Ltd Company Names

[cbjroms]

I am purchasing a company which has been operated by a sole trader under a
trading name.

On purchase, I intend to operate it within a Ltd company. So I am wondering
whether it is better to form a Ltd company using the trading name (ie
trading name Ltd) or to use another name for the Ltd company (ie Bloggs Ltd
trading as the trading name).

The only consideration, as I see it, is naming the company as the trading
name protects that name from others.

Has anyone advise me?

Chris (Hampshire)

 

[Dave]

I am purchasing a company which has been operated by a sole trader under a
trading name.

On purchase, I intend to operate it within a Ltd company. So I am wondering
whether it is better to form a Ltd company using the trading name (ie
trading name Ltd) or to use another name for the Ltd company (ie Bloggs Ltd
trading as the trading name).

The only consideration, as I see it, is naming the company as the trading
name protects that name from others.

Has anyone advise me?

Chris (Hampshire)

depends what the name is and if it's already registered.
also if it's "like" an existing limited co. name.

You could consider the availability of it's domain name for your site
and email address.

Dave

 

[Jonathan Bryce]

I am purchasing a company which has been operated by a sole trader under a
trading name.

Er? Either you are purchasing a company, or you are purchasing a sole
trader business. Please decide.

On purchase, I intend to operate it within a Ltd company. So I am
wondering whether it is better to form a Ltd company using the trading
name (ie trading name Ltd) or to use another name for the Ltd company (ie
Bloggs Ltd trading as the trading name).

I would form a company as Trading Name Ltd, and have that company buy the
sole trader business. If the name isn't available, then you would have
problems using it as a trading name anyway.

The only consideration, as I see it, is naming the company as the trading
name protects that name from others.

Yes

 

[Martin]

Er? Either you are purchasing a company, or you are purchasing a sole
trader business. Please decide.

Disagree. A company is not necessarily a Limited Company - though it's a
common mistake. Here, the OP's use of the term "sole trader" makes it clear
the business is not incorporated.

I would form a company as Trading Name Ltd, and have that company buy the
sole trader business. If the name isn't available, then you would have
problems using it as a trading name anyway.

Can simplify banking too.

Yes

It's important to distinguish between the "protection" that no-one else can
have an identically named Ltd Company, and the quite separate issue of
others trading under the same name as your Ltd Coy.

 

[Jonathan Bryce]

Disagree. A company is not necessarily a Limited Company - though it's a
common mistake. Here, the OP's use of the term "sole trader" makes it
clear the business is not incorporated.

Yes, there are one or two unlimited companies around, but the distinction
still applies.

 

[Troy Steadman]

Yes, there are one or two unlimited companies around, but the distinction
still applies.

There are squillions of unlimited companies around, Company just means
"body of persons combined for common (esp commercial) object" (COD),
Smith & Co is a partnership but is also a company.

 

[Alan Terry]

depends what the name is and if it's already registered.
also if it's "like" an existing limited co. name.

You could consider the availability of it's domain name for your site
and email address.

Chris,

Dave makes a very good point (whilst others discuss a few
technicalities!) - I have a recent client who actually set his company
up as: "Abcdefg.com Ltd" then found someone else already had the domain
name and was using: www.abcdefg.com - poor planning on his part.

If you are not familiar with the process of buying a domain name for
your e-mail / website, please get in touch - I will do the purchasing
steps for you as a favour (you'll only need to pay the £20-60 to a
hosting company depending on what services you want, but I can talk you
through the options).

01903 248463 if you want to chat.

This offer is also open to anyone else in a similar position for
themselves or their clients.

If anyone is wondering, I help run a network of book-keepers in
Surrey/Sussex (hence my interest in this group), but I'm also:
http://yoursuccess.uk.com and happy to have my brains picked on web-
related matters.


Regards,