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04-07-2009, 04:39 PM
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Real Estate Agent
Status:
"There's No Place Like Home"
(set 4 days ago)
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Join Date: Sep 2006
Location: Knoxville, Tennessee
10,409 posts, read 7,463,669 times
Reputation: 3144
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Starting business-Can I get a credit card?
We are about to open an auto repair shop. Will we be able to get a credit card or do we need to establish the business first? I saw an application for a tool shop that wanted a guarantor. I assume that would be me, but it wants income and I don't have any yet.
I have things that I need to purchase for the business. I would love to throw them on a business credit card. If I use a personal one, can I still deduct the items if I use a personal credit card if I prove that they were used in the business?
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04-07-2009, 05:24 PM
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Senior Member
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Join Date: Oct 2006
2,003 posts, read 1,265,697 times
Reputation: 456
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Yes you can still deduct the items.
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04-07-2009, 05:58 PM
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Senior Member
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Join Date: Jan 2007
3,105 posts, read 3,444,871 times
Reputation: 1615
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The tax breaks to the business aren't dependent upon how you paid for the items ... cash, check, or your personal funds.
What you'll need is a good accountant to keep stuff straight as to how capital investment in the business was obained, and give you advice on the benefits of purchasing vs leasing (on some of your larger equipment expenses).
From what I've seen, there's a lot of credit card outfits looking for clients, especially in the business sector. My bet is you'll get an unsolicited credit card app ... or several dozen ... in the mail as soon as your business sales tax license is on file and you've got a mailing address for the place. With the financials you'll have for them at this time, they may not give you a large line of credit ... but it should be enough for many small purchases, and worthwhile to use for parts & supplies, especially if there's "points" to be exchanged in due course. It's a lot easier than trying to get an open account at many suppliers, and you get the flyer miles or other benefits for doing the same volume of business with your suppliers. Just be sure to watch the cash flow so you're not winding up with an interest expense that takes away from your cash flow.
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04-07-2009, 06:49 PM
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Real Estate Agent
Status:
"There's No Place Like Home"
(set 4 days ago)
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Join Date: Sep 2006
Location: Knoxville, Tennessee
10,409 posts, read 7,463,669 times
Reputation: 3144
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Wow! Great answers! I really appreciate it. I'm sure I'm going to have a lot more questions. Fabulous.  |
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04-07-2009, 10:42 PM
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Senior Member
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Join Date: Nov 2008
Location: DFW Texas
104 posts, read 58,516 times
Reputation: 31
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I agree, Good CPA, he will adjust how to write things off and if it would be better to write it all off your do a little each year.
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