Does a sole proprietorship need a business account?

The short answer

A sole proprietorship is not a separate legal person. The business is you, so there is no general legal requirement to keep its money in a separate business account. A limited company (ApS or A/S) is different: its capital has to sit in an account in the company's own name. See Business account for an ApS.

But the law does require your bookkeeping to show what belongs to the business, and from 1 January 2026 sole traders with more than 300.000 kr. in net turnover two years in a row must keep their books in a digital bookkeeping system. A separate account is the cheapest way to meet both.

Why keep it separate anyway

• The VAT return gets simple. Every entry on the account is business, so there is nothing to sort before you settle VAT.
• Your accountant bills fewer hours. Most of an accountant's time on a small business goes on finding and matching entries. A clean account is the cheapest hour you never pay for.
• Bookkeeping integrations work. A bank feed into e-conomic, Dinero or Uniconta only helps if what comes through is business.
• You can see how the business is actually doing. A balance mixed with rent and groceries tells you nothing about whether the business makes money.
• Your bank's terms. Many private accounts may not be used for business activity, and a bank can ask you to move it.

When it stops being optional in practice

There is no single threshold, but four moments make a separate account close to unavoidable:

• You register for VAT. That is required once turnover passes 50.000 kr. in twelve months, and from then on you settle VAT every period.
• You pass 300.000 kr. two years running. Then the digital bookkeeping requirement applies.
• You take card payments. Settlements from a terminal or webshop land daily, and matching them against sales in a private account is where the hours disappear.
• You hire. Payroll, A-tax and holiday pay belong on an account where they can be followed.

What you need to open one

• 1 A CVR number for the business.
• 2 MitID Erhverv.
• 3 Valid ID for you as the owner.
• 4 A short description of what the business does and where the money comes from.
• 5 An estimate of turnover and how you take payment.

The questions about activity and turnover are not suspicion. Under the anti-money-laundering act every bank and payment provider has to know its customer, so you will get them wherever you apply.

Your right to a basic account

For years small businesses were turned away by banks. Since 1 January 2025 businesses and associations have a right to a basic business account: one that lets you receive, hold and pay money without having to buy other products.

A bank can still refuse if you cannot meet its ordinary identification requirements, if money laundering is suspected, or if you lack a permit your business needs. But the refusal has to be in writing with the reasons, and you can take it to the complaints board set up for the purpose.

What it costs

The cheapest package at a Danish bank typically costs 135–289 kr. a month, plus 0–5.000 kr. to set up. For a sole trader the entry-level package is usually enough: one account, one card and a handful of transfers. We have compared the actual prices from the banks' and neobanks' own pages in What does a business account cost?, and ranked on first-year price in The cheapest business account.

SEJR Konto costs from 249 kr. a month on the Starter plan, with the 3.500 kr. setup fee waived. What sets it apart is not the price but the reconciliation: if you take card payments with SEJR Pay, the sale and the payout carry the same reference, so the month closes without a night of matching.

Checklist

• 1 Is everything on the account business, from day one?
• 2 Does the account feed straight into your bookkeeping system?
• 3 What is the first-year total, setup included?
• 4 If you take cards: can the settlements be matched against sales without doing it by hand?
• 5 Is there a lock-in, and what does it cost to leave?

This guide describes the general rules. It is not tax or legal advice; ask your accountant about your own situation.

Frequently asked questions

Does a sole proprietorship need a business account?

As a rule there is no legal requirement. A sole proprietorship is not a separate legal person, so you can run it through a private account. Keeping it separate is almost always recommended anyway, because bookkeeping, VAT and the annual accounts get far simpler, and many banks do not want business activity on a private account.

Can I use my private account for my sole proprietorship?

Technically yes, but every entry then has to be sorted into private and business afterwards, which makes the VAT return and the accountant’s work slower and dearer. Check your bank’s terms too: many private accounts may not be used for business.

What do I need to open a business account?

Typically a CVR number, MitID Erhverv, valid ID and a description of what the business does and the turnover you expect. Under the anti-money-laundering act the bank has to know its customer, so the questions are standard.

Can the bank turn me down?

Since 1 January 2025 businesses have had the right to a basic business account. A bank can still refuse if you cannot identify yourself, if money laundering is suspected, or if you lack required permits, but the refusal must be written and reasoned, and it can be taken to a complaints board.

Should the account be in my name or the business’s?

Legally, a sole proprietorship is you. The account is therefore tied to you as the owner with the business’s CVR number on it. You are personally liable for the business, and a business account does not change that.

What does a business account for a sole proprietorship cost?

The cheapest package at a Danish bank typically costs 135–289 kr. a month plus 0–5.000 kr. setup. SEJR Konto costs from 249 kr. a month, with the 3.500 kr. setup fee waived.