Do I really need business bank account?

blank_screen

Hi folks,
Im setting up as a sole trader and soon will be opening an internet shop. I was just wondering, do I really need a business bank account? Is it legal to trade on your private account? Thanks in advance.

drunkmonkey

Why would you not want business bank accounts?

It's best to keep them apart, there's nothing to stop you transferring money from one to the other, also the bank would like to see money going through a business account, especially if you want to go back and ask them for money to open more internet shops..

set up the business correctly, It might be no harm to do a start your own business course.

edellc

blank_screen wrote: »

Hi folks,
Im setting up as a sole trader and soon will be opening an internet shop. I was just wondering, do I really need a business bank account? Is it legal to trade on your private account? Thanks in advance.

anyone setting up their own company in any way shape or form would be mental not to set up a separate company account it is legal to trade on your private account but it will get messy i promise you that also if you are getting someone to do your books for you do you really want them to see your personal transactions? :eek:

blank_screen

thanks for replies, I already did start your own business course and I know its far better to have the account but when I saw all the fees and charges for business account in AIB I was shocked. However, I heard that first two years are usually free of all charges, is that true?

MagicMarker

You could just set up a separate personal account and use that for the business?

DublinWriter

Banking is free for Limited Companies with Bank of Scotland - maybe they have the same for sole traders?

You're asking for a lot of trouble if you mix your business account with your personal account - working out cash flow and reconciling P&L accounts would be a nightmare.

blank_screen

ok, I'll definitely open business account, and what about two years without charges in AIB, has anyone heard of this? Who can qualify?

DoMyBooks

blank_screen wrote: »

ok, I'll definitely open business account, and what about two years without charges in AIB, has anyone heard of this? Who can qualify?

As a sole trader you can use another personal account for business purposes. You dont specifically need what the bank call a 'business' account.

But as above keep your personal and business transactions separate it will make your life a lot easier.

Check what the fee's are after the two years before you sign up to anything.

blank_screen

one more question, is there a chance to get a credit card while on Back To Work Enterprise Allowance?

Eoin

If you use a private account, then would you be able to lodge checks made out to your business name?

PBullman

I have operated as a sole trader for the last 10 years. I use the one account for personal & business. I then keep a cash payment book on excel which identifies the business expenses. This is the way my accountant advised me to set it up originally and it works fine.