Bank account for 'hobby'/business

jaxwat

HI all, I'm just looking into starting a hobby / business, and am having trouble working out exactly what type of bank account would be best for it. I want a seperate account, and I want it in the business name. The problem is, what I'm setting up isn't really a business yet, just a hobby that might - MIGHT - make a few pounds. Basically, its something I enjoy doing and as long as I break even, I'll be happy. Checking through the steps to open a business account, I see I need to provide turnover figures, investment amounts, salary info and such like, none of these really apply to me yet.

The HSBC looked interesting as they offer an account for clubs or charities or non-profit organisations, but I'm not sure I come under any of those headings, as if I did make any profit, well, I'd want to spend it! Or at least reinvest it. Does that count?

I thought about just using Paypal to handle all transactions, but with a lot of of market being abroad, the handling and currency conversion fees make that a non-starter, the same goes for handling credit card payments.

Again, the HSBC offer a really good business account, fee free, even currency conversion is free for the amounts I estimate, but as said above, not sure if I would get one of these for my hobby.

Then I thought about a personal account 'trading as'... but I don't really want my own name to be plastered about too much - I know that sounds odd, but I have a pseudonym that I prefer to use.

Do any of you have any thoughts on the best way to go?

Thanks for reading.

steve1980

HSBC offer 18 months free banking. Ideal for any starter business.

jonesMUFCforever

If it is you as a sole trader and you won't be paying in loads of cheques and cash just open a second account with your current bank.
Just say it is to keep second income separate.

steve1980

jonesMUFCforever wrote: »

If it is you as a sole trader and you won't be paying in loads of cheques and cash just open a second account with your current bank.
Just say it is to keep second income separate.

Why? An 18 month free business account is surely better? You can have payments made to your business rather than payable to yourself (which just looks like a scam)

It costs nothing to set up, nothing to run and you avoid the possibility of the bank finding out you're actually running a business from a personal account and whacking on a load of charges.

jonesMUFCforever

steve1980 wrote: »

Why? An 18 month free business account is surely better? You can have payments made to your business rather than payable to yourself (which just looks like a scam)

It costs nothing to set up, nothing to run and you avoid the possibility of the bank finding out you're actually running a business from a personal account and whacking on a load of charges.

They can only 'whack' on charges if these are in the T&C of the account.
At the moment OP is starting on a hobby business which might or might not take off.

I know of no sole trader who would not have payaments paid to him/her rather than a business name.

If it does take off then that is the time to open a business account IMO when he can take full advantage of the 18 month free banking.
If it peters out then just close off the second account and transfer it back to your main account.;)