It might seem easier just to use a personal bank account for your new business rather than hassle with opening a separate business account, but there are some disadvantages to this.
Disadvantages of Using a Personal Bank Account Although opening another account elsewhere isn't difficult, there are problems that could arise with having your account suddenly closed. It's important for you and your new business to abide by the rules otherwise, there is a risk that your account could be closed altogether.
Each bank will have its own policies in regards to how accounts can be used. The bank you use for your personal banking may not allow you to use your account for business banking. You are actually not even required to have a bank account at all by the HMRC, but unless your business runs only using cash, it might prove difficult to operate without some sort of bank account. It is not required by the HMRC that a business has a separate bank account it is only required that the transactions be kept separate. For this reason, many people decide to use their personal bank account for their new business. This deal was reached in regard to personal accounts. Using a Personal Bank Account for BusinessĪs of November 2014, the United States and the UK agreed to provide basic bank accounts that are fee-free. The bank you use and the type of business you have are some of the things that it will all depend on.
The quick answer is yes, you can use a personal bank account for your business, but there is more to it than that. What Is the Main Purpose of a Checking Account?Ĭan a business use a personal bank account is a question some new businesses might want to know. Why Your Business Needs a Separate Checking Account 5. Advantages of Using a Personal Account for Your Business 4. Disadvantages of Using a Personal Bank Account 3. Using a Personal Bank Account for Business 2.
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