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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.
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:
However, it’s important to note that not all banks offer joint business accounts.
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.
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:
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 That being said, some joint accounts give you the option to ask the permission of all account holders before money is withdrawn.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.
When applying for and opening a joint bank account, everyone you want to have access to the account will need to provide:
Depending on your business structure, it’s likely you’ll need to provide:
Other business information that you’ll probably need to provide includes:
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.
Here are some of the best-known joint business accounts compared:
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
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
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:
What features are you looking for in a joint business account? Let us know in the comments.
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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