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AMEX is reviewing Sole Prop accounts -just got the letter

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Re: AMEX is reviewing all Sole Prop accounts -just got the letter

Interesting that I find this thread. I just applied for Amex Blue Biz Cash and was approved. I was immediately told to call in to verify info about my business. When I called, I simply verified my name, dob, and last four of social along with my business organization type.

Now I see why this may have happened as a result of choosing sole proprietorship. My business is an LLC, but under federal law, LLC's are not recognized as separate entities for tax purposes, they are called pass through entities. So any profit or loss must be filed under your personal tax return on a Schedule C. Only if you choose to be taxed as a S- Corp or C-Corp can it be separated for tax purposes. Now that explains why Amex doesn't have that option under their pull down list for biz organizations, because you either file as a sole proprietorship or corporation. They may just want these to be clarified for their records for tax purposes as well.





Message 11 of 20
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Super Contributor

Re: AMEX is reviewing all Sole Prop accounts -just got the letter


@Emierja99 wrote:
Interesting that I find this thread. I just applied for Amex Blue Biz Cash and was approved. I was immediately told to call in to verify info about my business. When I called, I simply verified my name, dob, and last four of social along with my business organization type.

Now I see why this may have happened as a result of choosing sole proprietorship. My business is an LLC, but under federal law, LLC's are not recognized as separate entities for tax purposes, they are called pass through entities. So any profit or loss must be filed under your personal tax return on a Schedule C. Only if you choose to be taxed as a S- Corp or C-Corp can it be separated for tax purposes. Now that explains why Amex doesn't have that option under their pull down list for biz organizations, because you either file as a sole proprietorship or corporation. They may just want these to be clarified for their records for tax purposes as well.


 Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity"). In general a single member LLC owned by an individual will be a pass through entity. It is odd amex doesn't have an LLC option. I know Chase does in their app. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 12 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter

I have a couple sole prop amex business cards and have not receieved any letters. Seems highly doubtful Amex is sending out letters to all sole props. Maybe just to new account holders. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 13 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter


@red259 wrote:

@Emierja99 wrote:
Interesting that I find this thread. I just applied for Amex Blue Biz Cash and was approved. I was immediately told to call in to verify info about my business. When I called, I simply verified my name, dob, and last four of social along with my business organization type.

Now I see why this may have happened as a result of choosing sole proprietorship. My business is an LLC, but under federal law, LLC's are not recognized as separate entities for tax purposes, they are called pass through entities. So any profit or loss must be filed under your personal tax return on a Schedule C. Only if you choose to be taxed as a S- Corp or C-Corp can it be separated for tax purposes. Now that explains why Amex doesn't have that option under their pull down list for biz organizations, because you either file as a sole proprietorship or corporation. They may just want these to be clarified for their records for tax purposes as well.


 Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity"). In general a single member LLC owned by an individual will be a pass through entity. It is odd amex doesn't have an LLC option. I know Chase does in their app. 


They use to it has changed

Message 14 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter


@CreditCuriosity wrote:

@red259 wrote:

@Emierja99 wrote:
Interesting that I find this thread. I just applied for Amex Blue Biz Cash and was approved. I was immediately told to call in to verify info about my business. When I called, I simply verified my name, dob, and last four of social along with my business organization type.

Now I see why this may have happened as a result of choosing sole proprietorship. My business is an LLC, but under federal law, LLC's are not recognized as separate entities for tax purposes, they are called pass through entities. So any profit or loss must be filed under your personal tax return on a Schedule C. Only if you choose to be taxed as a S- Corp or C-Corp can it be separated for tax purposes. Now that explains why Amex doesn't have that option under their pull down list for biz organizations, because you either file as a sole proprietorship or corporation. They may just want these to be clarified for their records for tax purposes as well.


 Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity"). In general a single member LLC owned by an individual will be a pass through entity. It is odd amex doesn't have an LLC option. I know Chase does in their app. 


They use to it has changed


What has changed? The amex app? 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 15 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter


@red259 wrote:

@CreditCuriosity wrote:

@red259 wrote:

@Emierja99 wrote:
Interesting that I find this thread. I just applied for Amex Blue Biz Cash and was approved. I was immediately told to call in to verify info about my business. When I called, I simply verified my name, dob, and last four of social along with my business organization type.

Now I see why this may have happened as a result of choosing sole proprietorship. My business is an LLC, but under federal law, LLC's are not recognized as separate entities for tax purposes, they are called pass through entities. So any profit or loss must be filed under your personal tax return on a Schedule C. Only if you choose to be taxed as a S- Corp or C-Corp can it be separated for tax purposes. Now that explains why Amex doesn't have that option under their pull down list for biz organizations, because you either file as a sole proprietorship or corporation. They may just want these to be clarified for their records for tax purposes as well.


 Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity"). In general a single member LLC owned by an individual will be a pass through entity. It is odd amex doesn't have an LLC option. I know Chase does in their app. 


They use to it has changed


What has changed? The amex app? 


Yes the business app... Use to list more options than the current company structure, etc..

Message 16 of 20
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Valued Contributor

Re: AMEX is reviewing all Sole Prop accounts -just got the letter


You applied as SP but your EIN you used is LLC?

 

No wonder they are concerned.


I seldom get a full on laugh out loud from the net.  thank you

Message 17 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter

When I made this post, I was just repeating what the US rep told me on the phone that they were reviewing all acts. Obviously we can take what reps say with a grain of salt, but at the time of this post, thats what I was told.

Its possible its just newer SP acts, as they have changed their app process and have eliminated LLC as an option now to apply. I was just passing info along on my experience at the time it happened.

My rebuild worked for me, but won't necessarily work for you!
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Message 18 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter


@pizza1 wrote:
When I made this post, I was just repeating what the US rep told me on the phone that they were reviewing all acts. Obviously we can take what reps say with a grain of salt, but at the time of this post, thats what I was told.

Its possible its just newer SP acts, as they have changed their app process and have eliminated LLC as an option now to apply. I was just passing info along on my experience at the time it happened.

Thanks , as a small business owner (LLC), I appreciated the heads-up!

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Message 19 of 20
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Re: AMEX is reviewing all Sole Prop accounts -just got the letter


@pizza1 wrote:
When I made this post, I was just repeating what the US rep told me on the phone that they were reviewing all acts. Obviously we can take what reps say with a grain of salt, but at the time of this post, thats what I was told.


@pizza1 wrote:
When I made this post, I was just repeating what the US rep told me on the phone that they were reviewing all acts. Obviously we can take what reps say with a grain of salt, but at the time of this post, thats what I was told.

Its possible its just newer SP acts, as they have changed their app process and have eliminated LLC as an option now to apply. I was just passing info along on my experience at the time it happened.

Yea since we haven't seen any other datapoints of this yet i'm skeptical that the rep has any idea what they are talking about. I opened a sole prop business card less than 30 days ago and haven't had any issues. It would not be unusual at all for a lender to ask follow-up questions on a totally new business without an credit history, but that is just routine stuff.

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 20 of 20
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