Trading As (Sole Trader)

[Lmilton94]

Hi all, I'm looking at becoming self employed within the next couple of months, and I have a question about trading names as a sole trader.

I understand that on all official documents invoices and such I will need to put "John Smith trading as Company Name"


But I have found this example bellow

"For example, if John Smith has a shop called Happy Family Bakers the disclosure requirements would apply to him; were he to call his business Mr Smith, John Smith, or J Smith, they would not. The same would apply to a partnership. If John Smith and David Jones have a business partnership called Happy Bakers the disclosure requirements would apply; were they to call their business J Smith and D Jones, or Smith and Jones, they would not."

My question is, if the trading name is for example Smith's Bakery, would this fall under the disclosure requirements? As it still has the persons surname within the trading name.

 

[fisicx]

Your trading name can be whatever you want. Don’t even need to mention your name. So you could call it ‘Bobs Bakers’ when your name is Derek.

 

[StevensOnln1]

The name Smith's Bakery doesn't identify who the proprietor is (there is no way of knowing from the name alone whether the owner's name is Smith or something else) so I'd have thought there would need to be a sign or prominent notice somewhere identifying John Smith (or J Smith) trading as Smith's Bakery.

 

[Mark T Jones]

Think as your trading name as a nickname - all your friends call you it, but you can't use it on official documents.

 

[fisicx]

I get my car fixed at Rees Bros. There has never been a Rees or any brothers.

 

[Alan]

I understand that on all official documents invoices and such I will need to put "John Smith trading as Company Name"

What isn't specified is where or how big - it just needs to be there, some where.

So you can have a massive logo and name in 48point Rees Brothers ( for example) at the top of an invoice, and over your door. And in tiny print right at the bottom some text like Jim John trading as Rees Brothers and a tiny little notice under your door bell etc.

 

[eteb3]

I will need to put "John Smith trading as Company Name"

Are you really looking to be a sole trader, or to trade through your own company? iirc rules for companies are more stringent, because you have to put people on notice about the limited liability.

I can never find it, but there is a legal requirement to give a written note of your details to any person proposing to do business with you who asks for one, even as a sole trader. So if someone says, "do you have a card?" and you hand one over without your real name on there, you won't have met that legal requirement. Wherever they are, those regs give a remedy to the opposite party if you don't do that properly.

Besides any legal duties, beware that you will find it very difficult (if not impossible) to enforce contracts that you enter into in your trading name, because your trading name is not the name of a person. And ofc a "contract" needn't be very formal; might be a quotation, statement of work, or just an email.

 

[paulears]

My business used to say on the cheque book I rarely use now Paul Johnson trading as and then my business name, but when online banking and payments started getting common, it went a bit wrong - people would try to pay me but the sort code and account number never matched - Paul Johnson didn't work, nor did trying to add trading as. My bank just asked if I'd like the account name to be the business name - customers typing this in now can find me and pay me easily now, so my invoices are now all in the business name - my name is on there, with contact details but I removed trading as - nobody seems to need it now as as I read the rules, you just need to make things obvious to customers - so no LTD, or company number - just the name of the business, the same name as in on my office sign, cheque book, bank account and Google. It's been like this a long time now and it works fine. I don't make it hard to find my name - and nobody gets confused.

 

[eteb3]

The rules:

Companies Act 2006, Part 41, Chapter 2:
Disclosure required in case of individual or partnership

The answer to your precise question is in s. 1200, the first one listed under there. "Smith's Bakery" is a trading name, so you have to make the full disclosure.

 

[Alan]

The answer to your precise question is in s. 1200, the first one listed under there. "Smith's Bakery" is a trading name, so you have to make the full disclosure.

Unless your forename is Smith's and surname is Bakery

 

[phantompainters.london]

Simply put, the name of the legal entity is required on official documents and place of business. The trading name alone is not a legal entity as such and must be a legal person i.e. your real name, full name of Limited Company or LLP. If you are a Ltd or LLP it is for your own protection to ensure full disclosure otherwise any protection is severely limited or conferred onto the directors personally.