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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 That being said, some joint accounts give you the option to ask the permission of all account holders before money is withdrawn.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:
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proof of a UK address, such as a bank statement or utility bill
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identification, such as a driving licence or passport
Depending on your business structure, it’s likely you’ll need to provide:
Other business information that you’ll probably need to provide includes:
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current or previous business banking details
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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.
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