My Daughter

Graeme

Hi

My daughter has started an online ltd business online, she is having a problem setting up a business account because of past payment de-fault, her request to me is can the business account be set up in my name, she has promised to complete all her tax returns and keep her liabilities in control.

I would have no involvement in the company, just have the name on the account and transfer any monies to her personal account

What risks as an individual am i settingb myself up for

burg

A limited company is it's own legal entity and would need it's own bank account. I would suggest approaching different banks. Sometimes having another director may help but as long as the company isn't requiring credit then it shouldn't be that difficult to obtain an account. I have past bankrupts with bank accounts no problems.

If she is a sole trader as your later part suggests she may be then although in theory moving the income around may not be a problem there are problems that it may lead on to. For one who is really self employed? What happens if there is an investigation and bank statements are requested? Plus much more.

I suggest shopping around

deanshepherd

Some of my clients had the same problem. If no bank will assist then you could get your daughter to appoint you as director, get her to resign, open a bank account, have a discussion on ethics with yourself(!), then reverse the appointments.