Business Bank Accounts for LLPs

Getting your LLP banking set up the right way

A Limited Liability Partnership is a separate legal entity in the UK, so it must keep its money distinct from partners’ personal finances. That means opening a dedicated business bank account is not optional - it is a legal requirement for compliance and proper record keeping. The good news is UK banks make it straightforward, whether you prefer a traditional branch or a digital-only provider. In this guide, we explain what to prepare, how to choose, and the practical features that matter once you are up and running.

We will walk through documents you will likely need, the options for partner access and authorisations, standard protections on your deposits, and useful tools like accounting integrations and international payments. We will also flag common pitfalls that slow applications down. By the end, you will know the next steps to open the right account for your LLP with confidence.

Who will benefit from this guide

This is for UK-based LLP partners, finance leads, and administrators setting up or switching a business bank account. If your LLP is newly registered at Companies House or you are revisiting banking to cut costs or improve features, you will find practical, regulation-aware guidance here.

What an LLP business account actually is

An LLP business bank account is a dedicated current account held in the LLP’s legal name. It separates business income and expenses from partners’ personal funds, supports day-to-day payments, and helps you stay compliant with UK rules for distinct entity accounting. Because an LLP is not the same as its partners, using a personal account is not compliant and risks blurred records, tax headaches, and potential liability issues.

Modern UK business accounts for LLPs typically include online and mobile banking, business debit cards, and the option to add multiple users with defined roles. Many providers integrate with popular bookkeeping and accounting software like Xero, QuickBooks, and FreeAgent, which helps you reconcile transactions, set up rules, and reduce manual entry. Some accounts also provide international features, such as multi-currency balances and competitive foreign exchange, which can be valuable if you work with overseas clients or suppliers.

How to open one without the hassle

Banks need to verify your LLP and the people behind it. Expect to provide proof of identity and UK address for all partners who will have access, along with your LLP agreement, certificate of formation, and Companies House registration details. Each partner usually must give consent and complete identity checks. Having these documents ready speeds things up considerably.

Application routes vary. High street banks may offer in-branch appointments or online applications, while digital banks like Starling and Tide provide fast, fully online onboarding with in-app document uploads. Many LLPs can complete applications in minutes if everything is prepared. Once opened, you can set account mandates to control who can view, make payments, or approve transactions - useful when you want checks and balances across multiple partners.

If you are switching from another bank, the UK’s Current Account Switch Service can move payments, direct debits, and your balance on your chosen date, with minimal disruption. This makes it easier to pursue better pricing or features without risking missed payments.

Why getting the right account matters

Choosing a fit-for-purpose business account protects your LLP and makes daily finance simpler. First, it helps you comply with UK requirements to keep business funds separate from personal money, supporting clean audit trails and accurate tax returns. Second, practical features save time - accounting software integrations reduce errors, real-time notifications help with cash flow, and user permissions increase control when multiple partners are involved.

Security matters too. Deposits in eligible LLP business accounts are protected by the Financial Services Compensation Scheme up to £120,000 per banking group, offering a safety net for your working capital. Cost control is another consideration. Some providers offer no monthly fees, while others bundle perks that may justify a charge depending on your needs. Finally, if you trade internationally, accounts with multi-currency and competitive FX can prevent avoidable charges and delays.

A well-chosen LLP account balances compliance, cost, control, and convenience.

The upsides and trade-offs

Pitfalls to avoid and signals to check

Application slowdowns usually come from missing documents or incomplete partner details. Before you start, confirm each partner’s ID, proof of UK address, and Companies House information is accurate and up to date. If a partner lives abroad, check eligibility early - many providers require UK residency for partners who will access the account as part of their anti-money laundering and KYC controls. Where residency is an issue, explore providers with more flexible criteria before you apply.

Think carefully about user permissions. Setting clear mandates helps prevent errors and fraud, but overly restrictive rules can delay payments. Strike a balance with dual approvals for higher-value transfers and sensible daily limits. Review FSCS protection per banking group and hold larger balances across multiple groups if you want to spread risk. If you rely on accounting software, confirm the integration is native rather than via manual exports, and test feeds early to avoid reconciliation surprises.

Finally, scrutinise fees. No monthly fee is attractive, but check payment charges, international rates, and any costs for cash handling. Ensure the switching service is available, and plan the switch date to avoid payroll or VAT deadlines.

Other routes to manage LLP finances

1. Multi-currency business accounts for global clients - hold and pay in multiple currencies.
2. Specialist accounts for higher cash use - suitable if you deposit cash frequently.
3. Premium tiers with relationship managers - for complex needs and bespoke limits.
4. Fintech accounts alongside a high street account - combine speed with branch access.
5. Deposit or savings accounts - hold surplus funds separate from operating cash.
6. Merchant services and payment gateways - take card payments and settle to your account.

Common questions, clear answers

Q: Is a separate business bank account legally required for an LLP? A: Yes. An LLP is a distinct legal entity, so funds must be kept separate from partners’ personal money.

Q: What documents will we need to open the account? A: Typically ID and UK address for partners, your LLP agreement, certificate of formation, and Companies House registration. Each partner must consent and pass checks.

Q: Can all partners have account access? A: Yes. You can add multiple partners with defined permissions and mandates, so not everyone needs full control.

Q: Are our LLP deposits protected? A: Eligible deposits are protected by the FSCS up to £120,000 per banking group, providing a safety net for your funds.

Q: Can we open and manage the account online? A: Many providers offer fully digital applications and ongoing app-based management, with some charging no monthly fees.

How Switcha fits into your decision

Choosing banking can feel complex, but it does not have to be. Switcha will connect you with the best options for what you are looking for, highlight fees and features in plain English, and help you compare providers side by side so you can pick with confidence.

Important information

This guide provides general information for UK LLPs. It is not financial or legal advice. Always check provider terms and eligibility, and consider professional advice tailored to your LLP’s circumstances before making decisions.