Open a business account under the age of 18
Are you younger than 18 and dreaming of starting your own business? Then you may quickly run into the question of whether you can open a business account if you are a minor. A business account is important because it keeps your personal spending and business income neatly separate. However, it is not always a given that you can simply arrange this as a minor.
In this article, you will discover how it works, which rules apply and where you can go if you want to open a business account under the age of 18. We will also show you how GoDutch can help you with this, so that you can fully focus on doing business without unnecessary hassle.
Can you open a business account if you are a minor?
Yes, it is possible to open a business account if you are underage. However, you cannot arrange this entirely on your own. Under the law, young people under the age of 18 may not simply enter into contracts or incur financial obligations independently, because they are considered legally incapable; opening a business current account is included in this as well.
However, there are exceptions. If you are 16 or 17, you can apply for emancipation through the district court. This gives you permission to make certain business decisions as if you were an adult. It can also sometimes be an option to start a business together with an adult, for example a parent. This may still give you access to a business account, provided you meet the bank's or provider's conditions.
Legal rules and age limits for a business account
If you are younger than 18, you cannot simply open a business account yourself. Under the law, you are legally incapable. That means you may not independently make important decisions with financial or legal consequences, such as entering into a contract or opening a business account. This is arranged to protect young people.
If, as a minor, you still want to open a business account, there are fortunately options. For example, it is possible to apply for emancipation. With emancipation, you are given permission to make certain business decisions as if you were an adult. This means, for example, that you can open a business account and run your business independently. How this works exactly and how to apply for emancipation, we explain below.
Applying for emancipation through the subdistrict court judge
When you are younger than 18, the law sees you as legally incapable. That means that without the permission of your parents or guardian, you may not make important decisions, such as opening a business account. This can be an obstacle if you are already seriously involved with your own business and want to handle your administration professionally.
Are you 16 or 17 years old? Then you can submit a request to the court to obtain emancipation. Emancipation means that the subdistrict court judge declares you partly legally capable. With that permission, you may independently make certain business decisions, such as opening a business account or signing contracts that are important for your business.
Applying for emancipation goes through the subdistrict court judge and is an official legal procedure. Once emancipation has been granted, you can take the correct documents to a bank or a business service provider such as GoDutch to open a business account for your company.
Where can I open a business account under the age of 18?
Opening a business account when you are under 18 is possible, but not everywhere. Only a limited number of banks and providers accept underage entrepreneurs. At ABN AMRO, ING and Rabobank, you can often go there if you are 16 or 17 and have applied to the district court for emancipation. Without emancipation, it is not possible to open a business account with these banks.
In addition to the traditional banks, GoDutch also offers you the possibility of applying for a business account if you are underage. You must then meet the same legal requirements, including applying for and being able to prove emancipation. Because rules and conditions can vary by provider, it is wise to always contact them in advance to check exactly what is possible in your situation.
Can't I just use my personal account?
Maybe you’re wondering whether you can simply use your existing personal account for your business. In theory, the tax authorities allow this, because they do not require entrepreneurs to have a separate business account. However, in practice this often turns out not to be a good solution.
Most banks include in their terms and conditions that a personal account may not be used for business payments. If they discover that you’re using your personal account for business income and expenses, they may challenge you about it or even block your account.
Moreover, a separate business account gives you much more clarity. You can immediately see which income and expenses belong to your business, making your bookkeeping much simpler and clearer. You also come across as more professional to customers and suppliers when you make payments from a business account bearing the name of your business. So it is not only practical, but also wise to open a business account instead of using your personal account.
Opening a business account with GoDutch as a minor
Would you like to get off to a good start as a young entrepreneur straight away? Then at GoDutch you can apply for a business account that has been specially developed to arrange your administration and payments in a smart and simple way. Even if you are under 18, you can open a business account with us, provided you meet the legal conditions and rules, such as applying for emancipation from the subdistrict court.
GoDutch helps you manage your business clearly and efficiently from day one. Within a few hours, you will have access to your IBAN and a payment card, and from the app you can arrange all your payments, invoices and administration in one place. Would you like to know whether you can open a business account with GoDutch in your situation? Then get in touch and ask about the conditions that apply to you.
