Making my existing business a subsidiary of a newly formed limited company

Shaun-M

Hi all, I'm new to this forum, but value your advice here. I have been running an established business as a sole trader for the last five years (let's call it ABC for simplicity). However I have new areas of business sales coming in too so I intend to do them via a newly formed limited company (let's call it XYZ LTD). Am I able to advertise the original business " ABC, a subsidiary of XYZ LTD?" Thanks for any replies!

martindow

A limited company is a legal entity in itself so I would not think you could say say that ABC is a subsidiary of XYZ unless XYZ has been set up to do this.

But you need to ask your accountant rather than people on a forum making speculations!

antrobus

Shaun-M wrote: »

Hi all, I'm new to this forum, but value your advice here. I have been running an established business as a sole trader for the last five years (let's call it ABC for simplicity). However I have new areas of business sales coming in too so I intend to do them via a newly formed limited company (let's call it XYZ LTD). Am I able to advertise the original business " ABC, a subsidiary of XYZ LTD?" Thanks for any replies!

No.

But XYZ LTD could take over the sole trader business and you could have XYZ LTD trading as ABC.

If you want ABC to become a subsidiary, XYZ LTD would have to form another company ABC Ltd.

Shaun-M

Thanks for the replies martindow and Anthony's - I'll go down the T/A route as advised. Great advice :-)