Register multiple businesses or one?

ibz75

Hi all,

I am setting up an ebay biz selling used items, a web-based biz selling new items, and another biz buying used items. Each biz will have a different name and logo, but will trade in the same products.

I will be starting as a Sole Trader. Would I have to register each biz individually, or can I use an 'Umbrella' biz to cover all 3?

Is any one else doing something similar? (i.e. running multiple companies, but essentialy doing the same thing)

Thanks

Pennywise

ibz75 wrote: »

Hi all,

I am setting up an ebay biz selling used items, a web-based biz selling new items, and another biz buying used items. Each biz will have a different name and logo, but will trade in the same products.

I will be starting as a Sole Trader. Would I have to register each biz individually, or can I use an 'Umbrella' biz to cover all 3?

Is any one else doing something similar? (i.e. running multiple companies, but essentialy doing the same thing)

Thanks

Sounds like the same business to me as all are buying & selling - you've just got different "branches" for which you can have separate trading names and brand identity etc. You deal with it by them being Fred Smith t/a ABC and Fred Smith t/a DEF etc. You do realise that you have to make your customers aware of your name and address and can't "hide" behind a business name as a sole trader. Also as a sole trader, it is "you" who becomes liable to register for VAT on all your separate businesses, it's not done on a separate business by business basis. If you want truly separate businesses, i.e. different trades, etc., and for them to be kept separate for VAT and other tax purposes, you'd need a string of limited companies which is prohibitive in terms of cost and hassle for a relatively small simple business set-up.

paulwf

You'll be missing out on a huge amount of cross marketing. Ebay fees are high but they drive customers to your products. The trick is to then include a flyer (and maybe an incentive) for your own webshop when you send their items. It'll be much more effective than advertising your site elsewhere.

It just seems daft to me...you're dealing with the same products so why triple the amount of marketing effort involved? It is very hard to get webshop customers as it is.

From the logistical point of view you'll also potentially need 3 paypal accounts, 2 credit card terminals, 3 phone lines, 3 PO boxes, 3 lots of logos to get designed etc etc.

Why not start by creating one really strong image for your company and focus all your efforts on that in the beginning and see how it goes?

ibz75

Pennywise & paulwf,

Thank you for your comments. Some really useful information.

Basically I will be buying, restoring, and re-selling. If I did that with 1 ebay ID/shop wouldn't potential customer's be put off by seeing how much I was buying a particular item for, and then re-selling?

I thought by having two seperate buying and selling companies, I would be able to cut out the middle-man, and also keep my prices 'secret'.

Each business will have the same physical address.

Doesn't the 'Trading As' only apply if you have a Ltd company?

paulwf

It might be worth heading over to the Ebay forum on this board for up to date advice as I'm a little rusty on the latest Ebay rules.

I would probably set up an Ebay buying account and set the feedback to private. You don't need a company image for it, and if you are a sole trader list your contact details minus the company name. That will keep that side of things really simple.

For your Ebay selling account and website use the same branding and contact info etc. This will make admin much easier and you can cross promote all your sites. You could also promote the fact that you buy or part ex if you wish, they don't need to know about your Ebay buying account for that.

That should be enough to keep the casual browser from seeing your buying and selling trail. If someone really wants to be nosey they will find out the info on Ebay anyway. Luckily a majority of people won't bother and anyway you are restoring and then selling as a business...most sane people will understand that. You might get the odd person miffed that you bought something off them and made a profit but so what? The pros of keeping it simple and reinforcing your marketing far outweigh the con of getting a complaint once in a blue moon about you legitimately making a profit!

ibz75

paulwf wrote: »

It might be worth heading over to the Ebay forum on this board for up to date advice as I'm a little rusty on the latest Ebay rules.

I would probably set up an Ebay buying account and set the feedback to private. You don't need a company image for it, and if you are a sole trader list your contact details minus the company name. That will keep that side of things really simple.

For your Ebay selling account and website use the same branding and contact info etc. This will make admin much easier and you can cross promote all your sites. You could also promote the fact that you buy or part ex if you wish, they don't need to know about your Ebay buying account for that.

That should be enough to keep the casual browser from seeing your buying and selling trail. If someone really wants to be nosey they will find out the info on Ebay anyway. Luckily a majority of people won't bother and anyway you are restoring and then selling as a business...most sane people will understand that. You might get the odd person miffed that you bought something off them and made a profit but so what? The pros of keeping it simple and reinforcing your marketing far outweigh the con of getting a complaint once in a blue moon about you legitimately making a profit!

Wonderful advice!!! Thank You! :beer: