Partnership bank accounts

A partnership bank account lets two or more partners manage a business’s income and expenses in one place, keeping finances separate from personal accounts. 

These accounts typically allow all partners to access the account, make payments, and view transactions, reflecting their shared responsibility for the business’s finances.

They can be used by ordinary and limited partnerships, and are designed to help with day-to-day money management, bookkeeping, and preparing for tax obligations.

Whether a partnership needs a business bank account depends on its legal structure.

• Limited Liability Partnerships (LLPs) are separate legal entities, so they must have a business bank account. The account is held in the name of the LLP, not the individual partners, reflecting the business’s separate legal and financial identity.

• General partnerships, where partners share profits and liabilities, are not legally required to open a business account. The business isn’t separate from the partners, and profits are taxed as personal income. Even so, many general partnerships find it helpful to have a dedicated business account.

• Limited partnerships (LPs) have at least one general partner, who manages the business and has unlimited liability, and at least one limited partner, whose liability is capped and who usually cannot manage the business. While not legally required, an LP account can keep finances organised, especially for the general partner.

Some banks may also ask for a partnership agreement, sometimes called a deed, before opening an account, which sets out each partner’s responsibilities and financial arrangements.

A joint business account gives all partners a single place to manage the partnership’s finances, making day-to-day money management simpler and more transparent. 

By keeping business income and expenses separate from personal accounts, it’s generally much easier to track cash flow, monitor spending, and ensure everyone is working from the same financial hymn sheet.

Key ways a joint account can help your partnership include:

• Shared access: All partners can view transactions, make payments, and manage the account according to agreed permissions.

• Clear record-keeping: Transactions are recorded in one place, simplifying bookkeeping and making it easier to prepare for Self Assessment and other tax obligations.

• Professional appearance: Using a dedicated account shows clients, suppliers, and lenders that your partnership is organised and serious.

• Integration with tools: Many accounts offer online banking, apps, and accounting software integration, helping partners stay on top of finances on the go.

• Cash flow support: Some accounts provide overdrafts or credit options (subject to eligibility), giving partnerships flexibility when managing short-term expenses.

A joint business account doesn’t just make life easier: it can help avoid confusion, reduce disputes, and support the smooth running of the partnership.

Partnership accounts include features designed to make shared financial management easier and more transparent:

• Multi-user access and control levels: Each partner can access the account, with permissions set for viewing, paying, or withdrawing.

• Clear bookkeeping and tax support: Keeps income and expenses separate from personal finances, making accounting and Self Assessment simpler.

• Business tools: Invoicing, payment scheduling, and integration with accounting software to streamline everyday finance tasks.

• Dedicated business support: Some banks offer account managers or specialist advice for partnerships.

• International payments: Low-cost transfers and fee-free overseas spending for partnerships that trade abroad.

These features help partnerships stay organised, reduce errors, and make day-to-day money management smoother.

Opening a joint business account for a partnership requires providing information for all partners. While the exact requirements vary by provider, most will ask for some or all of the following:

• Proof of ID and address for each partner, such as a passport or driver’s licence and a recent utility bill.

• Certificate of formation, if your partnership is a limited liability partnership (LLP).

• Partnership agreement, if you have one, outlining each partner’s responsibilities and profit shares.

• Evidence of the partnership’s trading address, such as a utility bill or lease agreement.

• Companies House registration (if applicable).

• Estimated annual turnover to give the bank an idea of the business’s scale.

• Contracts or agreements between co-partners, if relevant to the bank’s requirements.

Having these documents ready for all partners can make the application process quicker and smoother.

• Choose a suitable bank and account: Look for an account that meets your partnership’s needs, including multi-user access and tools for managing finances.

• Prepare the required documents: Collect ID, proof of address, partnership agreement, and any other documentation the bank requests for all partners.

• Apply together: All partners usually need to submit the application at the same time, either online or in branch.

• Verification: The bank will check each partner’s information and documents.

• Account approval: Once approved, all partners can access the account according to the agreed permissions, reflecting the partnership’s shared responsibility.