Joint account as business account.

Frere Jacques

The which bank question seems to have been done to death so thanks to everyone who posted on those threads over the years. It's a great way to get up to speed.
I have come across people mentioning using a personal account as a current account for their business. Is there anything wrong with this from a legal point of view?
My wife and I wish to register a Ltd company and as a start up are very keen to keep the costs down.
Would an accountant have a problem if we present our books to them to do our returns if the company is called X.ltd and the accounts are in Joe and Jill Blogs name and there is no mention of X.ltd on the statements.
We understand we couldn't accept cheques made out to X.ltd as we couldn't lodge them but we envisage a lot of our payments will be either paypal, cash on delivery or bank transfer.
All we need really is a current account with a debit card to pay for over the counter raw material costs and postage costs and to make payments to my wife's salary once/if we get off our feet.
Do banks frown on opening a joint account for such practices. I don't see why it should be their business what we use the account for once we follow the letter of the law.
I'd really appreciate the views from anyone who has gone down this route or anyone who has avoided this route and why. We are meeting someone from a local enterprise board in a couple of days so I'm trying to get as much up to speed to get the most out of that, so all help welcome.

Thanks for taking the time to read.
FJ.

jimmii

I opened an account with aib and they suggested using a regular account instead. Thr account name is my name t/a company name so it has both on and we have received cheques made out to the company and lodged them fine.

pedroeibar1

Frere Jacques wrote: »

I have come across people mentioning using a personal account as a current account for their business. Is there anything wrong with this from a legal point of view?
My wife and I wish to register a Ltd company and as a start up are very keen to keep the costs down.

The issue is one of corporate law rather than accounting, although it poses difficulties for the latter also. If you form a limited company it will have a separate legal personality, (different to you, or your wife, or you+your wife.) So it does need a separate account. How could you lodge cheques made payable to the company if you do not have an account in its name? Ditto for transfer of payments from Paypal.

If you do not form a company and trade simply as sole traders, you don’t need a separate account (because you are the 'business') but it would be highly advisable to do so e.g. Mr. & Mrs. Smith t/a Smiths. From a book-keeping perspective it would be a nightmare to have business and personal expenses going through the same account and you most likely would waste in time far more than the costs of a separate a/c. There also are "joint & several" issues that you should consider if you continue as a sole trader.

While I'm not a fan of Irish banks/banking, it's not them being difficult, there are (and always were) CBI rules on dealing with customers but over the last few years they are being strictly enforced..

delahuntv

Fro a legal point of view, I'd advise against it. The whole idea of a limited company is to limited your liability of things go wrong. If you use personal banking, you could be held personally responsible as every cent in the personal account would have to be proven to be yours.

Business banking costs are not that high - most of the charges are in the usage. Talk to your own bank branch and they will advise you best route

Frere Jacques

Thanks folks for the replies.
Our plan was to use the joint account solely for the business but I can see the point that is raised; if it's limited, keep it limited and don't muddy the water.
Thanks for all the help.
FJ.