Agree with everything you said besides the comment I quoted. Credit inquiries are a temporary minor hit on your credit report. There isn't a long-term consequence on them. I wouldn't consider them "black marks".

State systems vary. In my experience it's dollar one. In an LLC you pay taxes only when you start paying yourself or employees. If you're paying expenses only from corporate funds, no worries.

You're right, of course. I was referring to the kid's cumulative debt / interest hit... carrying balances and paying usury rates on multi cards while still in school, with no visible means of support. That kind of pattern, coupled with regular applications for more credit, will catch up with a gal (or guy). Sorry, a little OT for this thread.

Don't Use Only EIN
 

The EIN you can easily get from IRS will have no credit bureau record. Not good.

Only use it if the app also asks for your SSN.

I am a sole proprietor and don't have a dba. I just use my name and my SSN. I put my business income on Schedule C when I file my income taxes. The only business card I applied for was a SPG Amex. The card came with my name listed twice, as both the business and my name are the same.

Have you registered with the State to pay State sales tax and the medicare and Social sec tax for Feds?

Exactly. You are doing business in your own name. The point to this thread is that there is a lot more to all of this than simply applying for a credit card. All depends on the type of business, where one is doing business, the tax implications and liability (LLC vs. sole prop).

Yes, I pay all state and federal taxes. I keep all of my business-related work separate and rent office space. I have 3 private clients and don't need to advertise for outside work.

Are there some additional regulations/taxes if you advertise for outside work?

No. The reason I don't have a DBA is because I don't need some fancy company name to advertise for new business. It just simplifies things in my situation.

For some years I did a little consulting as a sideline and just reported the income on Schedule C, with no business apparatus attached, but when I jumped in full-time I formed an LLC, got a DUNS number, and everything. I want a moat between business activity and household income.

If you are attempting to set up a business to qualify for a business credit card, then there are some useful (and not useful) posts above. If you are looking at setting up a business I would immediately stop reading this thread and start reading through the documentation and if its complicated, talk to a lawyer.

The paperwork is fairly easy but depending on what your business does and local tax laws, the answer is not always the same. Some states have asset taxes or annual fees, some places don't have enough case law to make an LLC worth your time, or the corporate veil will be so easy to pierce that you would just be wasting your time.

For what its worth, I've had S-Corps in two states and operated one while a resident of another state, so I have some clue what I'm talking about. I filled out all my paperwork etc, but I took my advice on the corporate structure from an attorney, and it saved me a bunch of money. If you go to the IRS and the state website you can find everything you need to know. Also, don't be afraid to call the IRS, they're very helpful.

Some on this thread are hinting that it's illegal (or at least unethical) to apply for a business CC without actually having a business. I got the SPG business card back during the 30k promotion, just using my full name as the business name. Since it is YOUR faith and credit that the CC company relies upon in issuing the card, it doesn't seem that the issuer would care too much if you are an actual business. And if prodded, couldn't you just be honest and say that you are a sole proprietorship (which is indistinguishable from a natural person tax-wise) with no employees, operations, or revenues?

Which would make you a business in what way?

I would guess it's not illegal, but I would think you'd need to read all the fine print on the application to see whether it's fraudulent.

Unethical? In the context of credit cards? As long as you pay what you owe in a timely manner, I think you meet all the standards of ethics for credit cards. It's not like credit card issuers are the most ethical people out there. Usury, one-sided contracts, punitive fees, etc...

Good heavens, there seems to be a lot of focus on paying taxes where there are no taxes to be paid.

Sales tax is collected on, and transmitted to the state for, certain qualified sales transactions. Many businesses, including service businesses, have no qualified transactions.

Medicare and social security taxes are paid on the wages of employees.

Neither of those things are required merely by the act of obtaining an EIN, or Employer Identification Number. An EIN is also called a Federal Tax ID Number, or FTIN. You don't have to be an employer (despite the term "employer" in "EIN").

If you want to fill out the form, print it, and mail it in, go here: http://www.irs.gov/pub/irs-pdf/fss4.pdf

If you want to fill it out online in an interview-style format and receive your number immediately upon completion, go here (although you may want to print the other one and fill it out so you have an idea of the questions): http://www.irs.gov/businesses/small/...102767,00.html

Cali