Business or private bank account for your business?

[Boons]

Good evening

Do you have a business account with regards to your S/E work? Reason I ask is that I am looking into one but dont like the charges. Is it ok to run your business from a private account, seperate to your own personal account?

Cheers all

 

[Softus]

Do you have a business account with regards to your S/E work?

Yes - one for each business.

...dont like the charges.

Who does? But you just include the costs in your calculation of overheads and get on with life.

Is it ok to run your business from a private account, seperate to your own personal account?

You'll be making it hard to manage for yourself, and your accountant will charge you more for the extra complication.

 

[breezer]

Most banks will not allow you to use a private account for buisness purposes.

besides unless your name is (For example) mr Fred's plumbing, its a bit of a give away what you are doing

 

[Softus]

Most banks will not allow you to use a private account for buisness purposes.

Actually breezer, if you're a sole trader and not a limited company then I don't see how they can stop you.

besides unless your name is (For example) mr Fred's plumbing, its a bit of a give away what you are doing

Er, you just get your customers to make cheques out to your own name. About 25% of mine do it by mistake anyway.

The problem is that you'd have terrible trouble reconciling what amounts to a virtual bank account with the company accounts.

 

[breezer]

Most banks will not allow you to use a private account for buisness purposes.

Actually breezer, if you're a sole trader and not a limited company then I don't see how they can stop you..

Could it also be the fact that as you are a sole trader you have to have eg
F.Bloggs T/A Freds plumbing on the cheque book?

Ltd etc companies have to give a list of directors on the paperwork, sole traders have to have T/A

T/A standing for Trading As

Obvioulsy on a ltd co check book it will say eg, Freds plumbing ltd

 

[Softus]

Could it also be the fact that as you are a sole trader you have to have eg F.Bloggs T/A Freds plumbing on the cheque book?

You don't have to - I don't know why you think that.

 

[breezer]

because thats what the bank told me

 

[Softus]

because thats what the bank told me

You'll be believing what you read in the newspapers next.

We've actually got our wires crossed here...

If you open a business account as a sole trader then you're right - you do have to have "T/A" on the cheques.

However, the OP was proposing to use his personal account as a business account. If he's a sole trader then there's nothing to stop him doing it.

 

[breezer]

what you mean elvis is not driving a bus on the moon?

I had no choice, when i set up a company the cheque book came with T/A. I have also seen, well i cant say hundreds but lots of checques with T/A and they were not from the teritorial army

 

[JohnD]

If you are Joe Bloggs trading as Bloggs Plumbing, or as Acme Water Systems, you have to say so as it is not your name.

If you are Joe Bloggs trading as Joe Bloggs you don't have to say so because you are who you say you are. If you are a sole trader you can trade in your own name without copmplications.

 

[Softus]

If you are a sole trader you can trade in your own name without copmplications.

Freudian slip?

 

[securespark]

I paid Gnat Brest (the fraction bank) for years, not realising that my own personal bank (Nationwide) would have happily let me bank with them FOC as a sole trader. In fact, I did, towards the end.

 

[crystal ball]

Abbey National http://www.anbusiness.com/ free business banking and interest too

 

[HandyHands]

I've just opened an Abbey business account - very quick turnaround in setting it up. I just need to start transfering DD's across - they do offer this as a service, but I'd prefer piece-of-mind that it's being done.

 

[noseall]

i use a private 'flex' account at nationwide.

no probs.