Opening a joint business bank account is crucial for any entrepreneurial partnership. From streamlining financial management to boosting collaboration and transparency – it could be your key to success. But this is easier said than done.
Dealing with complicated and inefficient banking systems wastes time and money, hindering future growth. Choosing the right provider for a joint business bank account can significantly enhance your company's financial capabilities.
This blog will cover everything you need to know about joint business bank accounts. We’ll review the positives, negatives, the required application documents and why 3S Money is the best choice. Let’s dive in!
What is a joint business account?
A joint business account is an account held by two or more people in a company. As with joint personal accounts, joint business accounts allow two or more people to deposit, withdraw, and manage funds.
Do I need a joint business account?
This will depend on the type of partnership agreement your entity operates under.
A business bank account isn’t required if a company operates as a general partnership. This is because all partners have 100% liability for the business's financial status. When a business is structured as a Limited partnership, opening a business account is legally required. This is to ensure that personal and professional finances are held separately.
What are the benefits of a joint business account?
Opening a joint business account brings multiple benefits to any business. Not only do they enhance your cash management - but they also encourage collaboration, shared responsibility, and transparency.
Here are five benefits of opening a joint business account:
1. More than one person can access company funds.
2. Business finances are consolidated into a single account.
3. Managing business overheads, taxes, and recurring international payments is easier.
4. Mistakes are easier to spot when financial responsibility is shared.
5. Your business will appear more professional to customers and lenders.
Things to consider when opening a joint business account
Opening a joint business account is a significant step in any company’s journey. It’s a decision that shouldn’t be taken lightly.
Here are three things to consider before opening an account:
1. Ensure you fully trust your partners and share the same goals.
2. Clearly define financial roles and responsibilities.
3. Choose an account with an operational structure that suits your business needs.
Opening a joint business account requires open communication, trust, and a shared vision for success. Take the time to address these considerations to ensure a solid foundation for your joint business venture.
What documents do I need to open a joint business account?
Opening a joint business account requires more paperwork than an individual account. Each account holder must submit documentation to prove their identity, registered address, and role in the organisation.
These generally include the following:
Proof of registered business address
Proof of identification (such as a passport or residency permit)
A Company Registry Extract (no older than six months)
Shareholder Register (ideally in a PDF file format)
Remember - different providers may ask for other documents when opening your account. You can read more about all the documents and information you need here.
Where can I open a joint business account?
Almost every high-street and challenger bank will offer some form of a business bank account. The type of accounts they provide can vary based on local legislation, licencing restrictions, and risk appetite.
We know that opening a joint account with a traditional provider will be a lengthy, complicated process. In addition, the services offered won’t be flexible or innovative and will cost significantly more than expected.
Does 3S Money offer joint business accounts?
We don’t offer joint business accounts – we offer something better. Firstly, we’re not a bank but an electronic money institution (EMI). Secondly, we combine private banking experience with innovative Fintech solutions to challenge all high-street and neo-banks.
Our International Business Account is perfect for business owners looking to take their payment capabilities to the next level. We never hide our fees and pricing or make decisions that don’t have our client’s best interests at heart.
Here are six reasons why 3S Money is the right solution for you:
1. Shareholders and directors accepted from 190+ countries.
2. Add up to 10 account users free of charge.
3. 100% global remote account access.
4. Manage multiple business entities through a single account.
5. Collect, send, and exchange payments in 65+ currencies with no transfer limit.
6. A dedicated Client Manager and expert support team.
The future of partnership business accounts
It’s time to look beyond than bank and embrace alternative neo-banking solutions. 3S Money is the perfect payment partner for businesses looking to scale new markets. We believe in building meaningful relationships with every client – understanding their short- and long-term needs.
As the chosen payment provider for hundreds of global businesses, we’ve processed over $3b in client payments and counting. We’re building a fairer, faster, and more caring financial world to help businesses feel at home in every market.
What are you waiting for? Start your application today and receive pre-approval in under 15 minutes.
Joint business bank account FAQs
Does a joint business account affect your credit score?
Potentially, yes. If the partner you are opening a joint business account with has a poor credit score, this may impact your own. However, this will vary based on the account provider’s score-checking procedure.
Does every business need a business bank account?
All limited companies are required to hold a recognised business account. This doesn’t apply to sole traders or general partnerships.
Can I open multiple joint business accounts?
Yes, you can hold as many business accounts as you like. However, some providers may limit the number of accounts you can operate simultaneously.