Should Gig Workers Get a Business Credit Card?

There's a common misconception that in order to apply for a business credit card, you need to own an actual business that has a corporate structure like an LLC or an S-Corp, with an employer identification number (EIN) and employees.

This is 100% false. Anyone who earns money that doesn't come from an employer-employee relationship is eligible for a business credit card. This includes freelance workers, and gig workers. You don't need any specific business structure, and you don't need an EIN. When applying, you'll need to provide some information about what you do and how much you make from self-employment income, but for the most part, the process of applying for a business credit card as a gig worker isn't much different than applying for a personal credit card.

Why should gig workers consider a business credit card?

There are a few good reasons why you might want to get a business credit card if you make money from freelancing or gig work.

Separation of expenses

One of the biggest benefits of having a business credit card is keeping your expenses separate. This can be a big help when it comes time to calculate your self-employment income for tax purposes. For example, if you're a ride-hailing driver, using a business credit card for gas, tolls, and other expenses could help determine how much of the income you receive is taxable.

To be clear, you legally don't have to use a business credit card for only business expenses. But doing so might be a violation of your cardholder agreement.

Manage cash flow

Many people with self-employment income have to pay certain business expenses before they get paid. Using the ride-hailing example, you need to fill your car's gas tank up before you can offer rides. If you plan to be a freelance writer, you might need to buy a new laptop for work before you start making money.

A business credit card can allow you to pay for these things without having to dip into your checking or savings account, and then pay the balance off. This is especially true if you have a business credit card with a 0% intro APR.

Rewards for necessary spending

Business credit cards can allow you to earn cash back and travel rewards for purchases you would have made anyway.

For example, the Costco Anywhere Visa® Business Card by Citi has no annual fee and offers a stellar 4% rewards rate on gas purchases (up to $7,000 in spending per year), and also offers 3% back on travel and restaurant spending.

Business-focused credit card perks

Most credit cards, both business and personal, offer some cardholder perks, and this is especially true for cards that have an annual fee. However, some business cards offer perks especially designed to add value for self-employed individuals.

As one example, the Ink Business Preferred® Credit Card from Chase has a $95 annual fee, but offers 3 rewards points per $1 spent on business-focused categories like travel, shipping, advertising, and internet service.

Should you get a business credit card?

In a nutshell, there are some good reasons why you might want to get a separate small business credit card if you are a gig worker. It can make tax time much easier, and can give you some excellent rewards and perks for purchases you were going to make anyway. If you're curious about what the options are, check out our list of the top business credit cards to see if one might be a good fit for you.