Banking 101 –
When to Open a Business Bank Account
If you are a business owner looking to scale, find out why a business bank account can help you lay the foundation for future growth.
A business bank account is essential if you are a limited company registered with Companies House. It is considered a separate legal entity and cannot be linked to your personal bank account. Even if you are self-employed, a sole trader, or freelance consulting, it makes sense to keep business finances separate from your finances to avoid confusion and potential issues with HMRC.
Do I need a business bank account?
If you are a business owner looking to grow, the short answer is yes. Not only is it easier to keep organised, but it also helps when it comes to preparing your annual accounts and company tax returns at the end of the tax year. Aside from looking more professional, a business bank account can offer benefits to you as a business owner, including dedicated relationships with your commercial banking team, business support and industry-specific expertise and insights.
At Arbuthnot Latham, we offer current accounts, debit cards, online banking, notice accounts and a range of other specialist banking facilities for your business.
Do I need a business bank account if I am self-employed?
Whilst it is not a legal requirement to have a business bank account if you work for yourself, it is far simpler to have one to avoid confusion. It will be much easier for you to maintain your business and personal finance records if these are kept separate, manage cash flows and complete your tax returns.
A business bank account will also provide access to banking experts who understand the complex needs of a business and offer expert advice.
How to open a business bank account
Ordinarily, to open a business account, you will need proof of your identity, your address, and documentation about your business, including proof of address, your Certificate of Incorporation, Companies House registration documents, and registration forms where relevant.
Arbuthnot Latham supports businesses in various sectors turning over more than £1 million per year – including media, real estate, legal and other professional services, education, retail, and technology.