Small Business owners are being cautioned to avoid applying for new credit cards that are being labeled as “small business credit cards.” Getting a new credit card labeled expressly for small business may sign you up for extra liability, despite reforms under Credit Card Holder Bill of Rights that goes into effect February 2010.

With small business credit cards, there’s a second level of liability that’s specific to small business credit cards. The initial liability to pay the credit card is the small business, which is primarily responsible for paying the credit card debt. With these credit cards, lenders are essentially “piercing the corporate veil” and placing a secondary responsibility on the person that signs up for the card in the event that the small business cannot pay the debt.

The newly passed Credit Card Holder Bill of Rights does not offer any specific protections for entrepreneurs and small business owners that sign up for small business credit cards. If you are a small business owner, you can expect that banks and credit card companies will attempt to lock you into a new small business credit card instead of a personal credit card. Instead, it’s typically a better idea to get a personal credit card for your business expenses and simply paying the bill from your business account.

According to the Wall Street Journal, Chase will be launching at least four new “small business” credit cards targeted at entrepreneurs. The offers will likely suggest that you are being offered the new card because of your business and personal success, but don’t let yourself be fooled, these cards should probably be avoided.