Company name

[007]

Hi everyone.

I'm thinking of starting my own business and have a few questions if anyone can help.

I'd start out as a sole trader but was wandering about choosing a name.

Now could I register a company name i.e. Monkey Nuts Services and then register different names for each service that I provided i.e. MonkeyPlumbing, MonkeyElectrics as seperate entities all belonging to Monkey Nuts Services etc?

Also would someone else be able to use the name Monkey Nuts Services Ltd as a limited company after I had already setup as Monkey Nuts Services (sole trader)?

Thanks.

[Brian Turner]

Heh, you'll almost certainly be persuaded out of the idea by a registered accountant - at least, I was when I was asking about this the other week.

As a sole trader you have fiscal responsibility only for your own self-trading company. The name you choose shouldn't be too much of an issue - unless you're planning on coveting any established brand names.

Now, as an accountant will be able to advise, there are different advantages for sole traders, and registered companies - namely in terms of tax and income. Generally, where your income is low (ie, in the tens of thousands, rather than 100's of thousands) AND your liabilities are low, then it can make sense to remain as a sole trader because you can withdraw more income from your business without having to pay so much tax.

However, if you have significant financial liabilities (such as large borrowing concerns) then you will certainly need to become a registered company to protect your personal assets from being liable to pay off any outstanding debtors you may have.

Now, the rub comes when you own a string of company names - you would effectively need to do the books for every single business entitiy - and would likely end up paying for an accountant to do the books for *each* of these companies. If your accountant is charging £1,500 to audit the yearly books for each company, then you can appreciate that the costs can increase.

Generally, you'll find that it may well be best to concentrate on developing a single company, and although keep your expansion plans in mind, only go for it when you feel that the financial situation demands advantages from doing so.

Ideally, though, you would need to speak with a registered accountant - they should be able to provide much clearer and more detailed information on the entire matter.