Does a company limited by shares need its own business bank account?

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Hello, I’m curious about business bank accounts. I’ve just had my application approved by Companies House for a new limited by shares company. The next step will obviously be registering with HMRC, but in the meantime, I’m wondering what to do about business banking. Does a limited company absolutely need to have its own bank account, or is this optional?

Thank you in advance for your help.

Answers

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A business bank account is optional but it is impractical not to have one for your limited company because you will not be able to effectively monitor your your business income and expenditure. If you do not have a separate business account, it will be really difficult to distinguish your company’s finances from your own, This will create a bit of a nightmare scenario when you’re trying to do your accounts and tax returns.

It is relatively easy to open a business bank account, and it will make your life a lot easier. Your business will also appear far more professional and credible to clients if they can transfer money to an account in your company name, rather than a personal bank account.

a year ago
 

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