We hear the question all the time: “How can I get a business credit card with no personal guarantee?” People want to avoid bringing their work home with them, not only mentally and emotionally but financially as well. They want their business spending to be their business spending and not be in any way connected to their personal finances. That way their family’s financial well being will not be at risk should their venture fail, as so many small businesses unfortunately do. However, unless you own a large company, there is no escaping personal liability for business spending. No matter how you finance your purchases—be it with a business credit card, a personal credit card, or even a loan—both you and your company will ultimately be held responsible for any misuse or inability to make payments.
It’s merely a common myth that business credit cards provide personal liability protection by limiting responsibility for debt and default to one’s business. The falsity of such a belief is evidenced by the fact that business credit card applications require you to provide your Social Security Number (SSN) in addition to your company’s Federal Tax Identification Number, or Employment Identification Number (EIN). Additionally, most business credit card applications clearly disclose liability policies. Take, for example, the Ink Cash Business Card from Chase. Within the “Pricing and Terms” section on its application is the following passage:
