Setting Up as a Sole Trader

funnymummy

Hi, please can some one help me as I am getting kind of confused .

My husband is setting up himself as an Electrician and we have a company name which I am assuming we have to register. I did a search on this forum and there is some advice about registering a company name. I have been looking on some of them and they seem to refer more to LTD companies.

Do you have to register in the same way for sole traders as a ltd company?

Please any advice would be great?
thanks
Cath

scbk

If you're just (going to be) a sole trader then you should check around various business directories to check that your prefered business name isn't already in use by someone else.
You can't really protect your trading name unless you reg as a limited company.

You can use just your trading name (as an example, "Speedy Electrical Services") for stuff like advertising etc. But on offical paperwork like receipts you must use "John Smith trading as Speedy Electrical Services".

justpaper

LTD companies have more paper work, if you think you need the benefits of a LTD it may well weight out the paper work issue, but from the 1 man band sparky's i know all of em are sole traders (self employed) unless hes making 500k - 1million a year i dont think its worth being LTD

Rossy2692

I started as a sole trader in July, after getting advice from an accountant they said it was not really woth becoming a Ltd company unless i earn 35k or more, so I think I will be staying as a sole trader then! :rotfl:

Tooticky

I too think you have no reason to become a limited company there is a lot of extra administration, but i couldn't pass this thread by without mentioning that the only way to protect your trading name is to register the trademark, it's relativly simple and will cost about £200, (http://www.ipo.gov.uk/) you'll need to complete a TM3 form http://www.ipo.gov.uk/tm3.pdf (guidence notes http://www.ipo.gov.uk/tm3notes.pdf)

You 'can' pay for an additional search but if it's only a text name then you can seach the database yourself http://www.ipo.gov.uk/tm/t-find/t-find-text.htm you'll need to identify the class(s) that the business is involved in... I can't advise you here although class 11 does cover types of electical installation.

You can't protect some generic or descriptive names e.g. "reliable electrician" you'll waste your money.

Worse come to the worse call them, they're very helpful, good luck

Tooticky

After reading my thread above, it looks like i have posted a commercial thread, but it's not, it's the UK intellectual property office who are the official government trademark office.

impecunious

Best advice: go and talk to Buisness Link
http://www.businesslink.gov.uk/bdotg/action/home?domain=www.businesslink.gov.uk&target=http://www.businesslink.gov.uk/

I have recently set up my own business and Business Link have been fantastic with its advice. The most you ever pay for a 3 hour plus workshop is £10 + VAT and the initial one is free. Be quick, as the workshops are nearly at an end and will not resume until after Christmas. Professional advice at a very affordable price. :beer:

I am off to Scarborough for a workshop on taxation and bookeeping on Monday. It is a 90 mile round trip. I can't wait as I have a thousand and one questions in my head that need answering! If I can give you another piece of advice, Cath, the more you prepare for the start of your business, the easier it will be later on. Hubby has potential to earn a lot of money and it could be costly to make the wrong choice before he actually earns any! :eek:
There is no reason why you cannot wait and see what is the best option for hubby later on, say, after three months of trading. To me, it's only a name and there's more important things to do my start up money and time at this moment in time.

Good Luck!!

barrymung

A sole trader?

If I was going into the fish mongery business I wouldn't restrict myself to a single type of fish! Cod maybe but sole, no.

<Mung thinks>

Ahhh! That sort of sole trader!

Wig

I don't think you have to register any company name LTD or otherwise. Your declaration to the IRS that you are becoming self employed, will have a space for "company name" you just put your surname in there.

Just paint the side of your van with your name/company name but no need to register as a company. That's what I think, you could ask your acountant for advice.

Tooticky

I suppose this is just a thought, but there are advantages into incorporating a company and that’s limited liability… sole traders are not afforded the protection that shareholders have , if your husband were to set up a limited company you wouldn’t have to worry about having a roof over your head if it didn’t work out.

And besides it does often portray to potential customers that he is more reputable because he has this additional accountability and can’t disappear with someone life savings?

mikewebs

Hi there

There is an information leaflet at:

http://www.companieshouse.gov.uk/about/pdf/gbf1.pdf

this gives you some of the advantages of the different types of company that can be formed. I would look particularly at the Single Member Company. I would agree that the Ltd protection hugely reduces problems should the business ever fail (god forbid).

HTH