UK small business - business bank account or?
UK small business - business bank account or?
This may sound dumb but I have started a small business and need some advice on the bank account. If I set up a business bank account doe sthat mean that any cheques payable to my personal name can not be deposited in it because the business account would be in the business name? Dumb question I know but I'm new to this. I am registered as self employed and the business is registered with HMRC - not registered as a company at companies house. I am not registered for VAT either as my turnover is below the threshhold (hope that helps). Should I just use my personal bank account or would it better to open a business account (sorry that's 2 questions lol!) thanks!
Answers:
Crissy T: You need to open a business account, you want to keep that seperate from yourself eventhough its your business. If you get any checks, you want them to be made out to your company name, and then when you cut yourself a paycheck, you make it to yourself, and put in your personal account.
2007-02-24 08:43:30
2007-02-24 08:43:30
Chosen Answer
HUGH M: Not a dumb question at all. Your bank will be able to advise you about cheques payable in your name but a lot depends what you call your business and how you ask your customers to complete their cheques. If, for instance, you call your business Jean Jones, your cheques could be made payable to J. Jones or Jean Jones. If, however you called your business Flowerpower, cheques to Flowerpower would immediately be banked in your business account name of Flowerpower but you bank would have to agree to anything else, Remember that the Revenue will be interested in any payments you receive so keep your nose clean and avoid the retribution that might come later. Good luck in your business, I've just retired after 30+ years self employed.
2007-02-24 08:46:10
HUGH M: Not a dumb question at all. Your bank will be able to advise you about cheques payable in your name but a lot depends what you call your business and how you ask your customers to complete their cheques. If, for instance, you call your business Jean Jones, your cheques could be made payable to J. Jones or Jean Jones. If, however you called your business Flowerpower, cheques to Flowerpower would immediately be banked in your business account name of Flowerpower but you bank would have to agree to anything else, Remember that the Revenue will be interested in any payments you receive so keep your nose clean and avoid the retribution that might come later. Good luck in your business, I've just retired after 30+ years self employed.
2007-02-24 08:46:10