Whether you’re a sole trader or a director of a limited company it’s also worth getting yourself a business bank account. Of course, as a sole trader you can trade using your own personal account, but not only does this potentially breach the terms and conditions of the usage of that card, but it can also complicate matters when it comes to your self-assessment and it looks unprofessional. A business account is mandatory if you’re making the transition towards becoming a limited company as that company is now its own separate entity and as such requires its own bank account.
When you open a business bank account for your limited company you will now notice that the bank account is in the company’s name rather than you as an individual. This looks more professional to clients who sometimes are hesitant to do business with someone who invoices demanding payment to a personal account.
Now, moving on to the process of getting yourself a business bank account, firstly you need the following documentation ready on you as these will be needed during the application process:-
- Proof of identification (this can be a passport or a photographic driving license).
- Proof of address (for yourself individually).
- Proof of address (for your business).
- Any contact details for yourself as a director and the company.
- Your company’s house registration number (this will only be required if you’re a limited company).
- What your estimated turnover annually is.
- There is a potential, dependent upon your banking provider, that they may perform a credit check and ask to see your banking history.
Most banking providers within the UK won’t actually give you the option to apply for a business bank account online. It’s much more preferred for you to apply for this account in person so they can sit down and have a chat with you and understand your business a lot more fully so they can make more of an informed decision in regards to the outcome of your application.
As opposed to personal bank accounts, business bank accounts tend to come with a range of extra bonuses, typically because with business bank accounts, you’ll be expected to pay a minimal monthly charge.
Some of these added benefits include having your own dedicated personal advisor who will be on hand for you to contact directly rather than going through to a standard call centre. This more personal and bespoke experience is much more preferred by many business owners who want to speak to someone who has a history dealing with themselves and their company. Other benefits include not having to pay fees on any of your certain transactions for a limited period.
If you want to know more about business bank accounts and the application process get in touch with a member of the team here at D&K Accounting and we’ll be more than happy to run through everything with you.