More small businesses are beginning to utilize business credit cards as a way to earn rewards in key spending categories, like office supplies and telecommunication services. Business credit cards are also useful to distribute to employees with set spending limits that can earn even more rewards for the company. Lewis Sheats, assistant vice provost for entrepreneurship and executive director of the NC State Entrepreneurship Clinic, provided expert insight on the importance of business credit cards and why they are more beneficial than personal cards.
“If small business owners comix personal funds with business funds, they risk the potential of creating a personal liability by piercing the corporate vale,” said Sheats. “If this occurs, the reason for creating an LLC or Corp to create a barrier of liability may be erased. It is also just good accounting practice to separate entities and the sources of funds.” Read more on WalletHub.