Compare Joint Business Bank Accounts

What is a joint bank account and how does it work?

A joint business bank account is a business bank account that is opened and accessed by more than one person. Much like a personal joint account, a joint business bank account allows two or more people in business together to pay in cash, withdraw money and use all the other facilities offered by the business account.

The only difference between a joint business account and a regular business bank account is that more than one person can access the former. Other than that, they function in the same way.

When searching for a joint business account, you should also look out for terms such as partnership bank account or joint venture checking account.

Do I need a business account for a partnership?

If your business is a general partnership and operating as a sole trader or freelancer, then you are not legally required to set up a business account.

However, if your business is either a limited partnership (LP) or a limited liability partnership (LLP), you must set up a business bank account. This is because they are legally separate entities, and must be managed as such.

» MORE: Do I need a business bank account?

When is a joint business bank account worth it?

If your business has multiple owners, then a joint business account will allow each partner equal access to the business account. It will also allow you greater flexibility and clarity when it comes to your financial management.

It makes your business appear more professional, and will save you time when it comes to submitting your tax returns to HMRC by separating your personal and professional finances.

And as your business grows, having a dedicated business account, that multiple partners in the business can access, will help you keep on top of expenses, invoices, transactions and cash flow all in one place.

As well as this, it will improve your business’s credit history, making it more likely that you will be able to access business loans and finance if you need to.

» MORE: How to improve your business credit score

Can I add someone to my business bank account?

It is possible to add someone to your business bank account, making it a joint business account in the process. Most banking providers will allow you to do this online

When you add someone to your business bank account, you can give them varying levels of access. This could include allowing them to make payments, but not allowing them to apply for loans or make changes to the account itself.

This is the difference between a joint owner and an authorised signer. The former would have full equal access to the account, while the latter would only be able to perform certain actions, such as make payments, on behalf of the company.

How to open a joint business account

When opening a joint business account, each person you intend to have access to the account may need the following documents:

• Proof of identity, such as a passport or driving licence.
• Proof of UK address, such as a driving licence or mortgage statement.
• Partnership agreement (if this applies)
• Contract of co-partners (if this applies)
• Certificate of formation (if this applies)
• Evidence of the partnership trading address (if this applies)
• Previous business banking details
• Companies House registration number

You will also need to provide information on your business, such as the number of employees, estimated annual turnover, and the full business address.

Though it is possible to open a joint business account online, especially with challenger banks that have no high street presence, many providers will require you to come into a branch in person.

What services does a joint business bank account usually offer?

One of the biggest benefits of a joint business account is the number of services that come attached to the account. These can include, but are not limited to:

• Mobile and web access to your business account.
• Specialist support and advice from your banking provider.
• Integrated accounting software.
• Ability to automatically set aside money to cover taxes.
• Creating, sending and tracking invoices.
• Instant UK bank transfers.
• Automated expenses.
• Flexible business bank account overdraft.
• IBAN and SWIFT codes for international payments.
• Financial services Compensation Scheme FSCS protection.

These services are in addition to the usual features of a bank account, such as cash deposits, ATM withdrawals, standing orders, direct debits and more.

What are the benefits of a joint business bank account?

A joint business account can come with many advantages. These include:

• The ability for more than one person to access the business’s finances.
• Specialised financial advice and support from your banking provider.
• Simplified bookkeeping by separating your personal and professional expenses.
• Building a credit profile for your business, potentially opening up access to business finance.
• Making your business look more professional in the eyes of customers and suppliers.

What are the disadvantages of a joint business bank account?

If you are going into business with someone, it’s likely that you already trust them – but it goes without saying that you need to be able to trust the person you open a joint business bank account with.

Joint business bank accounts will usually give each account holder the same level of access and therefore your partner could withdraw cash or even run up debts without your consent.

By opening a business bank account with a partner, you will also be financially linked to that person, for example in terms of your credit score. It is worth bearing that in mind before you choose this type of account.

How much does it cost to open a joint business account and are there any ongoing fees/charges?

There tends to be no initial cost to opening a joint business account. However, depending on your provider, you may be subject to an ongoing monthly fee to keep your account active.

You may also incur other fees, such as on bank transfers or cash payments, but again, this will depend on the terms of your provider agreement.

Some banks may offer fee-free accounts for the first 12-months.

» COMPARE: Free business bank accounts

How to choose the best joint business bank account for me?

To be eligible for a joint business bank account, all persons associated with the account need to be UK residents, and must be over 18-years-old.

You will need to pass the provider’s anti-money laundering, know your customer and credit checks, and provide evidence of your trading activities.

Providers may not offer business bank accounts to certain kinds of businesses.

In order to decide which joint business account to apply for, you will need to work out what exactly you are looking for from your account.

Do you want free bank transfers and no monthly fees? Is it important to have an overdraft? Will you be accessing your account on desktop and mobile?

Our comparison table can help you select the best joint business account for your needs.

You can order the table by monthly fees, card purchases and bank transfers, as well as by featured products and company A-Z.

You can also click on ‘more info’ to find out the product services and eligibility criteria for each provider.

What are the alternatives to a joint business bank account?

Of course, if you are a sole trader, you won’t necessarily need a joint business account. Instead you can use a standard business bank account or your own personal account, depending on your business.

» COMPARE: Business bank accounts for sole traders

There are numerous other forms of business bank account you could also consider.

If you are a startup, you may want to look into a business bank account designed around your needs.

» COMPARE: Business bank accounts for startups

If you are looking to change from one business account to another, you may be able to benefit from the switch.

» COMPARE: Business bank accounts for switchers

And if you are concerned about how your credit history may affect your ability to open a business account, then you can find providers that won’t conduct a credit check.

» COMPARE: No credit check business accounts

Joint Business Bank Accounts