Bank Account advice

[saree]

Hi
I used to post on here a while back but as I am now taking a slight change in direction with my business idea and things are now getting underway with the new website I have found myself back on here and wanted to ask all you lovely WAHM some advice.

I want to open a separate bank account to use solely for the new business. Can I just open a normal current account and put it in my business name or do I have to have a business account? I had a business account in the past but after a year they started charging me for paying in cheques.

Some suppliers I've contacted want a letter from the bank to prove I am a legit new business so I need to get this sorted soon. Which bank would you advise going to? I don't need an overdraft/loan or anything at this stage so I guess its just which one will give me a cheque book and debit card and a letter for this type of account.

Many thanks
Sarah

[littlesheep]

You can use a personal account but that will be in a personal name... if you want an account with your business name you need a business account.

I have an Abbey business account which doesn't have any charges (within certain limits)

HTH

[brooklyn]

HSBC also has a free banking if you are under a certain number of transactions.

[Mary Poppins]

My business bank account is with Natwest (purely because they are in my village). They offered me free banking for the first 2 years, then I start getting charges but the majority of my banking is via Paypal and Nochex. When I start paying fees, they will work out cheaper than me having to travel to the nearest town and pay parking fees as my cheques are few and far between.

[buppybean]

Im with ABBEY.
Its easy to set up and everything is fee unless you pay in thousands per month :)

[Miranda]

Another vote for HSBC but you must get their online business banking to get it for free (so long as your t/o is under £250K and you bank less than £2K a month in cash and use online payments rather than more than 20 cheques a month, or something like that!)

[Issyboo]

I also have an Abbey business account. As has been said transactions are free up to 100 transactions per month. Everything is done by the cashpoint machine or online or if you don't have a branch nearby you can post your cheques in freepost envelopes.

[Jen]

there is no law that says you have to have a business account, if you want a normal account then you can.

[partybabe]

If you are setting up as sole trader then you can use a personal account, but I have heard that some banks are starting to raise eyebrows if you pay a lot in on a regular basis.

If you are setting up a company you will have to have a business bank account.

Try looking at the FSB, membership has a variety of benefits but you also get free banking through them too.

[Jen]

If you are setting up as sole trader then you can use a personal account, but I have heard that some banks are starting to raise eyebrows if you pay a lot in on a regular basis.

If you are setting up a company you will have to have a business bank account.

Try looking at the FSB, membership has a variety of benefits but you also get free banking through them too.

When i went on a course run by the tax office they said there is no legal requirement to have a business account.

[friendlybaby]

When i went on a course run by the tax office they said there is no legal requirement to have a business account.

No, but if you want it in your companies name then it does have to be a business account.

[BellaMiller]

I'm with the co-op via the fsb - free banking plus an annual £25 loyalty bonus :)

[saree]

Thanks everyone for all your replies. I've had a look around and think I will go with the Abbey, just need to get the form downloaded, filled in & send it off.

[obscure]

I am currently with Alliance and Leicester but we are considering joining the FSB as one of the perks is free banking with the co-op and they are a nice ethical bank :)

I had hideous problems with Abbey losing cheques (or the post office losing cheques ont he way to abbey!). My biz lost over £1k from that :( So beware if you go with abbey as I believe their free account is postal only.

Sadie

[littlesheep]

I had hideous problems with Abbey losing cheques (or the post office losing cheques ont he way to abbey!). My biz lost over £1k from that :( So beware if you go with abbey as I believe their free account is postal only.

Sadie

I lost one - luckily the school reissued it for me... I do also make sure that I send each cheque in on it's own so if one does go missing it is just one not a whole stack (never had lots anyway as most people pay online)

[obscure]

I lost one - luckily the school reissued it for me... I do also make sure that I send each cheque in on it's own so if one does go missing it is just one not a whole stack (never had lots anyway as most people pay online)

Good idea! I sent in 2 batches, the worst thing was it was a while before i noticed as I dont check my biz account sheets regularly or anything so I lost out :(

[partybabe]

When i went on a course run by the tax office they said there is no legal requirement to have a business account.

A company is a separate legal entity and therefore has to have it's own account. At least that is what I was told by my accountant.

[obscure]

A company is a separate legal entity and therefore has to have it's own account. At least that is what I was told by my accountant.

This is true if you are a limited company - not true if you are a sole trader or partnership. This is due to the fact that as a sole trader then the profits are yours and you do not need to make drawings or a wage to take money out of the business.

:) Sadie

[bagsoffun]

There are a few banks/building societies that offer free banking. I'd take a look around your local branches and see which suits you best. Although you don't have to have a business account unless you are a ltd company it does always look better when customers ask who to make chqs payable to and as you say suppliers asking for references.