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  • #984862
    sjl81
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    Hi all,

    if registered with the abr as an “individual / sole trader” and registering a business name via asic, is there any reason why I can’t use a dedicated personal bank account as the account through which I do all business dealings, no personal dealings will be made via this account.

    When asking banks about setting up eftpos facilities I am getting hit with you must have a business bank account.

    If I can indeed use a personal account, then is there any reason why eftpos settlements can’t be directed to a personal acoount?

    Thanks
    Sarah

    #1150019
    nighttax
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    • Total posts: 172
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    With Eftpos facilities they usually require you to set up a business account i.e. Joe Bloggs Trading as XYZ services. Its an excellent way of making extra fees.

    If you use say Suncorp, you can open a Business Bank account that has no fees if your balance is above $2000. Probably other banks have similar offers.

    Don’t know if the ATO wants a business account set up for income tracking through bank to ATO reports. That could be another reason

    Hope this helps.
    Evan

    #1150020
    LucasArthur
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    Hi Sarah,

    Interesting question.. to answer your question of “is there any reason why I can’t use a dedicated personal bank account as the account through which I do all business dealings, no personal dealings will be made via this account.” the answer really is no.. although, it does provoke a lot of questions:

    – The ATO/Government may require payments to go into accounts that have an ABN attached to it.. even if it is SARAH t/as SARAH… for laundering and tax evasion purposes..

    Eftpos, tricky one too.. you mention 2 parts to your comments on eftpos.. first is the actual application of a merchant facility and the other is directing payments into a personal account:
    – part 1: (and merchant experts such as eWay may add to this i hope) Merchant facilities are an intriguing bank service, you have to ‘prove’ your worthiness to hold one and to be a business (registered with ABN etc) is tantamount in the application process from what i have been led to believe.. it is also like applying for credit as you have access to others money so integrity is so so important.. also the fact you can refund at any time (regardless of payment going in on occasions) is another reason.. You almost have to jump through hoops if a new business or not bricks and mortar to get a service sometimes…

    – part 2: There may be regulations for laundering etc etc whereby funds need to be deposited into an account with the same name (legal ownership) of the merchant facility or some tie to it…

    This is only what i have been ‘led’ to believe, so i do look forward to some additional input from relevant experts in these areas..

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1150021
    jrundle
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    Hi Sarah

    You can get Eftpos Credit Card Facilities paid into a Personal Account if you are a Sole Trader, however generally when you go into a Bank branch and try to get these facilities, they will often want you to have a Business Account.

    I have worked for many of the Banks in the past as a Third Party salesperson, organising Merchant facilities for businesses.

    If you are still looking let me know and I can get you some pricing etc for you.

    Cheers Janet
    0448 978 084

    #1150022
    James Millar
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    sjl81, post: 172234 wrote:
    Hi all,

    if registered with the abr as an “individual / sole trader” and registering a business name via asic, is there any reason why I can’t use a dedicated personal bank account as the account through which I do all business dealings, no personal dealings will be made via this account.

    When asking banks about setting up eftpos facilities I am getting hit with you must have a business bank account.

    If I can indeed use a personal account, then is there any reason why eftpos settlements can’t be directed to a personal acoount?

    Thanks
    Sarah

    From a tax perspective it will not be an issue. Irrespective of how the bank class the account It will still be attached to your TFN – there is no diversion of transactions to third parties (so for example any surveillance by AUSTRAC would not be subverted).

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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