Chances of being approved for Amex BCP while self employed

[Credit4Growth]

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@Misfit88 wrote:

Thank you for the responses! Yes, I'm an AU on my wife's gold card and I have my own log in. I remember reading a few years back, that if you already have some type of relationship with Amex, it will be a little easier to get in with them. 

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For added conversion, I have not read much about having an existing with AmEx but it been recommended to be to have one.  So, if I can remeber correctly, about 8-9 months I opened a savings along with a certificate of deposit with them to begin a relationship.

Prior to the above,, I noticed they used to SP my reports several times each year and about 1.5 years ago I checked for personal pre-approvals which came back displaying the Amex Platinum with an elevated SUB.

- Just FYI

[W261w261]

Many people that are self-employed are working under an LLC.  Besides the asset protection, it helps I think with the IRS at tax time.  I personally have always said I'm an employee of my LLC. And I'm always the CFO, not the President or CEO.  Those titles are overused imo.

I think the credit world looks upon someone that has "a job" a little less critically.  Just my .02

[SuperFlyEDSguy]

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@W261w261 wrote:

Many people that are self-employed are working under an LLC.  Besides the asset protection, it helps I think with the IRS at tax time.  I personally have always said I'm an employee of my LLC. And I'm always the CFO, not the President or CEO.  Those titles are overused imo.

I think the credit world looks upon someone that has "a job" a little less critically.  Just my .02

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Bravo! 👏👏👏

As a retired accountant and CFO of an international corporation, this is some great advice! There's obviously a bit more to it, but this would definitely put somebody on the right track!

In short, in the vast majority of cases a creditor won't be looking under the microscope if everything seems to fall within averages and not be excessive. If they need a phone number, which they usually won't, simply have an associate answer the call and use their extension on the credit application. Always use a business phone number! They're cheap enough these days. Loans, LOCs, and credit cards with massive limits (e.g. $25K or more, maybe even less!) are a different story as they're far more difficult for a small business to obtain. Interestingly enough, corporations can usually obtain credit far easier than a LLC, but both shield the owner(s) from liability. Certain types of LLC elections, and corporations in general, offer (1) separating the owner(s) from the business' income tax (though not necessarily other taxes such as sales, franchise, and excise tax), and (2) limiting liability of the owner(s).

A couple other things to keep in mind is although certain types of entities will protect the owner(s) personally from any liability that falls on the business, this would only apply to any obligations that were taken on in good faith as fraud is always personally liable! It also is not an excuse to forgo insurance on your business as nearly any business could benefit from some kind of insurance, especially when dealing with the public.

Finally, the rules for LLCs and Corporations could be more than a little confusing, so always hire a solid tax professional! There are far too many caveats to consider. LLCs and Corporations are also chartered at the state level, though elected for income tax purposes with the IRS, this basically means every state does things a bit differently which is why a tax pro familiar with your state is so vital!

Oh, and one more thing: This is not tax advice.

Thanks! ✌️