Closed Business, Closed Card?

[ToxikPH]

I'm closing my sole prop as it's making a total loss. I have an American Express BBP card and would think to close it along with the business. My only problem is I got the card in March 2019 so it is less than a year old. I didn't get any signup bonus with this card but I am worried if I close before a year I will be barred from getting other Amex bonuses in the future. What would happen if I closed this card now?

[Anonymous]

Is there a blance? If so can you PIF? IMO keep it open and just use it occasionally to put some spend on it. Then after it reaches 12 months close it, or keep it open to use regularly. 

I don't see a need to close it just because current business is folding. Unless you plan to write off the Debt. and it is carrying BIZ debt.

[ToxikPH]

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@Anonymous wrote:

Is there a blance? If so can you PIF? IMO keep it open and just use it occasionally to put some spend on it. Then after it reaches 12 months close it, or keep it open to use regularly. 

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There is only a $35 balance so easily paid off. I just don't like the idea of personal spend on a business card and that's a risk I don't like to take. I just think that closing my BBP and opening an ED card would benefit me more as it would be personal. 

[Anonymous]

What exactly would the risk be? I don't write off any expenses like most people typically would do, so it doesn't bother me to comingle.

I pay cell phone utilties etc. as well as gas and sometimes dinner and lunch. 

Though I don't shop at places like Target or Walmart with it, or for stuff that might not be considered business use. 

That said, if you don't like the idea that's totally your call. Just was curious is all.

[ToxikPH]

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@Anonymous wrote:

What exactly would the risk be? I don't write off any expenses like most people typically would do, so it doesn't bother me to comingle.

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It's a very very small risk and it's the idea that Amex one day decides they don't like personal spend on business cards like Chase. Amex is my main set so I don't want to lose those cards in the event they decide to shut down for that reason.

[bourgogne]

assuming you have an ein tied to the business there is no way to cancel it, so you might be closing up shop but the entity will always stay alive to some extent.  imo amex or chase could care less of what type of spend happens on the cards as long as you are in good standing.  that said if one values a certain relationship with a lender then one might tread more carefully in certain situations.  I would not flaunt it, putting grocery spend on a biz card and not having a catering business, etc.  as far as he ed goes I cannot think of a more wasted hp that getting $120/year for grocery spend.  I have a $30K one and i never use it, a better choice would be a blue cash or preferred and pocket the cash.  again just my .02

[GApeachy]

ETA:   CAll Them and ask Original ?

(From Amex website)  3. Close your business’s federal and state tax accounts. Just because your business isn’t bringing in any revenue anymore, it doesn’t mean you’re automatically off the hook with the IRS. You’ll need to notify the IRS that your business is no longer operating by closing your Employer Identification Number (EIN). You’ll also need to file your final federal and state tax returns (check the box indicating that this will be the final return). And if applicable, your company’s payroll withholding taxes must be up to date. Members or owners can be held personally liable if the business’s payroll taxes aren’t paid.