Business Bank Accounts for Partnerships

Getting on the same page

Opening a joint business bank account is one of the first practical steps for any UK partnership. It keeps business money separate from personal finances, supports clear record-keeping, and signals professionalism to clients and suppliers. For limited liability partnerships, it is not just good practice - it is a legal requirement. For general partnerships, it is strongly recommended because it removes ambiguity and helps avoid disputes later.

Banks and fintechs now make setup far quicker than it used to be. Most providers let each partner access an easy-to-use app, issue individual cards, and tailor permissions. You can automate payments, connect to accounting software, and, if you trade internationally, add multi-currency features. The right choice depends on your structure, the level of service you want, and the type of transactions you run.

Next step: gather IDs for all partners, your Companies House details if applicable, and your partnership agreement before comparing accounts.

Who benefits most

Partnerships and LLPs that share day-to-day spending and need transparency will gain the most. If you take joint decisions and want clean records for tax and VAT, a joint account keeps everything visible. Sole traders cannot open a joint business account unless they formally create a partnership with a clear ownership structure.

What it actually is

A joint business account lets multiple partners operate the same business bank account with defined roles and permissions. Each partner can usually have their own debit card, use the mobile or web app, and access statements and transaction data in real time. Features often include payment approvals, payroll tools, and integrations with accounting platforms such as Xero and QuickBooks.

In the UK, LLPs must hold a business bank account in the partnership’s name. General partnerships are not legally required to do so, but it is highly advisable for credibility and to keep tax records tidy. Many leading providers - including Barclays, Starling, Revolut, Tide, and Wise - offer options with no monthly fees for the first year, fast digital onboarding, and, where needed, multi-currency support for international payments.

How to open and run one

Expect a clear verification process. All partners or directors usually need to be UK residents, aged 18 or over, and provide proof of identity and address. LLPs and limited companies must be registered at Companies House, while general partnerships typically provide a partnership agreement alongside address documents. The bank will also ask about your business activity, ownership structure, and expected transaction volumes.

Once opened, you can assign access and controls. Many accounts allow dual authorisation for payments, spending limits per card, and alerts on unusual activity. Day to day, you will reconcile income and expenses, schedule payroll and supplier payments, and sync transactions to your accounting software. If you handle overseas clients or suppliers, multi-currency balances and international transfer tools can reduce friction and costs.

Simple rule: every partner should see every penny.

Why it matters to your partnership

The right account does more than store money - it helps prevent disputes. Shared visibility means fewer surprises, clear audit trails, and easier year-end tax work. For LLPs, holding a dedicated business account supports compliance and helps maintain the separation that underpins limited liability. For general partnerships, using a joint business account demonstrates professionalism to customers and lenders.

Financial protection also counts. Eligible business deposits are protected by the Financial Services Compensation Scheme up to £120,000 per banking group. For joint accounts, the limit applies per account holder, not per account, which can increase the protected amount where funds are eligible. Knowing your safety net helps you plan working capital with confidence.

Pros and cons at a glance

Watch-outs and common pitfalls

Every account holder is equally responsible for charges, overdrafts, and debts. That means one partner’s mistake can impact everyone. Set clear permissions from day one and agree how payments over certain amounts are approved. If a relationship breaks down, the account can be frozen until all parties agree, so include exit terms in your partnership agreement.

Introductory offers are attractive, but plan beyond the first 12 months. Some providers introduce monthly fees later, and international transfers or cash deposits may carry extra charges. If you pay staff, check payroll limits and cut-off times. For international activity, compare foreign exchange rates as well as fees to keep your total cost low. Finally, make sure your account fits your bookkeeping workflow so reconciliations are quick and accurate.

Practical alternatives

1. Separate sole accounts for each partner - not suitable for joint management and risks messy records.
2. A business account with view-only access for some partners - useful for oversight but not true joint control.
3. Escrow or client money accounts for specific projects - niche use where funds must be ring-fenced.
4. Credit card in the business name with spending limits - only addresses purchasing, not banking.

Your questions, answered

Q: Who is eligible to open a joint business account? A: Most banks require all partners to be UK residents aged 18+, with proof of ID and address. LLPs and limited companies must be on the Companies House register. General partnerships usually need a partnership agreement.

Q: Are funds protected if the bank fails? A: Eligible deposits are protected by the FSCS up to £120,000 per banking group. For joint accounts, protection is applied per account holder, subject to eligibility rules.

Q: Do digital banks offer the same features as traditional banks? A: Many digital providers offer rapid setup, strong apps, and automation. Traditional banks add branch support and broader lending options. Choose based on how you bank day to day and your need for lending.

Q: What fees should we budget for? A: Many accounts have no monthly fee for the first year, then a standard monthly charge. Watch for costs on international transfers, cash deposits, ATM use abroad, and premium tools.

Q: Can a sole trader open a joint business account? A: Not unless they form a partnership. Joint accounts require a clear ownership structure and all partners to be involved in the setup and verification.

How Switcha can help

Switcha will connect you with the best options for what you are looking for. We compare leading UK providers, highlight the fees and features that matter to your partnership, and help you shortlist accounts that fit your structure and workflow. Clear, impartial guidance so you can choose with confidence.

Important information

This guide is for general information only and is not financial advice. Product features and eligibility can change. Always check the latest terms with the provider and consider professional advice for your specific circumstances.