How difficult is it to open a business account?

MrSkipsey

As you may or may not know, I went BR in Nov 06.

I was discharged in July 07

Since then I have turned my life and finances around. Ihave enrolled in college and at present am set to pass with creit/distinction.
I have also started working for a decent company and this is where my topic needs answering.

I have to set up as a Ltd Company so I can get paid for the electrical work that I do for this company but am not sure how difficult it would be as I am and ex-BR and Iknow my credit score isnt that great 676/1000.

Can anyone advise me the best bank to use?

I am a small company (one man) and money will be paid electronically into my account. Iwill then have to take the money out using the cash points.

Why do all banks charge for this?

fiveyearplan

I think it is very difficult to open a business account but haven't been there yet. Why do you have to be a ltd co to get paid? Won't the accept a sole trader? For a sole trader you could have the money paid into your personal account. I'm a sole trader and have a personal account just for my business use.

maxmycardagain

can a discharged BR be a director of a ltd company?

i doubt you cant be paid if your "just" a sole trader

fiveyearplan

I don't see why you can't be paid as a sole trader. I've operated one of my businesses as a sole trader for 6 years. It doesn't always make sense to be a limited company. Maybe you should seek some advice. If you are trading as a sole trader there is nothing stopping you from incorporating at a later date.

fiveyearplan

maxmycardagain wrote: »

can a discharged BR be a director of a ltd company?

Yes, a discharged BR can be a director of a limited co.

backontheup

Many big companies only like to pay invoice to Ltd companies as it stops the possiblity of someone in accounts creating a 'Clarence Beaks' or other fake name and defrauding the company.

There will be no problem about starting up a company with yourself as a director now that you are discharged. You need to find a sympathetic bank - preferably the one that you are already banking with. You require no borrowing or credit facilities and it is simply for paying Inland Revenue, VAT (if applicable) and your salary.

Good luck - sounds like things are really going well for you

LesleyL_2

hi, I've heard that Alliance and Leicester business accounts are more flexible than many, might be worth checking them out.

Also, I have a prepaid Mastecard. They have the facility that "wages" can be paid direct on to the card. Wonder if that's a useful alternative for you?
The card is www.cashplus.co.uk

Lesley

maxmycardagain

how will anyone know its a business account?


bank transfers use sort code and account numbers and little else

MrSkipsey

Ok,...I am now a Limited company and am well chuffed.
The company I work for pay via PAYE, CIS, holding company or Ltd company.

PAYE and CIS are I think a step backwards in my situation and Ive been a holding company for the last two years and now with this new company Im with I think its best in my personal situation to go Ltd.

Im using my Abbey savings account, dont want to take the risk of being refused a business account due to bad credit.

The only downside I can see and have been told is that it doesnt look very professional not being paid into a business account.

Its just my wages going in, I wont be having any HP accounts or the like and I wont be hiring staff. So a business account isnt suited for me. Plus you get charged to use it!

Ill let you all know next week when I get paid if there was any problems!

fiveyearplan

Good luck!

TaxAvoider

Look into "Treasurer's Accounts" especially Halifax.

They are designed for holding funds of clubs/societies etc , but if you have a company registration number you are legally entitled to open one of these.

I had one and paid in "hundreds" of pounds of wages every week !!! they cannot refuse you and there is NO credit check as it is a passbook account with no overdraft facilities. You can set up bill payments at a branch and do these at a cashpoint.

This advice btw would cost you £100 if you went to one of these "debt help" companies :mad: