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Do you need a bank business account for a small online business?


scotty2hotty95
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Me and my freind who are both 15 years of age are intrested in setting up a small online business but were not sure if we have to have a business bank account or not to do it? Does anyone know because I can't really seem to find out on the web.....

Thank you....

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Me and my freind who are both 15 years of age are intrested in setting up a small online business but were not sure if we have to have a business bank account or not to do it? Does anyone know because I can't really seem to find out on the web.....

Thank you....

Personally, I would wait a few years before setting up a business. Businesses require time and effort and while you're still at school you can't give time and your effort should be on your exams.

Remember also, you cannot enter into a credit agreement until you're 18, so small business loans and the like are out of the question. I'd also recommend registering with Companies House if you're serious about it, you may need to be registered to obtain a business bank account. I don't believe they are required although there might be a hidden law about paying HMRC.

You could set up a paypal type system whereby you sell online and money enters a standard bank account.

But remember one key saying when selling:

Where's the profit?
Edited by MikeBrum
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But remember one key saying when selling:

That is certainly important, but surely the most important thing to remember is that;

Time wasters will be reported.

Remeber to keep your local constabularys Non-emergency number to hand' date=' just incase you have some times wasters giving you grief :aok:

Back to the OP, if you wish to accept card payments online, directly in to your bank account then yes you would. However you could not take advantage of business over-drafts etc. Infact, at 15 can you even open a "normal" account? You may need to [i']employee[/i] a trustee to take care of the financial side on your behalf.

As mentioned, your better off just using Paypal / NoChex.

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That is certainly important, but surely the most important thing to remember is that;

Remeber to keep your local constabularys Non-emergency number to hand, just incase you have some times wasters giving you grief :aok:

Back to the OP, if you wish to accept card payments online, directly in to your bank account then yes you would. However you could not take advantage of business over-drafts etc. Infact, at 15 can you even open a "normal" account? You may need to employee a trustee to take care of the financial side on your behalf.

As mentioned, your better off just using Paypal / NoChex.

I believe he can open an account, however, no credit cards and credit systems. Nothing involving credit, business phone contracts ect.

Anyway, if you need for business sales, marketing and profit management help, call Rich Allen on 0777...

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Me and my freind who are both 15 years of age are intrested in setting up a small online business but were not sure if we have to have a business bank account or not to do it? Does anyone know because I can't really seem to find out on the web.....

Thank you....

As it would be a joint partnership, then yes!

Pop down to your local bank and make an appointment to see the business manager. Don't let your age put you off.

As mentioned, you will not be offered any services that have credit involved.

Good Luck!

I'd also recommend registering with Companies House if you're serious about it, you may need to be registered to obtain a business bank account.

Not true.

Edited by pmtts
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Not true.

Ah, I said may was I wasn't certain.

Oddly, they don't have much advice for online businesses online.

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Ah, I said may was I wasn't certain.

Oddly, they don't have much advice for online businesses online.

Not sure what Bank website your looking at, but Barclays for example have a very informative business account section on their site.

It's always best to book an appointment with a business manager, they can offer far more services and advice.

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Please help if you can. Constructive criticism too, don't poo-poo these boys' ideas even before they get off the ground. We have no idea what it is they intend to do, it might not interfere with school at all - which, I will say, is vital to complete to the best of your abilities.

But please no one rubbish them, thank you.

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When I was 17 I participated in a school programme called "Young Enterprise". I became the MD of a real, registered company for a year.

It was an incredible experience, and we actually ended up turning a profit. However, even with the school giving us time during school to participate (it was one of our scheduled lessons) we found it hard work.

If you are truly interested, I'd recommend speaking to your schools' Business and Enterprise department - they may be able to point you in the right direction or even get you on a Young Enterprise course!

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  • 2 weeks later...

Me and my freind who are both 15 years of age are intrested in setting up a small online business but were not sure if we have to have a business bank account or not to do it? Does anyone know because I can't really seem to find out on the web.....

Thank you....

No you don't need to and I would recommend trying to stay clear of business bank accounts for as long as you can. They have advantages to them but you end up paying for a lot of services that your normal consumer bank account would allow you to do.

I'd also recommend registering with Companies House if you're serious about it, you may need to be registered to obtain a business bank account. I don't believe they are required although there might be a hidden law about paying HMRC.

You do not need to register with Companies House and I wouldn't recommend you do, you should get in touch with HMRC and register as being self employed. If you want to go into a LLP then you'd need to get in touch with Companies House.

I'm not sure what it is you're offering as a service, but you might come up problems with paying tax (since you have no NI number being only 15) and your legal status when entering into contracts isn't great either because a lot of businesses won't trade with persons who are under 16-17.

Edited by scottuk
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Guys/Gals,

Go for it, try anything you think will be successful. Pleas remember the following:

"Just because it hs always been done a certain way, does not make it the best way to do it", strive for the best and ###### the old, and idiotic.

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