Do you need a business account?

These are the 8 reasons you need a business account:

Do you need a bank account?

1. Makes it easier to pay tax and VAT

Separating your business transactions and finance from your personal finance will make it easier for you to pay your TAX and VAT. This is because you will have a more clear view of your transactions.

2. Keep your personal and business money separate

Keeping your business money and personal money separate is a good idea as you will not be spending your business money for personal use by error and vice versa. If you don’t do that, it will be very hard to distinguish your business finance from personal finance.

3. Be Able To Accept international payments

You will not be able to accept payments and trade internationally with your personal account. If your business requires you to make money transactions from abroad, then you need a business account.

4. Buying from wholesalers and suppliers

Wholesalers and suppliers will not give you a trading account from a personal bank account. You will need a business account.

Do you need a bank account

5. Access to business finance and loans

You might not get access to business finance and loans without a business account.

6. Easier to pay salary for staff

It will be easier to pay staff salary from a business account.

7. Integration With Accounting Software

Some business accounts will enable you to integrate it with accounting software such as QuickBooks and Xero.

8. Professional image

A business account gives your company a more professional image.

Do You legally need a business bank account?

If you are a limited company you legally need a business account, but not if you are a sole trader. Here is further detail:

All limited companies legally need to have a business account. But, if you are a sole trader, then you do not have to have it. Although, it can be advantages to do so.

Do i need a bank account

Limited Company / Limited Liability Company

A limited company and a limited liability company is legally required to have a business bank account. The business is a separate entity from you. You have to keep all its financial dealings separate from your personal bank account.

Sole Trader

A sole trader does is not legally required to have a business bank account. You can do the business dealings from your personal bank account. Even if you have a few people working for you, you can still use your personal account. But, you have to keep a record of your business transactions and finances for VAT and TAX purposes.


If you are a partnership, you are not required to have a business bank account, legally, but it is practical to have it. It is better to separate your personal money from the business money.

A partnerships does not legally require a business bank account. However, it would be practical to separate the business money from personal money.

Business bank accounts

If you need a business bank account, here are some which you can open quickly and easily:

Cashplus Bank




Card One Money

Counting Up


Additional information

If you would like more information about bank regulations, go to: Financial Conduct Authority (FCA).

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