pay 10% when the bill is due and defer the balance for up to 60 days.

Yes, there is liability to the card holder (principal), however this does give you access to a great deal of funding within a safe environment for initial inventory purchases and is a great cash management tool.

When you have your business up and running, how will you determine the credit-worthiness of your potential customers? or more directly, why would you want to do business with your own company? Putting yourself in the shoes of your vendors will help answer your question.

Many local vendors will extend a small amount of credit if they know you. Alternatively, you can prepay vendors to develop a history of being able to pay for what you order. After a number of prepaid orders, they may be willing to sell to you on credit.

When setting up your banking accounts, you should be able to obtain a debit card. Use it as a credit card until you can qualify for a true credit card.

When you have assets (inventory or receivables), you can leverage them for cash when needed.

Hopefully you have a business plan and have developed some financial analysis and projections so you know your break even points, and how much inventory you have to have on hand to re-pay debt, and start building equity.

Michael Lemm
http://www.articlesbase.com/small-business-articles/whats-the-best-way-to-establish-credit-for-a-newly-formed-small-business-672705.html