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A guide to helping you understand Self Employed business bank accounts
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Business bank accounts for those who are self-employed, contractors or freelancers
Self-employed, contractors, freelancers, these are all terms which are becoming increasingly popular in the business banking world. As more people begin to start their own businesses, there are a variety of new business products on the market. This includes bank accounts designed especially for those who are self-employed, contractors or freelancers.
Do self-employed, contractors, freelancers and sole traders need a business bank account?
You do not legally require a separate business account if you operate as a sole trader, although you will probably need one. If you have set your business up as a limited company, you will legally be required to open a separate bank account. This is because your business is legally responsible for its own finances, as it is a separate entity.
As a sole trader It can be tempting to avoid banking fees however, a personal account is not designed for business banking. Banks understand that those who are self-employed, contractors, freelancers or small businesses need low cost banking. So, it is likely that you will be able to find great deals, free banking periods and bespoke perks for your business.
Putting the cost aside, a business account will assist with managing your finances and help when calculating taxes. There are also benefits associated with various bank accounts, including accounting software and mobile banking apps.
Which are the best self-employed, contractor, freelancer bank accounts?
The best business account for you will depend on the type of business you operate and your regular banking transactions.
For example, if most of your transactions are conducted online, you may not need a high-street branch. Alternatively, if your business may need access to credit occasionally, you will need an account offering loans, overdrafts and credit cards.
The most common facilities offered by self-employed, contractor and freelancer bank accounts are:
Overdrafts
Online banking
Mobile banking apps
Debit cards
Post office cashier services
Branch banking
Interest on credit balances
Integrated accounting software
Foreign currency transactions
Free introductory banking
Compare self-employed, contractor and freelancer bank accounts
With so many potential self-employed, contractor, freelancer bank accounts to choose from, it may seem too complicated to compare them. Whatever business type you operate, we can help you quickly and easily compare potential business bank accounts. Our free, no-obligation comparison service is designed to help you find the best bank account for your specific requirements.
Simply select whether you are a start-up opening your first account or a business looking to switch. You will then be guided to a series of potential filters, which will narrow down the list of potential bank accounts. These filters include options such as those which do not conduct a credit check and accounts for start-ups.
Once you have selected the ideal account features, you will be able to compare the most important features. So, if you are looking for no monthly charges, a long free banking period or specific benefits, we can help.
Opening a self-employed, contractor or freelancer bank account
When you have decided to open an account, the process is designed to be quick and straightforward. The new challenger banks offer a completely online application process with accounts opened very quickly. If you decide to open a high-street bank account, you will need to visit a branch to finalise the application.
You will need to provide key personal and business details, including your name, address and estimated annual turnover. It can speed up the process if you have your proof of identification and proof of address to hand.
To find out more about our business comparison services, please contact our knowledgeable team today.