dougnet.biz started this topic @ 12:19 on 21/04/2007
Hi,
I am currently setting up another bank account with someone else. We are just about to setup a business bank account however when applying online for one its says are you:
sole trader
partnership
Limited
At this stage we are neither - Do I just choose 'partnership' because there are two of use or can we operate as 'sole traders' to start with.
We will eventually be going limited but this is still early stages and setting up the account is our first step
Thanks
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RE: business bank account
AstarothSolutions | 21/04/2007 03:33 PM
If there are 2 of you running the business then you are a partnership.... if one of you is running it and you the other is an employee/ advisor etc then you are a sole trader.
There is no requirement for any form of registration of a partnership (with a few exceptions) though it is obviously recommended to have a partnership agreement in place to avoid arguments on liabilities etc in the future
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RE: RE: business bank account
Cat Ryan | 27/04/2007 02:38 PM
When you open a partnership account like any other joint account the banks are going to insist that you are jointly & severally liable for any debt. That means that if one of you spend all the cash and put the account overdrawn, even if it is without the other one's knowledge or permission, they can go after both of you individually for the money (and take your house or other non-business assets). The same goes if one of you enter into a business agreement that goes wrong and looses the business money.
So you need to know that you are 100% happy to enter into this kind of agreement and that you can trust the other party. Bit like a marriage this one 
I would personally always choose the Limited Company option if there is more than one starting up. At least then you can only loose what put in, unless you do something illegal or against Ltd/director responsibilites rules.
Start Your Business Week by Week is a great book for working out the best structure and how to get the business going. The link is to the book on Amazon. The author also runs a brilliant support site at www.flyingstartups.com
Good luck, Catherine
