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Joint Website = Joint Bank Account?

by blackout17
9 replies
Just needing some quick advise really. Me and a good friend have been running a website for nearly 6 months now and the revenue is starting to fly in which is good! However would it be a wise thing to open up a joint bank account to store the money?
#account #bank #joint #website
  • Profile picture of the author Alexa Smith
    Banned
    I see that you're in the UK. I'm not an accountant or a lawyer, but I'd advise you to be very careful how you go about doing that. If you form a "business partnership" that isn't a limited liability company or limited liability partnership, you can end up with all sorts of liabilities you didn't expect (such as being responsible for each other's unpaid income-tax and other debts possibly arising in future through activities/situations totally unconnected with the "partnership"!!). Great care is needed, if not wanting a formal "partnership", not to do anything which can later be construed by anyone as comprising a formal "partnership".

    On the other hand, an off-the-shelf limited company/partnership, which may(???) be a better and safer way to do this, costs only £30 or so, I think? And might make opening a bank account easier, as well?

    Professional advice is needed, here! (Even advice from the Inland Revenue might help).
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  • Profile picture of the author RichBeck
    Originally Posted by blackout17 View Post

    Just needing some quick advise really. Me and a good friend have been running a website for nearly 6 months now and the revenue is starting to fly in which is good! However would it be a wise thing to open up a joint bank account to store the money?
    blackout,

    I am going to address how to deal with the revenue.... I know some will get off track into business organization, incorporation, etc. Since they are not relevant to your current question... That is for another day.

    I would never open a "joint account" for any business...... There is too much risk... I have seen seen these arrangements go south quickly.... One person cleans out all the money.... Another buys a $2,000 computer.... The list is endless...

    I would use something like JVZoo... Where you can simply have each transaction split 50/50 into your PayPal account.... That way, you are each in control of your "share".....

    If you must use a "joint account," I would have a written contract about when you take your "share" and how expenses are handled...

    Even then, that is dangerous.... If your business partner cleans out the account and blows the money, you can take him to court... But, the odds are you'll never see that money again.

    To make a short story long, find a solution like JVZoo....

    Take Care,

    Rich Beck BCIP, MCSD, MCIS
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  • Profile picture of the author Alexa Smith
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    Originally Posted by napoleonfirst View Post

    I think you should incorporate and get 50% of the shares.
    Are you qualified to be able to give such an opinion, Napoleon, with virtually no knowledge of the OP's financial situation? Do you have UK tax/legal expertise? :confused:
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  • Profile picture of the author salegurus
    Don't know what you mean by "money is flying in" but if i were you i would be seeking legal advice pronto on how to structure the partnership, accounts etc.

    There was a thread not to long ago about a guys partner who passed away leaving him locked out with no access to company funds etc because they did not setup their business correctly.
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  • Profile picture of the author DonnyBoy
    Blackout... Go out and get a legal advise from a lawyer... Making a Joint Bank account is a good process but before this, do consult a lawyer
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  • Profile picture of the author blackout17
    Goodness this seems all too complex. Whatever happened to trust.
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    • Profile picture of the author JohnMcCabe
      Originally Posted by blackout17 View Post

      Goodness this seems all too complex. Whatever happened to trust.
      When it comes to money, I follow the Reagan Doctrine:

      "Trust, but verify."

      The issue of business form and taxes/liabilities is more than I want to tackle, especially since we aren't in the same country.

      What I have found works well for any situation when multiple people have access to the same money (from business ventures like yours, to social clubs, to community associations, etc.) is to require two signatures on each check.

      The money flows in with no problem. When it comes time to take it out, you write one check to each of you and both of you sign them. Easy peasy.
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  • Profile picture of the author Richard Tunnah
    Alexa has nailed it. Get professional advice from a qualified accountant (many accountants will give you a free 30 minute consultation). So best get your local yellow pages or phone directory out and call a few.
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  • Profile picture of the author ldiaz117
    I keep mine separate
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