A private account and a business account in a sole proprietorship

Service Business

Company account and private account. The fact that a bank account is nowadays a necessary tool for running a business should no longer raise any doubts. An example of the necessity to have a bank account is the settlements of entrepreneurs with the Social Insurance Institution or the tax office - currently they are made only in a non-cash form. The question that is often asked by future and current entrepreneurs is not whether a bank account is needed, but rather whether they can use a private account for business purposes.

Company account and the law

There are no provisions regulating this issue in Polish law. The choice depends mainly on practical conditions - both on the part of the entrepreneur and the bank. What are the consequences of choosing both of these options - the answer in the article.

Advantages of a private account

Connecting a private account with a company account is a perfect solution for people who intend to run a small business, in which the main transactions will be transfers to the Tax Office and ZUS. In such a situation, there is no obligation to specifically document and account for the transactions carried out. The convenience of the entrepreneur is most often in favor of this solution - there is no need to organize a trip to the bank, remember another PIN number, or incur additional fees related to running a company account.

It is worth mentioning that if the transactions performed as part of business activity exceed PLN 15,000 euro, then the entrepreneur is obliged to carry out such operations via a bank account. This does not mean that it has to be a separate company account - a person running a business can make such transactions using a private account.

Advantages of a corporate account

The main advantage of setting up a separate company bank account is the separation of private and business-related transactions. First of all, it helps in keeping the accounts, especially when the entrepreneur also obtains income from another source. Secondly, in the case of fiscal control, officials only have access to transactions on the bank account provided in CEIDG, which may save nerves (access to private operations could prove inconvenient, e.g. when a person receives money from the family).

Attention! In the event of a change of the account number, the entry in CEIDG should be updated within 7 days from this event.

Setting up a company account may be associated with specific profits - often banks provide separate rules for this type of account, for example related to loans or other products targeted only at companies. Moreover, if running a separate company account involves additional fees, it should be remembered that it is possible to include them in tax deductible costs. For this purpose, you only need a bank statement, you do not need to obtain other proof of incurring such expenses.

It may be a good solution to set up a company account in the same bank where a person running a business has their private savings and checking account. This will avoid fees associated with transferring funds between your accounts.

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The question of interest

Funds accumulated in both private and corporate accounts generate interest that is taxed. This is where the stairs begin, because the so-called Belka's tax (flat-rate 19% tax). In the case of a business account, interest is the so-called other income from economic activity, they are therefore taxed in the same way as the basic income of the entrepreneur. Therefore, the profitability of collecting interest on one of these accounts depends on the chosen form of taxation.

There is no one perfect solution - which option will be more profitable for a given trader depends on many factors. It is worth considering the option of setting up a separate bank account for business, due to the fact that there is such a wide range of company accounts on the market that choosing the perfect option for yourself should not be associated with great difficulties. It may be a good idea to consider the options offered by a bank in which we already have a private checking and savings account.

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