The best joint business account for small businesses
3-minute read
If you run your business with other people, you may want to consider opening a joint business bank account.
A joint account can make it easier for you and your business partners to manage your finances. Read on to find out how joint accounts work and an overview of some of the best options for your business.
What is a joint account for business?
Much like a personal bank account, a joint business account allows several people to deposit and withdraw money.
Most joint business accounts will have the same features as a standard business bank account, such as:
- access to overdrafts and loans
- online banking
- codes for international payments
- protection from the Financial Services Compensation Scheme (FSCS)
- access to savings accounts
- expenses, invoices, and accounting management
- financial support and guidance from the bank
However, it’s important to note that not all banks offer joint business accounts.
What is a partnership business bank account?
You may also see joint accounts called partnership business accounts or joint venture accounts.
A partnership business account refers to the partnership business structure.
A business partnership is where several partners share the responsibility for a business. Read our guide to general business partnerships for more information.
Do I need a joint business account?
Whether you need a joint business account depends on the structure of your business.
If you operate as a sole trader or general business partnership, you’re not legally required to separate your business finances.
However, if you run a limited company or a limited liability partnership, it’s a legal requirement to have a business bank account.
Read our guide on the best business banks for more information on the difference between personal and business accounts.
If you do decide to open a business account, whether you choose to open a joint account is up to you.
Here are some of the reasons you might open a joint business account:
- it’ll be easier to manage cash flow if all the money is in one place, especially if your business is growing
- tax returns and accounting will be simpler if you only need to report from one account
- your business will appear more professional to customers, suppliers, and employees
- you could improve your business’s credit score, making it easier to get finance
What are the downsides to opening a joint business account?
If you’ve started a business with someone, it’s likely you trust each other. However, it’s important to remember that when you open a joint account, all partners will have equal access to the business’s money. This means one partner could withdraw money without permission of the others. That being said, some joint accounts give you the option to ask the permission of all account holders before money is withdrawn.
Joint accounts also financially link people together. Bear in mind that if one of your business partners has a poor credit score, this could affect yours.
Although having a joint account makes managing finances easier, switching or closing an account can take longer as it’s likely that all account holders will need to authorise the decision.
How to open a joint business account
When applying for and opening a joint bank account, everyone you want to have access to the account will need to provide:
- proof of a UK address, such as a bank statement or utility bill
- identification, such as a driving licence or passport
Depending on your business structure, it’s likely you’ll need to provide:
- certificate of formation
- partnership agreement
- evidence of the partnership trading address
- contract of co-partners
Other business information that you’ll probably need to provide includes:
- current or previous business banking details
- estimated annual turnover
- total number of employees
If you want to open an account with a challenger bank, you may be able to apply online. Traditional high street banks are more likely to require you to apply in branch or over the phone.
If you already have a business bank account, you may be able to simply add other people to create a joint account.
You may also be able to grant a level of access to your business account to some employees without making them a full account holder.
Which bank has the best joint business account?
Here are some of the best-known joint business accounts compared:
Bank | Fees | Key features | Other information |
No monthly fee or bank transfer fee | Shared app access and individual cards for partners | Directors will need to be UK residents | |
£6.50 monthly fee, no transfer fees | Easy access to foreign currency, suitable for businesses with overseas partners | £200 incentive for switching | |
£4 monthly fee, no transfer fees | Partners can access several accounts from a single platform | Cashback option | |
No monthly fee or bank transfer fee | All account holders can manage the business finances | No fees for overdrafts under £500 | |
£3 monthly fee and 30p transfer fee | Integrated bookkeeping, invoicing, and tax calculation with day-to-day banking | No arranged overdraft option |
Joint business account – agree your roles
When you open a joint bank account with your business partners, it can share the load of managing your business finances.
However before you start using the account, it’s important that you agree roles and responsibilities to make sure everything runs smoothly.
Some of the things you’ll need to consider are:
- choosing a main administrator for the account
- agreeing who can withdraw funds and make transfers
- having a plan in the event the business closes or a partner leaves
What features are you looking for in a joint business account? Let us know in the comments.
More finance guides for small businesses
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Written by
Conor Shilling
Conor Shilling is a Copywriter at Simply Business with over two years’ experience in the insurance industry. A trained journalist, Conor has worked as a professional writer for 10 years. His previous experience includes writing for several leading online property trade publications. Conor specialises in the buy-to-let market, landlords, and small business finance.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
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