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Do you have to have a ltd bank a/c if ltd co.?

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LianneF

LianneF

Free Member
Jul 18, 2007
798
53
Oxford, UK
Hi
I have setup a normal bank account in the business name so I guess the official name is joe bloggs t/as ........... If i now go ltd do I legally have to setup a ltd co. bank a/c? I do not accept cheques so can't think of another reason why I would need the ltd bit. It's such a pain changing everything and sagepay charge you again to change the bank account number.
Thanks
Lianne
 
Its a pain I know, but if you are sending out cheques on a non corporate account you could be construed as holding yourself out not to be a company, and therefore not have the protection of limited liability.

I have seen companies use a sole trader account treated as a directors laon, but wouldnt reccomend it.
 
Last edited:
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allthingsgifts said:
It's such a pain changing everything
Click to expand...

I know, but it's worth doing and you only have to do it once.
You aren't legally obliged to have a Ltd Co bank account, but SD raises some very valid points as to why you shouldn't.
Running it as a DLA (which is what you would be doing) can have some problematic tax consquences.
 
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