Can I take money out of my company without a business bank account?

0

Until last week, I worked as a sole trader in the journalism industry. I’ve now incorporated a limited company, as I’ve been making enough that I’m ready to get a few tax benefits for my trouble. That being said, I’ve not got a business bank account yet. Can I take money out of my limited company without that account?

Answers

0

Yes, you can take money out of your limited company even if you don’t have a dedicated business bank account in your company name. If you have available profits from your company’s business activities, you can pay yourself a director’s salary or take shareholder’s dividends regardless of whether these profits are sitting in your personal account.

You must, however, keep a record of any money you take from your company. Unlike operating as a sole trader, business profits do not belong to you in the first instance. Your company has to distribute profits to you.

Director’s salaries should be paid and recorded through payroll. To issue dividends, you must create a dividend voucher as evidence of the payment. All of these types of payments should be recorded in your accounts.

Although a business account is not required by law, it is better to have one so I would recommend setting one up as soon as you can. You will find it a lot easier to manage your finances and accounting requirements if you do.

a year ago
 

Your answer