Using two seperate ltd companies or just one?

Discussion in 'Accounts & Finance' started by anonuk, Aug 3, 2018.

Thread Status:
Not open for further replies.
  1. anonuk

    anonuk UKBF Regular Free Member

    302 44
    We have a ltd company that was set up about 4 years ago now and is plodding along. We are starting to do a new range of products under a different brand, which will have its own website, social media accounts, an so on. I've also registered the ltd company name which my original intent was to keep as a dormant company to prevent anyone else from registering it but have since set up a bank account as well.

    What I'd like opinions on is whether or not to use the new ltd company and bank account for the new brand or would I be better off using the existing ltd company? Obviously, if I use the new company it means two lots of accounts, tax returns, etc, but what would be better from a business standpoint?

    Any input/advice happily welcome.
     
    Posted: Aug 3, 2018 By: anonuk Member since: Feb 27, 2014
    #1
  2. Jazz1966

    Jazz1966 UKBF Contributor Free Member

    36 3
    I faced this dilemma a year ago. Have you considered using the same Limited Company but having a Trading Name? I have a company called (say) 'XXXX Limited' but for other activities I have a trading name say 'YYYY'. On my documentation for YYYY is states 'XXXX Limited Trading as YYYY'.
     
    Posted: Aug 3, 2018 By: Jazz1966 Member since: Jun 19, 2018
    #2
  3. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,605 468
    What do the accountants advise?
     
    Posted: Aug 3, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #3
  4. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,303 2,500
    It's very difficult to answer your question with so little information but certainly one important consideration is what you intend to do with the business. If the plan is to sell it having a separate company may make a sale easier.

    Dont forget to prepare the accounts for your company - even if it's dormant, accounts are still required and you'll incur penalties if they are late.
     
    Posted: Aug 3, 2018 By: MyAccountantOnline Member since: Sep 24, 2008
    #4
  5. anonuk

    anonuk UKBF Regular Free Member

    302 44
    I have considered a ‘trading as’ and not averse to it.
     
    Posted: Aug 3, 2018 By: anonuk Member since: Feb 27, 2014
    #5
  6. anonuk

    anonuk UKBF Regular Free Member

    302 44
    No interest in selling either companies really. In terms of accounts, it’s much easier (and cheaper) to file accounts with zero in every column haha.

    If you need more info in order to offer an opinion I’d be happy to answer questions.
     
    Posted: Aug 3, 2018 By: anonuk Member since: Feb 27, 2014
    #6
  7. anonuk

    anonuk UKBF Regular Free Member

    302 44
    Still really unsure what to do for the best with this. Would welcome any further views/opinions.
     
    Posted: Aug 6, 2018 By: anonuk Member since: Feb 27, 2014
    #7
  8. Scalloway

    Scalloway UKBF Legend Free Member

    16,589 3,513
    It is really up to you to weigh up whether starting a new company is worth the hassle or if it is simpler having a separate brand under your existing company.
     
    Posted: Aug 6, 2018 By: Scalloway Member since: Jun 6, 2010
    #8
  9. TODonnell

    TODonnell UKBF Ace Full Member

    1,405 215
    Personally, I wouldn't open up a new company.

    Just have 'ReassuringlyBlandName Ltd t/a QuirkyTestName' and register 'QuirkyTestName' as a brand name later on if it takes off in popularity, to deter copycats.

    Annual returns are boring and 2 x annual returns are twice as boring.
     
    Posted: Aug 7, 2018 By: TODonnell Member since: Sep 23, 2011
    #9
Thread Status:
Not open for further replies.