Business bank account for a sole proprietorship – is it necessary?

In short: The accounting provisions of the Code of Obligations do not require a separate business account. However, you must record income, expenses and your financial position and keep private and business clearly separate. A dedicated business account makes this much easier.

What the law requires

A sole proprietorship with less than CHF 500,000 in revenue must record income, expenses and its financial position. The principles of proper bookkeeping apply accordingly, in particular:

• complete, accurate and systematic recording,
• a receipt for every entry,
• verifiability.

For your tax return, you also need statements of private withdrawals and contributions.

Why separation matters

The federal SME Portal stresses that private and business matters must be kept strictly apart. Private living costs must not run through the business. For assets used for both – such as a car – a proportional split is needed.

What a separate account gives you

• You can see at a glance what your business earns and spends.
• Bookkeeping becomes simpler: almost every transaction is business-related.
• Private withdrawals and contributions become clearly visible.

Whether you need a dedicated “business account” or whether a second private account is enough depends on your bank’s terms.

Important

Even with a separate account, a sole proprietorship remains legally tied to you: you are liable with all your assets. The account separates your bookkeeping, not your liability. To limit liability, you need a different legal form: Sole proprietorship or GmbH?