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This information will help us source offers and tailor your experience on the website and help in our advocacy efforts with government.

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Why do we need this information?

This information will help us source offers and tailor your experience on the website and help in our advocacy efforts with government.

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Why do we need this information?

This information will help us source offers and tailor your experience on the website and help in our advocacy efforts with government.

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This information will help us source offers and tailor your experience on the website and help in our advocacy efforts with government.

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Do you need a business bank account

When starting a business you may consider setting up a business bank account to manage your business finances.

Do I need a business bank account?

If you're operating as a sole trader, you don't have to open a business bank account, but it's a good idea to do so.

If you're operating as a partnership, company or a trust, then you must have a separate bank account for tax purposes.

No legal requirement for sole traders

If you're operating as a sole trader, there is no legal requirement for you to open a business bank account. You can use an existing bank account in your personal name.

If your business operates as a partnership, company or a trust, then it must have a separate bank account for tax purposes.

Can't remember if you're registered as a sole trader, partnership, company or trust? Search ABN Lookup to find your entity type. You can search using your personal name, business name or ABN.

Benefits of a business bank account

While there is no legal requirement for sole traders to have a business account, it's still a good idea to open one.

With a business account, you'll find it easier to:

  • track and control your business expenses and income
  • extract the information you need to give to your accountant or to do your tax return yourself when tax time comes around.

It also helps to present your business in a more professional manner when dealing with your customers.

One account for business and private use

If you use one account for both business and private purposes, you must clearly identify any personal payments or expenses in your cash book. See the ATO's page Separate business income from personal income for more information.

 The article was first published on business.gov.au

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