Company Name for a Sole-Trader

[JamesWW]

Hi Everybody,

I am just starting up and I have decided to go sole-trader for now and I am just wondering can I register my company name or do I have to wait until I am a Ltd company? Love to know the answer

 

[Scalloway]

If you wish to use a trading name you can just do it. You must disclose your own name on business documents. You should include your trading name in your bank account if you are likely to receive cheques made out to the trading name.

If you want to protect the name you may be able to register it as a trademark.

You can register a limited company now and leave it dormant to stop anyone else registering a company with your chosen name. You need to do a couple of annual filings to keep the company available.

 

[JamesWW]

If you wish to use a trading name you can just do it. You must disclose your own name on business documents. You should include your trading name in your bank account if you are likely to receive cheques made out to the trading name.

If you want to protect the name you may be able to register it as a trademark.

You can register a limited company now and leave it dormant to stop anyone else registering a company with your chosen name. You need to do a couple of annual filings to keep the company available.

Thanks Scalloway, I never thought about the trademark idea, I will have to look into that and I didnt realise i could have a ltd company and leave it dormant, something else I am going to have to look at. Thanks again

 

[obscure]

.... I didnt realise i could have a ltd company and leave it dormant, ....

You can... but it won't protect your trading name. You have to register a trademark to do that.

 

[Gecko001]

Just to be pedantic, if you are a sole trader, you can have business with its own name and you can refer to it as a buniness, or a firm, but you cannot call it a company. Hence the title of the thread is a contradiction in terms.

 

[Scalloway]

There is no legal prescription on the use of the word "company". The dictionary definition is

an organisation that sells goods or services in order to make money:

https://dictionary.cambridge.org/dictionary/english/company

 

[Gecko001]

I am maybe a bit old-fashioned as I used to work for sole trader businesses and partnerships. I also used to work for a public sector corporation. If say a new new employee referred to the business as a "company", they got a ticking off by the boss. With the sole trader firm which had 12 people working in it the boss was always reminding us that it was not a company and that he was personally responsible for any mistakes we made. In one partnership I worked in, which incidentally had 150 people working in it, the senior partner told staff to refer to the business as a "firm" and not a company.

 

[MyAccountantOnline]

...I didnt realise i could have a ltd company and leave it dormant, something else I am going to have to look at. ...

Do bear in mind you MUST complete accounts and annual Confirmation statements even for a dormant company. You will be fined if you dont submit the required accounts by the due date.

You really would be wise to get some professional advice on whether to trade as a sole trade or via a limited company it can make a big difference to the tax you pay.

 

[JamesWW]

Thank you Guys for all your input. I did talk to my accounant about sole-trader vs Ltd and both of us were torn on which one to choose, thats why I ended up choosing sole-trader, thinking I can also step up when needed. I well definitely be looking into the trademark

 

[DontAsk]

Just to be pedantic, if you are a sole trader, you can have business with its own name and you can refer to it as a buniness, or a firm, but you cannot call it a company. Hence the title of the thread is a contradiction in terms.

You cannot call it "Limited".

 

[obscure]

Just to be pedantic, if you are a sole trader, you can have business with its own name and you can refer to it as a buniness, or a firm, but you cannot call it a company. Hence the title of the thread is a contradiction in terms.

Just because people you worked with previously wanted their organisation referred to in a particular manner doesn't mean everyone else must do the same.

 

[Scalloway]

Thinking back to when I started in accountancy "& Co" (meaning and company) used to be popular for ending accountancy partnership names until the 1980's. there are quite a few on this infographic for Touche Ross & Co.

https://www.icaew.com/-/media/corpo...y-trees/family-tree-touche-ross-co.ashx?la=en

 

[TODonnell]

IMHO you start as a sole trader to see if you've got a viable business and then operate until it becomes very apparent to you and your accountant you need to go 'limited'.

I liked the idea that I had limited liability if it came to lawsuits.

As previous posters have pointed out, you must make sure your customers know who they're dealing with. You can't represent you're a limited company if you're not. 'Though I've personally never heard of someone being prosecuted for this?

Is there some kind of structural check that stops sole-traders from pretending to be companies, like, I dunno, problems with your bank, or summat?

 

[JamesWW]

Just to confirm I not trying to be something I am not and all my literature will state T/A on it. I just wondered if I was entitled to reg and name and logo as a sole trader or if I had to wait until I become a bigger entity. I didnt realise the word company would stir such a debate and I am not trying to act or state that I am Ltd. I hope this has cleared things up and lets spread some love, it is Friday after all

 

[Honey Blinds]

Being 'Limited' has its advantages, but for the vast majority of 'one man bands' there are too many disadvantages to make it financially viable