Can I set up a business bank account using my business name?

[Sara33]

I am starting a small business as a sole trader. I was told by Companies House that I can pick any name I wan for my business (within reason) and don't need to register it anywhere. When I open a business bank account, can the account be in the name of my business? i.e. Can my clients write their cheques in my business's name rather than my name?

Also, does anyone know which bank provides the most cost effective (preferably free!) business account? I need the account for the day to day running of the business. I will NOT be getting a loan from the bank.

 

[arcon5]

If your a sole trader your business name is

Mr Fore Surname t/a Businessx

Cheques can be made payable to the business name.

Companies house deal with ltd companies so not necessary unless your establishing a company in which case the bank account will be for the business, not you since you would be seperate entities.

You can choose any business name -- as long as its too similar to a competitor, especially if they are local to you as you could be done for 'passing off'.

 

[definitionaudio]

Hi saw your post about banking this might help

Just done this and set up a business bank acount with Santander as they do free banking if you keep within certain banking limits. As it is free banking you cant go into the branch to bank cheques or cash they give you envelopes to put in the cash machine.

All i had to do was provide a business card, a letter headed A4 with my business adddress etc on - used my home address as i work from home, picture driving licence etc

It was set up as a Business Name so none of this MR whatever trading as.

Just remember its free only if you keep within the limits for what you bank

Oh as i had a full time job aswell she said i couldnt be a sole trader aswell which is rubbish - you can have a business and work full time for someone else

Hope this helps

 

[Paul Norman]

yes, basically, as above! You can set up you account as your name t/as your business name. No need to register anything.

 

[Sara33]

Thankk you all, your advice helps so much.

You say with Santander you can't pay cheques in the branch and have to put it in the machine instead. My payments will be few and far in between but for larger amounts. How safe is it to put large cheques in the machine, i.e. not get a receipt for them?

 

[S-Marketing]

The machine scans the cheque and gives you a copy and a receipt.

Thankk you all, your advice helps so much.

You say with Santander you can't pay cheques in the branch and have to put it in the machine instead. My payments will be few and far in between but for larger amounts. How safe is it to put large cheques in the machine, i.e. not get a receipt for them?

 

[definitionaudio]

Hi

It gives you a receipt for what you bank - they say that cheques take 5 days to clear though so if you put a cheque in on a monday it would clear the following monday
If you are putting large amounts in just check there limits i think its only free if you bank under £ 3000 per month and so many cheques a month

cheers

 

[MyAccountantOnline]

I am starting a small business as a sole trader. When I open a business bank account, can the account be in the name of my business?

Yes it can - thats generally what you'd do.

does anyone know which bank provides the most cost effective (preferably free!) business account? I need the account for the day to day running of the business. I will NOT be getting a loan from the bank.

A lot of our small business clients use Santander and give very good reports on the service - might be worth look.

 

[talkinpeace]

Santander
You have to pay in at least £1000 a month or they bill you £12 per month
there is no upper limit that I have encountered....

 

[DickM]

General:
http://www.smallbusinesspro.co.uk/banking/free-business-banking.html

Santander's Free Banking rules & regs: http://www.santander.co.uk/csgs/Sat...&pagename=Abbeycom/Page/WC_ACOM_Home&posSel=2


and for those who have trouble with links, below is the interesting bits about free-banking.........

• HSBC - 18 months
• Barclays - 24 months
• Natwest - 24 months
• Lloyds TSB - 18 months
• Co-operative Bank - 18 months
• RBS - free if you don't need to use a branch (ie: operate your account via telephone or the internet)
• Santander - Free day to day banking:
  Provided you keep within agreed limits

Another thing to take into account if you are preparing your own Co's accounts, is the ease of downloading the statements for easy input/link to computer spreadsheets. So no manually copying numbers, just download or copy and paste using MS Excel, or whatever.
Above efficiency can also be a useful bargaining tool when placing your annual Co house & HMRC accounts business with an accountant.

I use HSBC, and their online statements are fine for above purpose.
Also, after my free business banking period expired, I agreed with my local branch manager to extended free banking, as long as the current & business money manager accounts stayed in credit