Sole Prorietor - Cheques payable to?

[IMEX Sourcing Services]

Hi,

If I open a business bank account for a sole proprietor, will my cheques be payable to my name (Business owner name) or is it actually possible to have them payable to the business name?

Ash

[Alpha]

As a sole trader you and the business are one and the same so you can have cheques made out to yourself or the business.

the important thing is to be able to idetify seperately any payments/receipts which are on behalf of the business.

To this end I would ensure that you have a seperate account in the business name and that all payments are made out to the business name.

[IMEX Sourcing Services]

Cheers Alan.

Another thing, in order for it to be on the business name, does the business name need to be registered?

Also, is it mandatory for a SP to register the business name (I do realise, that if its registered it cant be stolen)?

Thanks

[Eagle]

*
It doesn't have to be registered in either case - you are 'Joe Bloggs' trading as 'Business Name' and the bank will pretty much allow use of any business name you want. There are exceptions however and obvious copyright infringements.

You do not have to register the business name - just advise the Inland Revenue within three months of commencing trade.

Mark :)

[IMEX Sourcing Services]

Chers Mark,

So basically I can start the business with that name, open the bank account with that business name, and after that (actually after comencement) I still have 3 months to register it with Inland Revenue?

Just confirming?

Also, I have to register myself as, "Self Employed" with IR from day one, right? oe do I have 3 months for that as well?

Ash

[Eagle]

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Your cheque book will likely read: "Joe Bloggs t/a Business Name".

You can leave it up to three months before declaring the business but it's best to give it a few weeks first - test the water.

If things are going well, then once you've settled into a routine, get your income tax in order. Sooner you do that the better. Concentrate on establishing and strengthening your business first and foremost though - the tax man can wait.

...a little while. :)

If you're just starting up now, your physical tax return won't actually be due until late next year anyway...

[IMEX Sourcing Services]

Great Mark.

So basically. If I want to start now, all I have to do is open a business bank account, and I am off?

Ash

[Eagle]

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If cheques will be made out to your business name, then yes - you need a business bank account.

In any case, if the bank suspects someone is running business payments into a personal account, they are within their rights to charge business rates and may even inform the IR.

Good luck - let us know of your progress. :)

[IMEX Sourcing Services]

Cheers Mark..I will definately keep you updated?

But did you just talk about another Business Expense?

Business Rates? - I hope you meant the interest rate on a business account is probably lower? or are there any other charges on the accounts as well? Account maintenance charges, etc.?

Also, my business involves Import, and hence, is there anything else I need to do, to get going?

Ash

[Eagle]

*
Hi Ash

Business Bank accounts are usually free of charge for a year or so, depending on which bank you choose. Check with a few to weigh-up the pros and cons before deciding. Not sure if you'll get actual interest on any given account though.

As far as importing goes, that's a question I can't answer I'm afraid. :)

[IMEX Sourcing Services]

Cheers Mark, Thanks a lot for the help.

[multilingual]

You are probably aware of this, but just thought I would mention it;

If you go down to the bank to open an account in a business name, they will need to have some proof that you are actually trading under that name. If you are a sole proprietor then they will probably contact your accountant to verify the details, so make sure you have an accountant first or it might be a bit embarrassing.

:wink:

JB

[Alpha]

And now I have changed back from Eagle to Alpha :D :D :D :D

[multilingual]

Keeping on the ball, nice one!

:wink:

[Eagle]

If you go down to the bank to open an account in a business name, they will need to have some proof that you are actually trading under that name.
That didn't happen with me...? Then again, I'd been banking with them since 1987.

[autolycus]

Also, I have to register myself as, "Self Employed" with IR from day one, right? oe do I have 3 months for that as well?

Ash

Strictly speaking, it is three months from the end of the month in which you began self-employment. E.g. if you became self-employed on 5 June, you have until end of September to tell the Revenue.

You can do this by calling the Inland Revenue’s helpline for the newly self-employed (0845 915 4515) or filling in form CWF1 on the Revenue’s website.

[IMEX Sourcing Services]

If you go down to the bank to open an account in a business name, they will need to have some proof that you are actually trading under that name. If you are a sole proprietor then they will probably contact your accountant to verify the details, so make sure you have an accountant first or it might be a bit embarrassing.

What other form of proofs would be acceptable?

As to begin with, I am not really planning to use an accountant.

Ash