Self-employed entrepreneurs: is a business bank account compulsory?

Are you wondering whether, as an auto-entrepreneur, you should keep your business account separate from your personal account?

While auto-entrepreneur status offers a great deal of flexibility and allows you a certain amount of freedom in the exercise of your business, you should be aware that you need to respect a few conditions in order to comply with your status, particularly with regard to your bank account.

Is a business bank account compulsory for auto-entrepreneurs/micro-entrepreneurs?

Dedicated bank account

The 2015 Social Security Financing Bill introduced theobligation for professionals under auto-entrepreneur status to dedicate a bank account to their business.

A dedicated account

As a result, many self-employed professionals have opted for a dedicated bank account. In fact, the simplified microsocial scheme does not require professionals to have a business account.

You can open a bank account specifically dedicated to your business. It will enable you to manage all your professional financial flows.

The difference between a dedicated bank account and a business account

When you run your business as an auto-entrepreneur/micro-entrepreneur, the revenues you collect must be deposited in an account other than your personal account.

Direct debit

Currently, only companies are required to have a business account. The term "business account" refers to the bank account used by a company to manage its financial flows. The business account serves as a direct debit for the company, providing it with a bank account number (Relevé d'Identité Bancaire - RIB), enabling it to collect sales and pay suppliers.

The difference between a dedicated account and a business account lies mainly in the fact that a business account is specific to companies, so an individual cannot have a business account. The dedicated account is a current account that you can open as an individual, and which will be identified as the account you use as an auto-entrepreneur.

Think about bank charges

Another difference lies in your account management fees. These fees will be much higher for a business bank account, and your advisor won't be the same either. As a company, you'll be dealing with a professional account manager, whereas for a dedicated account, you'll be dealing with a bank advisor.

Finally, there is also a difference in access to banking services.

With a dedicated account, you won't have access to a business bank card or a business bank loan.

What can I do with my auto-entrepreneur bank account?

Your auto-entrepreneur bank account is primarily used to manage the financial flows linked to your business. In this sense, your account will be used primarily for :

• Receive your revenues
• Deduct expenses and purchases related to your business
• Withdrawals for your remuneration
• Use your means of payment in your company's trade name
• Obtaining credit

So, like any company, your auto-entrepreneur bank account is used to manage the financial side of your business, with a separation between your personal account and the account linked to your activity.

Is it worth opening a business account?

Before you open a business account, think carefully about what you're going to use it for. If your bank account is only used to collect your sales and manage your expenses, a dedicated account will be more than sufficient.

If, on the other hand, you need dedicated advice or access to specific banking services, then a business bank account will be useful.

Note that your bank account, whether business or dedicated, will enable you to do much the same thing. Since your dedicated account is a perfect substitute for your business account, you don't necessarily need to opt for the business account. What's more, you'll save a considerable amount on bank charges.

Conclusion

As you will have understood, as an auto-entrepreneur, you are subject to a number of regulations concerning the collection of your sales and the management of your financial flows.

So, in order to comply with the specificities of your status, you must have an account dedicated to your activity.

Separate personal and business accounts

While your account enables you to collect your income, it also enables you to manage the expenses associated with your business. This account allows you to separate your personal and business accounts, and provides you with a RIB for your auto-entreprise.

If the question arises as to which type of account you should choose, note that the differences between a dedicated account and a business account for auto-entrepreneurs are not obvious. A dedicated bank account is perfectly suited to your auto-entrepreneur activity, and saves you money on bank charges.