Shirtsy Review: A Business Swag Offer with Net 30 Option

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Shirtsy

In today’s competitive business landscape, a strong brand identity is paramount to stand out from the crowd. An effective way to showcase your company’s image and values is through custom apparel and swag. Shirtsy, a popular business t-shirt club, offers a wide range of high-quality print-on-demand t-shirts that can elevate your brand and leave a lasting impression. 

The reason I take an interest is because of the net 30 offer, which is a key element in building a strong business credit profile. 

In this full review, I’ll delve into Shirtsy’s full print-on-demand offer (the range of products, available designs, customization options, and dropshipping offer) and explore my favorite parts of the offer (net 30 accounts, credit reporting, and credit bureaus). 

But, is this the best offer for your business, or can you find one that’s better suited? 

This is what’s in store: 

Now, let’s get the ball rolling! 

Meet Shirtsy — The Business T-Shirt Club That Can Help You Build Business Credit

Shirtsy offers a wide range of print-on-demand products for businesses to build their brand. From apparel like hoodies, shirts, and activewear for both men and women to home items like candles and wall art, Shirtsy has customizable options to suit various needs. 

They also provide promotional items like magnets and postcards, as well as specialized merchandise for restaurants and professionals (i.e. chefs and skateboarders). With their print-on-demand services, businesses can create personalized items that showcase their brand identity and leave a lasting impression. 

Shirtsy business credit
[Shirtsy Custom Desk LED Sign]

Whether it’s clothing, accessories, or promotional merch, Shirtsy offers a diverse selection to help businesses enhance their brand visibility and engage with their target audience effectively.

Product categories include Apparel, Home (candles, wall art, and frames), Promotional (magnets & postcards), Restaurant Merch, Office (business cards, mugs, and mouse pads), Create (puzzles and stickers), Portraits, and Drinkables (bagged coffee). 

Shirtsy Company Overview

Shirtsy net 30 reviews

Shirtsy is a fashion apparel company based in Dania Beach, FL, dedicated to creating and selling unique and funny shirts. With a diverse collection of creative designs, they offer high-quality and distinctive shirts and other products that cater to various styles and preferences. 

I didn’t know this before I went down the rabbit hole, but Shirtsy is managed by the same person as Crown Office Supplies, Dana Angelino. Angelino is also responsible for a few other up-and-coming Florida companies like Coconut Bikinis and Greentees and a handful of other businesses. 

Shirtsy’s Net 30 Payment Terms

When considering signing up for Shirtsy’s Net 30 account, you need to understand the terms and how they will impact you. With this account, you have 30 days after each billing cycle to pay your balance. Shirtsy offers a 0% Annual Percentage Rate (APR) for purchases, based on your creditworthiness — This means you won’t be charged interest on your purchases if you pay off your entire balance by the due date each month. 

But, there are other fees associated with the account. 

Shirtsy charges an annual fee of $99. 

The annual membership fee is non-refundable. However, as a gesture of goodwill, Shirtsy claims that they will report the fee to the credit bureaus as your initial credit payment — This should allow your business to begin building credit immediately, regardless of whether you utilize the services.

And, there are late fees depending on your balance: 

  • $2 minimum finance charge
  • $15 for balances up to $100
  • $29 for balances from $100 up to $250
  • $39 for balances of $250 and over. 

In addition, a returned payment fee of $39 may apply if your payment cannot be processed.

Shirtsy Reviews

If you decide to sign up for the Shirtsy Net 30 Account, keep in mind that Shirtsy has the discretion to apply your payments in a way that benefits them the most — This means they may choose to pay off lower APR balances before the higher ones.

And, Shirtsy can change the rates, fees, and terms of the card agreement at any time, but they will provide you with advance notice of any rate or fee increases…If you don’t agree with the changes, you have the right to opt-out, but this may result in the closure of your account. You can continue paying the remaining balance under the old rates, fees, and terms.

Signing up for the Shirtsy Net 30 Account may affect your credit report. Shirtsy reports credit information to the credit bureaus, and they may request commercial reports and other information about your business. It’s crucial to provide accurate information and be aware of how your creditworthiness can be impacted.

To summarize the costs, you can expect to pay an annual fee of $99 and potential late fees and returned payment fees. However, if you manage your payments responsibly and pay off your balance each month, you can avoid interest charges. 

Review the terms and conditions carefully before making a decision, and if you have any questions, reach out to Shirtsy for clarification.

What to Expect When You Apply for Shirtsy’s Net 30 Terms 

Before applying for Shirtsy’s Net 30 account, make sure you meet the following requirements:

  • 25% or more ownership of the company
  • Accurate details about your company, including its legal name, website, EIN, and DUNS number
  • Your full name, email address, password, phone number, and date of birth
  • Your company’s complete address
  • Ability to receive account status notifications via email, SMS, and phone

Approval is contingent on commercial data reports, and commercial debt servicing and collections may be provided by a third-party financial institution — the application does not result in a hard credit inquiry and will not affect your personal credit score.

What does Shirtsy do?

To apply for Shirtsy’s Net 30 account, follow these simple steps:

  1. Visit Shirtsy’s NET 30 Application page
  2. Fill in the required information in the application form, including:
    •    First Name
    •    Last Name
    •    Email
    •    Password
    •    Company Name
    •    Website (optional)
    •    EIN
    •    DUNS (optional)
    •    Address (Street, Suite, City, State, Zip)
    •    Phone Number
    •    Date of Birth (Month, Day, Year)
  3. Read and agree to the terms and conditions (and that the information is truthful and accurate)
  4. Review the application details and click the Submit button to complete the application process.

That’s it!… You’ll receive further updates about your application status and instructions via the email you provide when you apply.

Recommended: Here’s How to [Actually] Get Business Credit With Just an EIN +More Options 

Does Shirtsy Report to Dun & Bradstreet? 

According to their customer support, Shirtsy reports to Dun & Bradstreet and other credit bureaus such as Equifax, Credit Safe, NACM, LexisNexis, and Ansonia. Shirtsy reports to these credit bureaus for any purchase with a minimum amount of $30.

Does Shirtsy report to credit bureaus?

They require that you make the payment 2 to 3 days before your invoice due date for the payment to be reported. Still, they report your net 30 membership fee as a courtesy, even if no order is placed. 

Shirtsy reports on the 15th of each month for on-time payments made the previous month. For instance, if you place an order in February but pay for it on March 1st, the payment will be considered a March payment and reported on April 15th. 

However, if the payment is made on February 27th or 28th, before the end of the month, it will be considered a February payment and reported on March 15th. 

It’s important to note that while some credit bureaus report accurately within 30 days, others have the discretion to delay reporting for a period ranging from 45 to 90 days. 

More Net 30 Options to Build Business Credit

An annual fee is not typical with a net 30 offer. And, several other net 30 offers report on-time payments to business credit bureaus. 

Using Net 30 vendors is a smart way to build your business credit score. These vendors offer payment terms where you pay the amount owed within 30 days. By choosing vendors that report to business credit bureaus, like Quill, you can establish trade lines and build credit. 

Business T-Shirt Club net 30

Other vendors, such as BP Gas, Valero Gas, Advance Auto Parts, Gemplers, Supplyworks, Business T-Shirt Club, and Lowe’s, provide similar opportunities. 

Recommended: Using 30-Day Net Vendors to Build Your Business Credit Score 

Final Thoughts

In this review, we’ve explored Shirtsy’s collection of custom swag and its knack for personalization. Then, we touched on the story behind the brand. We’ve also looked at the details of their net 30 payment terms (including the infamous $99 annual membership fee and potential late payment fees that could whack your credit score).

While Shirtsy has its charm, it’s a good idea to at least consider other net 30 account options without an annual fee. Just like mixing and matching outfits, exploring various vendors can help you find the perfect credit-building ensemble for your business.

Ready to discover the best net 30 vendors to level up your credit journey and obtain up to 100K in business credit in as little as 30 days? Join Business Credit Workshop today.

Sole Proprietorship VS LLC: How to Choose Your Entity Wisely

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Sole proprietorship vs LLC

Here, we teach people how to build business credit. And, establishing your entity is a super important step in the process — early on, the two most common choices are sole proprietor or LLC. 

If you’re running a business as a sole proprietor, and considering an upgrade to LLC,  you might already know that you can get some business credit even without registering as an LLC or corporation…But if you’re looking to take your business to the next level and secure larger no-doc business lines of credit (think 25k, 50k, 100k), you might find it challenging without a registered corporate entity.

Banks and lenders tend to prefer working with LLCs or corporations because they offer more protection and credibility. So, I highly recommend considering forming an LLC over a sole proprietorship if you’re serious about obtaining substantial business credit.

Don’t get me wrong — you can still apply for business credit cards as a sole proprietor. But, a registered LLC or corporation can make it easier to secure other types of financing and help you build a stronger credit profile for your business. 

In this article, we’ll dive deeper into the differences between sole proprietorship and LLC, and explore their pros and cons, especially when it comes to business credit and financing options.

Here’s what we’ll cover: 

Now, let’s get going! 

Are You Sure You Only Want to Look at Two Options? 

Before we get too deep into the pros and cons of LLCs vs sole proprietorships, let’s take a quick look at some more entity types — I want to cover it all and give you everything you need to know. After all, it’s crucial to choose the right structure for your needs. 

You might also like: What’s the Best Payment Processor for a Small Business? Really

Sole Proprietorship

A sole proprietorship is the simplest type of business structure and is owned by one person. The owner has complete control over the business and is personally liable for its debts and legal issues. Sole proprietorships are not taxed as separate entities from the owner, meaning that the owner reports the business income on their individual tax returns.

Limited Liability Company (LLC)

A limited liability company (LLC) is a type of business entity that gives the owners (“members”) “limited liability protection.” This is a swanky way to say that the member’s personal assets are separate from the company’s assets, and their personal liability is limited to the amount of money they’ve invested in the company. 

LLCs can have one (“single-member”) or more (“multi-member”) members, and they can be taxed as either a sole proprietorship, partnership, S corporation, or C corporation, depending on how the members choose to be taxed.

S Corporation

An S corporation is another type of entity that you may want to consider — it’s a type of corporation that is taxed differently than a traditional corporation (C corporation). An S corporation’s profits and losses are “passed through” to its shareholders, who report the income on their individual tax returns. 

This means that S corporations avoid double taxation. To qualify as an S corporation, a business must meet certain requirements set by the IRS.

C Corporation

Next, you have a C corporation — a traditional corporation that is taxed as a separate entity from its owners (“shareholders”); this means that the corporation pays taxes on its profits, and the shareholders pay taxes on the dividends they receive from the corporation. 

C corporations offer limited liability protection for their shareholders, but they are subject to double taxation.

Partnership Options

At this stage, it’s also important to look at the two types of partnerships: 

General partnerships are a type of business entity where two or more people share the management and ownership and management of the company. The partners share the profits and losses of the business and are personally liable for any debts or legal issues that the business incurs.

A general partnership is typically not taxed as a separate entity from the partners, meaning that the partners report the business income on their individual tax returns.

Limited partnerships are similar to general partnerships but with two types of partners: general and limited partners. General partners have control over the day-to-day business operations and are personally liable for any business debts and legal issues. Limited partners, on the other hand, have limited liability and are not involved in the management of the business.

Limited partnerships are typically taxed as pass-through entities.

Sole Proprietorship vs Single-Member LLC

A single-member LLC is not the same as a sole proprietorship. In terms of liability protection, taxation, ease of formation and maintenance, and flexibility in management, there are considerable differences between sole proprietorships and limited liability companies (LLCs):

First of all, sole proprietorships provide no liability protection for their owners — basically, he owner’s personal assets are at risk if the business is sued or incurs debt. In contrast, LLCs offer “limited liability protection” to their owners (their personal assets are generally protected from the company’s debts and legal judgments).

Next, sole proprietorships are typically taxed as pass-through entities, which means that the business’s profits and losses are reported on the owner’s personal tax return. LLCs can also be taxed as pass-through entities, but they provide the option to be taxed as a corporation (this can be advantageous for LLCs that want to cash in on lower corporate tax rates or retain earnings in the business without paying personal income taxes on them).

And, sole proprietorships are the easiest and cheapest business entities to set up…in most states, they require no formal paperwork or registration. Now, while LLCs require more paperwork and filing fees to establish, they offer formal structure and protection. Both types of businesses require ongoing maintenance, such as keeping accurate financial records and filing tax returns, but LLCs typically have more stringent compliance requirements.

Finally, sole proprietors have complete control over the management of their businesses…but (big but), this also means that they have full responsibility for all aspects of the business. LLCs are more flexible in terms of management structure — they can be managed either by the members or by outside “managers.” LLCs can also have varying degrees of ownership and voting rights among members, which allows for more customized ownership structures.

While both sole proprietorships and LLCs offer benefits and drawbacks, LLCs typically offer more liability protection, tax flexibility, and management structure options, but require more paperwork and ongoing maintenance. 

Here’s How Sole Proprietorships & LLCs Pay Taxes

Sole proprietors report their business income and expenses on their personal tax returns using Schedule C (Form 1040). The net income from the business is then subject to self-employment taxes, which include Social Security and Medicare taxes. Self-employment taxes are calculated on Schedule SE (Form 1040) and are owed in addition to income tax. 

→ Sole proprietors are also responsible for paying estimated taxes quarterly throughout the year.

LLCs have more flexibility in how they pay taxes — by default, single-member LLCs are taxed as sole proprietorships and report their business income and expenses on the same Schedule C as a sole proprietor (Form 1040). 

Multi-member LLCs are taxed as partnerships and file Form 1065 to report their business income and expenses annually. But, LLCs can also choose to be taxed as S corporations or C corporations by filing Form 8832 or Form 2553, respectively.

Comparison of Tax Rates & Deductions

Sole proprietors and LLCs taxed as sole proprietorships pay income tax at their individual tax rates, which range from 10% to 37% depending on their taxable income. They are also subject to self-employment tax, which is currently 15.3%.

LLCs taxed as partnerships, S corporations, or C corporations are not subject to self-employment tax — Instead, the owners or shareholders pay income tax only on their share of the profits. 

Both LLCs and sole proprietors can deduct typical business expenses, such as rent, supplies, and equipment, to reduce their taxable income. 

Can an LLC Be Used to Reduce Taxes?

You can use an LLC to reduce taxes in a couple of ways: 

  1. Elect to be taxed as an S corporation — this allows the owners to pay themselves a reasonable salary and take the remaining profits as distributions. This can reduce self-employment tax, as only the salary is subject to Social Security and Medicare taxes.
  2. Take advantage of deductions and credits — LLCs can deduct business expenses, such as rent, supplies, and equipment, as well as contributions to retirement plans and health insurance premiums. They may also be eligible for tax credits, such as the Research Tax Credit or the Small Business Health Care Tax Credit.

Note that sole proprietorships are eligible for many of the same write-offs and credits as LLCs. So, how can you choose between them? 

How to Choose Between a Sole Proprietorship and an LLC

Here are some factors to consider when deciding whether to choose a sole proprietorship or an LLC:

Sole Proprietorship:

  • Simple to set up and maintain — A sole proprietorship requires minimal paperwork and legal formalities, making it easy and affordable to start and operate. 
  • Complete control — As a sole proprietor, you have complete control over your business decisions and operations.
  • Tax benefits — As a sole proprietor, you report your business income and expenses on your personal tax return, which can simplify tax preparation and potentially lower your tax burden.

Limited Liability Company (LLC):

  • Limited liability protection — An LLC provides limited liability protection to its owners, meaning that the owners are not personally responsible for the company’s debts and liabilities. 
  • Credibility and professionalism — An LLC is often seen as a more credible and professional business entity than a sole proprietorship, which can be an advantage when dealing with customers, vendors, and investors. 
  • Flexibility in taxation — LLCs have the option to be taxed as a partnership, an S corporation, or a C corporation, providing flexibility in tax planning and potentially reducing overall tax liability. 

In general, if you’re a small business owner with low risk and relatively simple operations, a sole proprietorship can be a decent choice. However, if you are concerned about personal liability or are looking to grow your business and establish credibility, an LLC may be a better option. It’s always a good idea to consult with a lawyer or accountant to determine the best business structure for your specific needs and circumstances.

With that said, I know that you can get business credit with a sole prop but you can get serious no-doc business lines of credit (25k, 50k, 100k) without a real entity. so I recommend getting an LLC. You can get business credit cards but banks want to see an LLC or corporation to extend business lines of credit.

How to Register Your Business 

How to Register as a Sole Proprietor

Here are the basic steps to file the necessary paperwork for forming an LLC and registering as a sole proprietor.

Of course! Here are some more conversational explanations of the steps to form an LLC and register as a sole proprietor:

How to form an LLC:

  1. Pick a name for your LLC that’s not already taken in your state and meets your state’s requirements.
  2. File an Articles of Organization form with your state’s Secretary of State office. This form typically asks for basic information about your LLC, like its name, address, and the name and address of your registered agent.
  3. Draft an operating agreement for your LLC. This outlines how your LLC is run and who owns it. Some states don’t require an operating agreement, but it’s still a good idea to have one.
  4. Get any necessary licenses and permits for your business. Depending on where you live and what you do, you might need specific licenses or permits to operate your LLC.
  5. Apply for an EIN from the IRS if you plan on hiring employees or opening a bank account for your LLC.

How to register as a sole proprietor:

  1. Decide on a name for your business, whether it’s your own name or something else.
  2. Get any licenses or permits you need to legally run your business in your area.
  3. File a “Doing Business As” (DBA) form with your state’s business registration office to register your business name.
  4. Apply for an EIN from the IRS if you plan on hiring employees or opening a business bank account.

Remember, the specific rules and requirements for forming an LLC or registering as a sole proprietor vary by state and local municipality, so be sure to do your research and follow the guidelines for your location. For example, in Oregon, you can legally run a business after filing an “Assumed Business Name” alone, but may still need local business licenses. 

Recommended: Secretary of State Offices Directory | Where to File a Business License

Frequently Asked Questions

What are the disadvantages of an LLC vs a sole proprietorship?

LLCs can be more costly and require more paperwork than sole proprietorships, but they offer greater personal liability protection. Sole proprietorships are generally easier and cheaper to set up, but leave you personally responsible for any business debts or legal issues.

What is more risky, a sole proprietorship or an LLC? Why?

A sole proprietorship is generally riskier than an LLC, as sole proprietors are personally liable for any business debts or legal issues. Forming an LLC can offer greater personal liability protection, which can help shield the owner’s personal assets from business-related risks.

How do business owners pay themselves?

Business owners can pay themselves in different ways, including salary, dividends, or draws/distributions from business profits, depending on the business structure and personal financial needs. And, some companies pay the owner’s salary with a business credit card. It’s important to consult with a financial advisor or accountant to ensure compliance with legal and tax requirements.

Conclusion: Which Structure is Best for You?

Whether you should choose a sole proprietorship or an LLC is based on a number of factors. Do you want more ease or more protection? Do you have specific tax needs? By now, you should have an idea which is best for your operations. 

However, if you want substantial lines of business credit, there is a clear choice: form an LLC…You can certainly obtain business credit cards as a sole proprietor, but to get those larger lines of credit in the tens and hundreds of thousands range, most banks will want to see a more formal business entity like an LLC or corporation.

To learn how to obtain up to $100K in business credit in as little as 30 days, join Business Credit Workshop today.

Is it Illegal to Use a Business Credit Card for Personal Use? +More Answers

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Have you ever wondered whether you can use your business credit card for personal expenses? 

It’s a common question among business owners, but the answer can be a bit tricky. 

While we can’t give legal advice (if you need that, please talk to your attorney and your CPA), we’re here to provide you with helpful information that can guide you in making informed decisions for your business — One interesting thing we found out is that using your business credit card to pay yourself a salary as an employee of your own business can be considered a legitimate expense. 

Pretty cool, huh? 

We’ll delve into this and other commonly asked questions about business credit card use in this article, so keep reading to find out more!

Here’s what’s in store: 

Let’s rock and roll!

Scenario: Employee Uses Company Credit Card for Personal Use

While most of our content is targeted at business owners, you might be reading this because you’re wondering if you can add a pair of shoes to your business order, and still pay with your company’s corporate card. Here’s what I can tell you. 

When an employee uses a company credit card for personal expenses, it can cause a lot of problems. 

First off, it’s usually against company policy, which means the employee could face some serious consequences like getting in trouble with the boss or even losing their job. From a legal standpoint, this is risky for all parties because if the expenses are shady or illegal, both the employee and the company could face a run-in with the law. 

Next, staff members that use a company’s card for non-business expenditures can complicate finances because it’s hard to keep track of personal expenses and separate them from business expenses — it could cause some major issues with taxes and budgets down the road. 

Lastly, if personal spending exceeds the credit limit on the card, it can result in fees or penalties, which will hurt the company’s bottom line.

Can you use business credit card for personal use Reddit

Image source: Reddit

So, if you accidentally used a company credit card when you didn’t intend to, or if you notice that an employee used your business credit card for something questionable, it’s best to act fast. 

How to Prevent Personal Spending on Company Credit Cards

Q: Why does our Amazon business report show an order for a gold-plated toilet seat? 

A: Someone wanted to feel like a VIP on the company’s dime. 

In all seriousness, it’s crucial to make sure that employees use company credit cards responsibly and only for legitimate business expenses. Otherwise, the company could end up footing the bill for some pretty outrageous purchases!

Here are some actions you can take to avoid personal employee spending on your business credit cards:

  • Create clear policies — Make sure everyone knows the rules when it comes to using company credit cards. This means setting out clear policies on what expenses are allowed and what expenses are not allowed.
  • Set spending limits — Give your employees some guardrails by setting limits on how much they can spend with the company credit card. You can also set daily or weekly limits to help control spending.
  • Monitor transactions — Keep a close eye on credit card transactions to make sure there are no unauthorized or personal expenses. This means setting up alerts to notify you of any unusual transactions or spending patterns.
  • Require receipts — Make sure your employees know that they need to submit receipts for all credit card expenses. This helps ensure that all expenses are legitimate and for business purposes.
  • Provide training — Never assume that everyone just knows how to use a company credit card. Provide training that covers your company’s spending policies, guidelines, and best practices for managing credit card expenses.

By doing these things, you can help prevent personal employee spending on company credit cards…. and ensure that all credit card expenses are legitimate and for business purposes only.

General Rules for Business Credit Cards

First and foremost, you need to understand that business credit cards are intended for business expenses…legit ones! This means that you should only use the card to pay for things that are related to your business, like office supplies, travel expenses, and other business-related costs.

Next, it’s vital to keep your personal and business expenses separate (i.e. you should never use your business credit card to pay for personal expenses, like groceries, clothing, or personal entertainment). 

On a similar note, you need to keep track of your spending. You should monitor your credit card statement regularly to ensure that all charges are legitimate and for business purposes. When issuing business credit cards or corporate cards, it’s also a good idea to set spending limits for yourself and your employees to prevent overspending.

Lastly, be sure to pay your credit card bill on time and in full every month — Late payments can devastate your business credit score and result in hefty late fees and interest charges (remember, you should credit card funds to invest in assets, not squander on liabilities).

Note, that business credit card policies vary between credit card companies and businesses have a right to set unique spending policies within legal guidelines in their jurisdiction. 

Amex business card for personal use

By following these general rules, you can use your business credit card responsibly and avoid any potential issues down the road.

What Can You Use Business Credit For?

In a word, you need to use your business credit for business expenses. 

However, in some industries, expenses that seem frivolous can be complete