General Business Forum Brought to you by Salesforce

Two businesses in one?

Discussion in 'General Business Forum' started by matlob, Sep 12, 2020.

  1. matlob

    matlob UKBF Contributor Free Member

    86 16
    Hi

    Need a bit of guidance

    If you have a limited company that for instance does printing services can you also run a totally different business model within the same business. (i'm sole director/employee)

    Looking to possibly do camper conversions. Could I use the same main business and use a trading name or does it have to be set up as a business on it's own as it is so different?

    I have surplus cash in the business and looking at different ways to proceed moving forward and looking to do something different.

    Thanks
     
    Posted: Sep 12, 2020 By: matlob Member since: Apr 3, 2016
    #1
  2. Jass T

    Jass T UKBF Contributor Free Member

    36 1
    I think you can run both business under one limited company. But most people would separate them for accounting and liability purposes.
    If your new business starts losing money you don't want it to drag your other business down with it.
     
    Posted: Sep 12, 2020 By: Jass T Member since: Apr 22, 2019
    #2
  3. matlob

    matlob UKBF Contributor Free Member

    86 16
    Thanks
    I'd rather keep it as one as I have lots of surplus cash in the business and using this in the new venture would be beneficial. Not worried about putting the main business at risk as I wouldn't be using all the funds on it.
     
    Posted: Sep 12, 2020 By: matlob Member since: Apr 3, 2016
    #3
  4. Scalloway

    Scalloway UKBF Legend Free Member

    16,390 3,466
    You can run two businesses from one limited company. You need to set up your accounting system so that the income and expenses for each one is shown separately for Corporatoon Tax.
     
    Posted: Sep 12, 2020 By: Scalloway Member since: Jun 6, 2010
    #4
  5. The Byre

    The Byre UKBF Legend Full Member

    10,222 4,220
    I used to have a friend who had a music publishing company and he did campervan conversions - but did them as a sole trader.
     
    Posted: Sep 13, 2020 By: The Byre Member since: Aug 13, 2013
    #5
  6. Maxwell83

    Maxwell83 UKBF Regular Free Member

    708 185
    I was in a similar predicament when starting a new business but wanted total separation so set up a new ltd. co. I loaned new co. the money from old co., interest free, with the help of my accountant, so it I still got to use old co's surplus cash without having to personally withdraw it.

    New co. then just repaid the loan when profitable.

    You may want to reconsider doing it as one company - its not just about the amount of cash you are putting up initially, but also about liability - lets say you did a camper-van conversion and something goes wrong, and the customer sues the company. Your printing profits are now at risk and the cost could be much more than you ever intended to put into the new venture. But if the conversion venture was its own ltd company, then you don't have more money on the line than you have put in/it has made.
     
    Posted: Sep 13, 2020 By: Maxwell83 Member since: Aug 4, 2012
    #6
  7. matlob

    matlob UKBF Contributor Free Member

    86 16
    Thanks all.
    Main thing is using the surplus money as it is just being wasted in the bank on zero % at the moment with no way of getting it out without paying high tax. That and the fact that I want to do something else now really but will still need to run the original co for existing clients.

    If I loaned out to a new co what happens if it was to not make money. How would it impact on orig co if it doesn't receive the loan back?
     
    Posted: Sep 13, 2020 By: matlob Member since: Apr 3, 2016
    #7