Sisters Business Registered At Parents House - Any Risks

[kiteboy]

Hi all

This has been a slight concern for me for a while now (ever since my son was born in fact). Basiclaly my sisters business (mobile hairdressing) has been registered at my mothers address now for years 20+ years infact

Ive just been sorting out car insurance again for my sister tonight and again when comming to pay for the insurance the card she used is registered at our parents address and this has prompted this posting - surely sshe should update the buisness / credit cards address?????

Could this be a potential issue long term - Im mainly worried about inheritence - could she make some sort of claim as the business is registered at parents address?? - I hope not of course and doubt that she would but as I have a family to worry about now Im thinking of the angles!!

I "think" the main risk is that she racks up debt against my parents address maybe - she hasnt in all this time that we are aware of

However it doesnt seem right to me that her business is registered there after all this time!

Thanks for any advice

 

[Ian J]

Could this be a potential issue long term - Im mainly worried about inheritence - could she make some sort of claim as the business is registered at parents address?? - I hope not of course and doubt that she would but as I have a family to worry about now Im thinking of the angles!!

No risk of that otherwise all of the accountants who have their clients use their address as a business address would be very worried

I "think" the main risk is that she racks up debt against my parents address maybe - she hasnt in all this time that we are aware of

However it doesnt seem right to me that her business is registered there after all this time!

There is a risk that if the business ran into trouble that debt collectors could turn up at your parents' door but the only creditor that a mobile hairdresser would have is likely to by HMRC for tax and Vat.

Whether or not it's right to use her parents address is a matter for the family as there are no rights or wrong and I'm guessing that she lives in a rented property and the lease says "no businesses to be run from there"

 

[kiteboy]

Thanks for the advice Ian - she has her own property so as far as I can see theres no reason why the business address shouldnt be changed now - as long as theres no implications apart from debt then it shoould be ok - may need to speak with parents perhaps

 

[CRI-Inv]

My accountant once told me to have my registered address at my home address. Whilst I could claim mileage from the registered address to the factory, the implications (as Ian) mentioned, are the potential debt collectors.

 

[TODonnell]

Be careful when dealing with family + business. Personally, I'd let sleeping dogs lie. If there have been no problems in 20 years(!), it is probable, but not guaranteed, there will be no problems in the future.

Unless you make one

 

[JEREMY HAWKE]

Yes I agree with TODonnell forget it the debt is only secured against the business owner unless it is a limited company then Its never secured against anybody !