Do I need a Business Bank Account?

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kirryman

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I am setting up a new rental business and as yet don't know how many transactions will be processed through the bank, yet. I want an account to keep work transactions separate from personal and wouldn't need an overdraft or anything. Just looking at business banking fee's and they look expensive so I was wondering, do I need a business bank account or will a personal account do?
 
If you are operating as a sole trader you can use a personal bank account. However, if the business is a Limited company it will need it's own account
 
Can I ask what your source for that info is Domo? Because AIB insisted that I (sole trader) had to open a business - and not personal - account, when I set it up 14 years ago. Were they wrong to tell me this, or is it at the bank's discretion? What do other banks do?
 
I was talking about the legal requirements - not the bank's requirements
 
Thanks for the help. Besides overdraft, what are the advantages of a business bank account. Would it be more beneficial than a personal account?
 
How expensive are the bank charges?

It makes like a lot simpler if you have separate accounts.

It will make the accounting easier.
If you have a Revenue Audit, it will be a lot cleaner.
You can put a business name on the chequebook.

What do you mean by a "rental business"?
 
The bank charges include quarterly charges and per transaction charges. They are not very big but starting out, I want to keep expenses as low as possible. My business is an online equipment rental company. I rent anything from baby equipment to sports and watersport gear as well as campers. I hope to expand to range of equipment as time goes on. The site is irishire. com. Its still in development at the moment but open for business.
 
I'll open two bank accounts:
one for payments incoming,from customers
second,for payments outgoing to suppliers,also with a cheque book and / or card.
 
Company
A company needs a bank account. As it is a seperate legal identidy, keeping money (even in a shareholders account) is not safeguarding a companys asset and the directors are in breach of their dutues.

To answer the question posed by the OP, A personal account will do - name it rental.
 
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