My bank has rang me and said i cannot use my personal account for my business is this true?

Question

i have been self employed for 25 years and have always used my personal account

Answer 1

Yes. A business acount is usually more expensive. Why do you think banks have business accounts?

If you are running a business you should have a seperate account for tax reasons, anyway. How can you muddle up your business money with your own money? How do you seperate your business expenses from your personal expenses?

Answer 2

yes u need to open a business account

Answer 3

Yes this is true and consider yourself very lucky to have been able to use your personal account for 25 years for business. You must be receiving checks made out to your name. You must open a business checking account and file a ficticious name application with a local paper if you are in the USA. The term you use "rang me" sounds British and I do not know their policies.

Answer 4

Well they must have found out and want more money from you then. Most personal accounts don't have costs etc. But a Business account has so many fees and costs involved that's why they want you to have a business account too!

This is how they make so much profit.

Answer 5

u need a business account

Answer 6

If you change your personal account title to a "dba" (doing business as) you can use it for both.  For example a man named John Davis has a handyman business called The Handy Husband.  His account title would have to be John Davis dba The Handy Husband.

Answer 7

Yes that's true. Ask your bank if they offer automatic transfer services. Then use your business account. If your business account lacks the necessary funds, they will automatically transfer the deficient  amount  from your personal account to the business account.

Answer 8

I don't know, did your bank ring you?

Answer 9

Looks like your Bank has decided it wants to squeeze more money out of you ..

No doubt if you check the 'Terms & Conditions' (small print) you will find they are correct .. so you really don't have much choice but to move your business elsewhere .. (I would not make too much of the fact that you have used the account for 25 years .. that is likely to result in them sending you a bill for 25 years Business Account charges ..)

I believe some Banks / Building Societies are more 'self employed friendly ' .. you should shop around for a new Bank .. and then move all your accounts  ..

Answer 10

The bank does not care whether you are using your personal account to deposit or withdraw funds for your business, however, you cannot deposit a check or any negotiable document written in the name of your business name. You have to establish a business account or get a business license and submit the license to your bank and use the business name as a DBA or "Doing Business As". Then the bank can identify you personally and your business name as "one".

Ask an officer of your bank how you can set -up your personal account to work together with your business. They are more than willing to give you a professional advise.

They may offer you to set up a Business Savings Account where you may deposit checks written to your business name.

If checks are issued in your name, you have no problem with that.

Hoping this answer helps.