Bank account for soletrader

H

homeowner

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If you operate as a small sole trader do you need to :

1. have a seperate account for your business or can you use your own current account.

2. register the business with cro or can you just operate without informing cro or revenue of your business.

THe business is expected to have a very small turnover (a couple of grand tops) and I wont be charging VAT.
 
You dont need to register your sole trader business with CRO if you use your own true name.

Check it out at www.cro.ie
 
Many years ago when my husband became a sole trader, the bank insisted he keep a separate account.
 
for ease of management it would be better to have it seperated from your personal accounts.
 
johndoe64 said:
for ease of management it would be better to have it seperated from your personal accounts.
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I concur. Although initially the OH continually paid for things out of his personal account e.g. stationary etc. It's a nightmare if not kept separate.
 
Thanks for the replies. Presumably I will need to register with cro first and then show some proof of company name to bank to open account as it wont have my name on it.
 
I think you may be confused ( or i may be!!) . if you are operating as a sole trader then you dont need to go to the cro to open a bank account! You just need to go into you bank and tell them you want to open a bank account that is seperate to your personal account and call it e.g. mary foley business account ...rather than your standard home/current account.... in your last message you mention a company name..if indeed you have a company name ( then you probably have a company ie ltd ) in which case opening a bank account will be more work..getting memo and arts and proof of business address. etc
 
if your a sole trader you are not a company, they are two totally separate entities.it would be prudent to keep a separate bank account
 
It's very easy to go to the CRO and register a business name. This will enable you to open a business account rather than a different personal account. For piece of mind I would think it is definetely worth doing this. BOI have a very good business start up package with no fees for 1st 2 years etc...... No need to even begin thinking about a company.
 
I set up another account to put my money into in order to keep it seperate from personal account. This is essential so that you have money to meet your tax bill also.

As far as I am aware, You don't need to set up an actual business account if you are only a sole trader. I think you would have higher bank charges by doing this and who needs that?
 
NeedingHelp said:
As far as I am aware, You don't need to set up an actual business account if you are only a sole trader. I think you would have higher bank charges by doing this and who needs that?
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Exactly - I am a sole trader and I just opened an Ulster Bank personal account for my trading expenses. I'm operating under my own name (which incidentally is quite unique), so why spend money on business a/c fees, when a personal account is just as effective.
 
CelloPoint said:
Exactly - I am a sole trader and I just opened an Ulster Bank personal account for my trading expenses. I'm operating under my own name (which incidentally is quite unique), so why spend money on business a/c fees, when a personal account is just as effective.
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Depending on your business structure, those business a/c fees might be worth it for what they're buying.

I've a T/A account from AIB and there have been times when not having
to wait 5 days for cheques to clear for example has been well worth the slightly higher fees.

Everyone's got slightly different needs.

NB
 
Hi Guys,
I have recently set up as a sole trader (part time thing). I have a business name which I am going to register on CRO later today. However...I got my first payment from a client who issued the cheque to the business name...I am using one of my personal accounts solely for the business. My question is...how can i lodge the cheque? Do I have to show the bank a certificate of registration from CRO?
 
jabber2006 said:
... I have a business name which I am going to register on CRO later today. ...
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Until you register it with the CRO it's not a business name - it's just a name you made up.
jabber2006 said:
..I am using one of my personal accounts solely for the business. My question is...how can i lodge the cheque? ...
Click to expand...
You can't, our upstanding legally compliant bankers frown on that kind of thing, it might get them in trouble.

You'll need to open an account for "jabber's Part-time Makey-up Business Name".
jabber2006 said:
... Do I have to show the bank a certificate of registration from CRO?
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Yes and probably many other random pieces of paper they think might be needed, especially if they suspect you don't have them.

Congratulations on getting paid - Rule 1 on all start-your-own-business courses, "Get Paid Large Amounts Frequently".

Sorry - I forgot to mention, do you know if you can you do the T/A thing - "jabber trading as jabber's Part-time Makey-up Business Name", as a bank account name?
 
money man said:
I think you may be confused ( or i may be!!) . if you are operating as a sole trader then you dont need to go to the cro to open a bank account! You just need to go into you bank and tell them you want to open a bank account that is seperate to your personal account and call it e.g. mary foley business account ...rather than your standard home/current account.... in your last message you mention a company name..if indeed you have a company name ( then you probably have a company ie ltd ) in which case opening a bank account will be more work..getting memo and arts and proof of business address. etc
Click to expand...

If you are setting up a business account the bank will require CRO documents as proof of the business name unless you are trading in your own name. It only costs c. €20 if you register online.
 
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