Sole Trading: More Than One Business Banking Query

[TS1940]

Hi, If a sole trader has more than one business, should they have separate business bank accounts?- if thats allowed.

 

[MJ Holohan]

No you don't need to. But it might be easier to operate 2 bank accounts so you can see how much each business is making.

 

[MyAccountantOnline]

and yes its allowed

 

[WaveJumper]

I would add as an aside, if you can get away just using one less bank charges, just remember once them free banking offers run out it's surprising how quickly the charges soon start to mount up if you are using one of the major high street banks

 

[Optegris]

Personally unless they were totally separate legal entities I would just have the one account. The only downside to this that I can think of is that it makes bank reconciliations a bit more tricky...

 

[DontAsk]

Personally unless they were totally separate legal entities

It's a sole trader.

 

[Optegris]

It's a sole trader.

Yup got that. Doesn't really make a difference though if it's a sole trader or ltd or whatever. If they are completely separated then ideally there should be separate accounts.

 

[DontAsk]

It's a sole trader.

Yup got that.

I don't think you really have.

Doesn't really make a difference though if it's a sole trader or ltd or whatever. If they are completely separated then ideally there should be separate accounts.

He's a sole trader. There is only one "business", him.

A sole trader isn't even a legal entity as I found out when trying to buy software signing certificates.

 

[Optegris]

I do understand the question thanks, amazingly enough I have actually managed to run my own business both as a sole trader and limited company.

I'll let you carry on from here....