Small business credit cards are, essentially, no different than consumer cards, in that proprietors are liable for all incurred debt, as opposed to the organization as whole and whatever DBA filing it has registered.
For that reason, the subject of small business credit cards has remained a much-debated subject. The CARD Act of 2009 sought to lessen the burden of hidden fees, sudden interest rate hikes and other expenses to consumers. However, those regulations were not necessarily extended to small businesses.
For that reason, CardHub.com conducted a study evaluating the country's largest credit card issuers to find out if they have extended CARD Act protections to small businesses.
The winner? Bank of America. The company is the only one studied that extends 100 percent of CARD Act protections to small businesses. Wells Fargo, HSBC and U.S. Bank, meanwhile, all received very poor scores.
"Until more issuers decide to truly step up and improve their business credit card offerings significantly, Bank of America will gain a dominant position among well-informed small business owners who want to use a credit card to fund their companies," the report reads.
Even as other firms like American Express are moving to improve their level of offered protection, entrepreneurs forming an LLC in New York, may want to take a look at the study.
Tags : financial management, incorporation, incorporation news, ny, small business management
Posted: May 9th, 2011