Are you planning to start a business? Whether you’re looking to set up a business or a trading company, you may be thinking about opening a business account. In the latter case, it is even your responsibility. In this article, we’ll take a look at how business and checking accounts differ, what benefits they may have for you, and conclude with advice on how to choose the best one.
A business account, also referred to as a corporate account, is a bank account designed for entrepreneurs and businesses. The main function of this account is to facilitate and streamline the management of financial transactions related to the business, such as receipts from customers, payments to suppliers, operating expenses, etc.
Self-employed persons are not required to have a separate account for their business. They are liable for their business with all their personal assets. However, this does not mean that they do not need a business account.
However, those who must have a business account are legal persons. This includes, in particular, various types of companies such as joint stock companies or limited liability companies, which usually put their share capital there, as well as various organisations such as associations, societies or foundations.
Let the experts help you. The company you set up, including the memorandum or articles of association, will be exactly what you need for your business from the start. If you buy an existing company, you can never know its past in detail and risk unwanted liabilities or other historical residue. With our company, you are guaranteed that nothing unwanted will be associated with your business.
A business account and a current account differ primarily in their purpose and focus, which corresponds to the needs of their users. The main differences are:
A business account is designed to manage financial transactions related to the business, such as payments from customers, operating expenses, payments to suppliers and other business transactions.
The current account is primarily used for normal personal financial transactions such as household expenses, income from business activities, accounting records for personal expenses, etc.
Business accounts are usually supplemented by specialized banking products and services for business. They often offer better visibility and filtering of income and expenses, simplified transactions or the ability to create and process invoices or link the account to another billing service.
On the other hand, a checking account includes only basic banking services for personal use, such as credit cards, transfers between accounts, online banking for personal transactions, etc.
Are you planning to set up an LLC? Learn how to choose the deposit and share capital for an LLC.
A business account can be set up by both an entrepreneurial natural person (self-employed) and a legal entity (e.g. s.r.o., a.s., cooperatives).
Current account is available only for natural persons.
Business accounts often have higher fees for maintaining and operating the account than current accounts. This is due to the greater load on the business account in terms of types and numbers of transactions, the high need for specialised services and the higher demands on bank support. Fees are usually in the tens to hundreds of crowns.
It is no longer a problem to set up a free business account with many banks. However, this usually only applies up to a certain number of transactions, etc. Similarly, you probably can’t avoid fees for various extra services.
A current account has lower or no fees because it only provides current services.
Choosing the best business account depends on many factors and your preferences. You should consider the following factors before you sign up for one:
The process for opening a business account varies from bank to bank, and it also varies based on whether you want to open it as an individual (self-employed) or a legal entity (a corporation).
If you are setting up a business account as an individual, you will probably only need to present your ID card and business license. Often you don’t even have to go to the bank in person, but everything can be done completely online.
If you need to open a business account as a company, the bank will require you to provide documents relating to your company (e.g. an extract from the commercial register, articles of association, articles of incorporation, a statement of beneficial ownership or a notarial deed). You will also need your personal identification document (e.g. ID card).
Again, many banks offer the possibility to open a business account completely online.
Where can I get an extract from the Commercial Register? You can find the answer to this question in our article.
A business account is designed to manage business-related financial transactions such as customer receipts, payments to suppliers and operating expenses. Legal persons are required to have a business account, while self-employed persons are not.
The main differences between a business account and a current account lie in their purpose and the services they provide. A business account offers specialised functions and provides a better overview of transactions. It often comes with higher fees, although some banks offer business accounts free of charge, but usually with certain restrictions.
When choosing an account, it’s important to consider the needs of your business, the level of fees and the features available. The process for setting one up is simple – self-employed people usually only need an ID and a business license, while corporations must supply company documents. Most banks today offer the option of opening an account online.
We will safely guide you through the entire process of setting up an LLC and provide all related services. We will handle everything quickly and professionally so that you can enjoy your own company as soon as possible. For a pre-determined price and throughout the country. You can pay only after the service is provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
