The best joint business account for small businesses

If you run your business with other people, you may want to consider opening a joint business bank account.

A joint account can make it easier for you and your business partners to manage your finances. Read on to find out how joint accounts work and an overview of some of the best options for your business.

What is a joint account for business?

Much like a personal bank account, a joint business account allows several people to deposit and withdraw money.

Most joint business accounts will have the same features as a standard business bank account, such as:

access to overdrafts and loans
online banking
codes for international payments
protection from the Financial Services Compensation Scheme (FSCS)
access to savings accounts
expenses, invoices, and accounting management
financial support and guidance from the bank

However, it’s important to note that not all banks offer joint business accounts.

What is a partnership business bank account?

You may also see joint accounts called partnership business accounts or joint venture accounts.

A partnership business account refers to the partnership business structure.

A business partnership is where several partners share the responsibility for a business. Read our guide to general business partnerships for more information.

Do I need a joint business account?

Whether you need a joint business account depends on the structure of your business.

If you operate as a sole trader or general business partnership, you’re not legally required to separate your business finances.

However, if you run a limited company or a limited liability partnership, it’s a legal requirement to have a business bank account.

Read our guide on the best business banks for more information on the difference between personal and business accounts.

If you do decide to open a business account, whether you choose to open a joint account is up to you.

Here are some of the reasons you might open a joint business account:

it’ll be easier to manage cash flow if all the money is in one place, especially if your business is growing
tax returns and accounting will be simpler if you only need to report from one account
your business will appear more professional to customers, suppliers, and employees
you could improve your business’s credit score, making it easier to get finance

What are the downsides to opening a joint business account?

If you’ve started a business with someone, it’s likely you trust each other. However, it’s important to remember that when you open a joint account, all partners will have equal access to the business’s money. This means one partner could withdraw money without permission of the others. That being said, some joint accounts give you the option to ask the permission of all account holders before money is withdrawn.

Joint accounts also financially link people together. Bear in mind that if one of your business partners has a poor credit score, this could affect yours.

Although having a joint account makes managing finances easier, switching or closing an account can take longer as it’s likely that all account holders will need to authorise the decision.

How to open a joint business account

When applying for and opening a joint bank account, everyone you want to have access to the account will need to provide:

proof of a UK address, such as a bank statement or utility bill
identification, such as a driving licence or passport

Depending on your business structure, it’s likely you’ll need to provide:

certificate of formation
partnership agreement
evidence of the partnership trading address
contract of co-partners
Companies House registration

Other business information that you’ll probably need to provide includes:

current or previous business banking details
estimated annual turnover
total number of employees

If you want to open an account with a challenger bank, you may be able to apply online. Traditional high street banks are more likely to require you to apply in branch or over the phone.

If you already have a business bank account, you may be able to simply add other people to create a joint account.

You may also be able to grant a level of access to your business account to some employees without making them a full account holder.

Which bank has the best joint business account?

Here are some of the best-known joint business accounts compared:

Bank	Fees	Key features	Other information
Starling	No monthly fee or bank transfer fee	Shared app access and individual cards for partners	Directors will need to be UK residents
HSBC	£6.50 monthly fee, no transfer fees	Easy access to foreign currency, suitable for businesses with overseas partners	£200 incentive for switching
Santander	£4 monthly fee, no transfer fees	Partners can access several accounts from a single platform	Cashback option
Barclays	No monthly fee or bank transfer fee	All account holders can manage the business finances	No fees for overdrafts under £500
Countingup	£3 monthly fee and 30p transfer fee	Integrated bookkeeping, invoicing, and tax calculation with day-to-day banking	No arranged overdraft option

Joint business account – agree your roles

When you open a joint bank account with your business partners, it can share the load of managing your business finances.

However before you start using the account, it’s important that you agree roles and responsibilities to make sure everything runs smoothly.

Some of the things you’ll need to consider are:

choosing a main administrator for the account
agreeing who can withdraw funds and make transfers
having a plan in the event the business closes or a partner leaves

What features are you looking for in a joint business account? Let us know in the comments.

More finance guides for small businesses

Ready to set up your cover?

As one of the UK’s biggest business insurance providers, we specialise in public liability insurance and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?

Start your quote

Matthew C/peopleimages.com/stock.adobe.com