Most Appropriate Business Structure?

[Lewis Hanson]

Hi All!

If I am going to run multiple web/app businesses, would I better registering one ltd company and then setting the different websites/apps up as different trading names under the one ltd company?
Alternatively would it better to set each website/app up as it's own ltd company and if so should I create a holding company for them too?
I appreciate there are some variables which could alter the answers/advice you can provide but generally speaking, what is the optimal option in terms of set up costs, tax & accounting, liability etc
Also when trademarking a trading name, I understand this protects somebody else from using it, but can they still register the trading name as a ltd co. w/ companies house?

 

[Mr D]

Trademark and registering at companies house are two different things.
If you want to secure the limited company name at companies house then create the company yourself.

 

[mattk]

A limited company comes with a number of reporting requirements. Unless you are planning on preparing the accounts yourself, you will need to use an accountant and they will charge around £800 + VAT to prepared the accounts.

Unless each of your sites/apps is generating significant revenues, multiple companies can soon before a drag on your profits.

Therefore, at least in the short term, I'd suggest a single company which everything operates under.

As someone with a history of developing sites and apps, I would strongly recommend starting off small and keeping your costs low. What you think is a great idea can often generate minimal revenues for a multitude of reasons. Of course there is a risk of not applying for trademarks etc. however there is also a risk of you spending a great deal of money setting everything up and then being left seriously out of pocket.

 

[Lewis Hanson]

Thanks for the reply. Very useful advice!

 

[Alison Moore]

There are lots of costs and overheads involved in running separate companies so I would suggest starting as one and see where it goes. If the apps take off and you feel the need to separate them at a later date you can do it then.