PDA

View Full Version : Credit card - to buy expenses


justin_time
03-12-2011, 08:07 PM
I was told by my bookkeeper I need to get myself a credit card for business purpose only since I'm not suppose to use my personal credit card for business purposes.

Is there a specific business credit card that someone prefers ?

Let me know

950thomas
03-12-2011, 08:36 PM
I use American express they have good rewards points

justin_time
03-12-2011, 10:03 PM
I use American express they have good rewards points

Most of the retailers here in Canada don't accept it, but it's mostly Visa or Mastercard.

950thomas
03-12-2011, 10:40 PM
you're better off if you just set up accounts with vendors typically less interest

Liberty Landscaping LLC
03-12-2011, 10:42 PM
I use a bank account with a Visa Logo Atm card. I don't like credit. I also have accounts with my vendors. It saves you a little bit most of the time too!

justin_time
03-12-2011, 11:34 PM
you're better off if you just set up accounts with vendors typically less interest

I do to most of them, but when you live in a small town, it's harder to do

bruces
03-13-2011, 09:07 PM
I figured you were still trading beaver pelts for bullets and traps in your neck of the woods Justin,except at the Beausejoir of course !Alban,Oullete and Noelville dont even have a stop sign let alone a traffic light or indoor plumbing, you will be the talk of the town and a shoe-in for mayor when you get a credit card .

Steve
03-14-2011, 03:56 AM
Justin,

You could get another card even if it is a personal card and only use that one for business expenses. That way it would keep your accounts separate and easily allow you to see which expenses were personal and which were business.

justin_time
03-14-2011, 01:35 PM
I figured you were still trading beaver pelts for bullets and traps in your neck of the woods Justin,except at the Beausejoir of course !Alban,Oullete and Noelville dont even have a stop sign let alone a traffic light or indoor plumbing, you will be the talk of the town and a shoe-in for mayor when you get a credit card .

Hahahahaha

justin_time
03-14-2011, 01:37 PM
Justin,

You could get another card even if it is a personal card and only use that one for business expenses. That way it would keep your accounts separate and easily allow you to see which expenses were personal and which were business.

I just applied for a $5000 limit business credit card from CIBC, suppose to get an answer 2-3 weeks from now in the mail. Will see where this goes. If not, i'm going to get myself another credit card under my name and just reconcile my transactions with that card

picframer
03-14-2011, 01:55 PM
Justin,

You could get another card even if it is a personal card and only use that one for business expenses. That way it would keep your accounts separate and easily allow you to see which expenses were personal and which were business.

CCRA ( the Canadian IRS) will nail you to the wall for using a credit card for business expenses when the credit card is not in the company name, been this way for at least 15 years.

I personally use Scotiabank as all my dealings are there, no interest as the card is paid off at the end of the month.

Probably should have a points card, Presidents Choice Master Card is one of the best, free groceries. I have one in my own name that the kids use also, some months we rack up over $150 in free groceries.

Hedgemaster
03-14-2011, 09:57 PM
Scrreeeeeeeeeeeccchhh!!!

Damn. THAT post brought me to a halt.

IMPORTANT! NEED CLARIFICATION!

I applied for/was approved/received a credit card with a 15 month 0% interest offer. I picked it up SPECIFICALLY for the purchase of a new push mower and other business related items including advertising...

I did this thinking along the lines of what Steve posted - this card will ONLY be used for business items, even though it is not in my business name. I did this to make it easy to keep things "separated". 0% interest is the only way I'm going to be able to buy these items - I can't be paying high interest on a card that's in my business name. (I do not have a card in my bus. name yet, btw)


For TAX PURPOSES, CAN I USE MY PERSONAL CREDIT CARD to purchase business related items? Will that cause any tax/deduction "issues"?

I've not dealt with the "tax" stuff yet, and I was READY TO BUY THE MOWER TOMORROW, so if anyone can clarify, I'd be grateful! I can't afford to screw myself over here.

THANKS!

jymie
03-14-2011, 11:01 PM
Here in the US I have a debit card attached to the business account. No interest to ever worry about.

bruces
03-14-2011, 11:03 PM
Hedgemaster ,you really need to talk to an accountant,bookeeper ,or a tax man from your area as thats probably a question for a tax pro .Essentially ,up here in Canada anyway ,your personal and business finances have to be seperate .

The Cleaning Doctor
03-14-2011, 11:24 PM
It is the same here in the US. If you use a card that is in your name it is not so much the tax implications as the piercing of the corporate veil.

In other words if you use a personal card for business, then you and the business are not separate entities and if there happened to be an accident where there was a large award, they could come after your personal assets like your home, cars, furniture etc. It also does not matter if the accident happens 15 years from now.

If you have an LLC, C corp or S Corp you MUST keep all finances separate to protect yourself from this possibility.

There are also ways you can protect your equipment but that is for another discussion and not it is not insurance.LOL

justin_time
03-14-2011, 11:42 PM
Scrreeeeeeeeeeeccchhh!!!

Damn. THAT post brought me to a halt.

IMPORTANT! NEED CLARIFICATION!

I applied for/was approved/received a credit card with a 15 month 0% interest offer. I picked it up SPECIFICALLY for the purchase of a new push mower and other business related items including advertising...

I did this thinking along the lines of what Steve posted - this card will ONLY be used for business items, even though it is not in my business name. I did this to make it easy to keep things "separated". 0% interest is the only way I'm going to be able to buy these items - I can't be paying high interest on a card that's in my business name. (I do not have a card in my bus. name yet, btw)


For TAX PURPOSES, CAN I USE MY PERSONAL CREDIT CARD to purchase business related items? Will that cause any tax/deduction "issues"?

I've not dealt with the "tax" stuff yet, and I was READY TO BUY THE MOWER TOMORROW, so if anyone can clarify, I'd be grateful! I can't afford to screw myself over here.

THANKS!

This is the reason I started this thread/post LOL

Hedgemaster
03-14-2011, 11:43 PM
Hang on a second...

"Company" vs "business" - is there a legal difference? I thought there was.
Many people seem to use the two words interchangeably, which can cause confusion.


I am not a "company". I'm not an LLC, C corp, or S Corp - I'm a SOLE PROPRIETORSHIP.

Does that help for my "credit card situation?

justin_time
03-14-2011, 11:47 PM
Hang on a second...

"Company" vs "business" - is there a legal difference? I thought there was.
Many people seem to use the two words interchangeably, which can cause confusion.


I am not a "company". I'm not an LLC, C corp, or S Corp - I'm a SOLE PROPRIETORSHIP.

Does that help for my "credit card situation?

I was told that you can get another credit card even if it's under your name, but you need to reconcile all transactions on that card that is affixed to business accounts into your books

Hope this answers your question (i'm also a Sole Proprietorship)

WilliamsLawn
03-15-2011, 12:25 AM
If you are sole pro you can still use your personal card to make purchases, but use a very good accounting method to keep track of all business expenses for tax time. The benefits of LLC, or Incorporation is that if someone sues they can only go after your business not personal assets. The down side to Incorporation or LLC is that business generated revenue can not be used for personal purchases. If you go this route you will have to decide what the business will pay you each week. Now the other downside is that you have to file personal income tax and you also have to file income tax on business and business profits. Most will pay taxes in quarterly on any of the corporation types.

Yes Company is relegated to incorporated endeavors while business is relegated to sole prop. (Mike SOnSO DBA as Mike's Lawn Care)