Can a sole trader keep the same business bank account if they incorporate?

cashferret

If a sole trader has a bank account for their business that's separate from their personal one, and they then incorporate, can they keep the same bank account?

And if they can, are there any reasons not to? I found this article when googling that says, "Setting up a new account for your newly formed limited company, rather than simply using the one you used when you were a sole trader, will help you avoid any potential nasty tax surprises". But I don't know what issue this refers to.

bris

The ltd company is it's own legal separate entity, so needs it's own account.

cashferret

Yes indeed, but the question is whether the sole trader business account could become that account!  )

Retired_Minky

No. I've just been through this. You need to set up a separate account specifically for the Limited Company. 

Sandtree

What you are really asking is can you give your bank account to someone else. In principle there is no reason why you couldn't give your parents or your company your bank account but in practice I doubt there is a single bank that allows it.

Thrugelmir

cashferret said:

 But I don't know what issue this refers to.

Blurring the lines between the personal and corporate activity.  

MattMattMattUK

cashferret said:

If a sole trader has a bank account for their business that's separate from their personal one, and they then incorporate, can they keep the same bank account?

And if they can, are there any reasons not to? I found this article when googling that says, "Setting up a new account for your newly formed limited company, rather than simply using the one you used when you were a sole trader, will help you avoid any potential nasty tax surprises". But I don't know what issue this refers to.

A limited business has legal personhood, just as you can not transfer your bank account to another person, banks do not allow you to transfer a personal account to a company.

cashferret

Thanks, everybody, this has been very helpful!