Where to start?

[fewey]

Hi guys,

I'm sure this question has been asked a number of times in various different ways but I would appreciate your input.

I am currently employed full time but on evenings and weekends I do some coaching. I get paid for this and the eventual goal is to do it full time, I have a website for my coaching and would like to register the name as a company name.

What is the best way for me to trade so that I look professonal but also in a way that is cost efective? All income at present goes towards me further educating myself so I am not making any profit.

Thank you,

[Eric Mc]

Do you want to run your coaching activity as a sole trader or through a limited company?

[fewey]

I am not sure which is the best way to trade, it is just me on my own. I charge by the hour for my coaching but in the future will have other ways of earning money through the business.

[Eric Mc]

fewey said:

I am not sure which is the best way to trade, it is just me on my own. I charge by the hour for my coaching but in the future will have other ways of earning money through the business.

You are therefore a sole trader at present and presumably have already generated some business activity - so technically have already commenced trading.

There is no "registration" required for trade names. The only registration initially required is notifying HM Revenue and Cistoms that you have commenced trading.

[robm3]

I think i know what you mean.

I've used these guys in the past, pretty efficient and set you up with dedicated email, domain etc...

www.start.biz/multi_search.php

[fewey]

Thanks Eric, The only things is that I am keen to own the name so no one else uses it. I have a domian name and a brand as such that I use but it isnt official. So if someone else came along they could nab it.

[Eric Mc]

fewey said:

Thanks Eric, The only things is that I am keen to own the name so no one else uses it. I have a domian name and a brand as such that I use but it isnt official. So if someone else came along they could nab it.

As a sole trader you cannot "own" a trade name. If you have been enticed to register a trading name as a sole trader with some "body", you have effectively been scammed - as it has not conferred any additional legal protection to you over the use of that name.

If you set up a business as Jenny Smith trading as "Fantastic Life Coaches", the is nothing to stop anyone else setting up another business also called "Fantastic Life Coaches". The only legal redress you might have against someone else using the same trading name as you would be if you could prove in a court that they were "passing off". In other words, they were trying to fool potential customers that they were dealing with your business, rather than another business with the same name.

You CAN register "Brand Names", "Trade Marks", Logos" etc but they are not "Trade Names" as such.

[fewey]

Thanks again Eric, what would be the implications of setting up a company with me and my wife as directors? Or something along those lines so that I can own the the company and the name?

[Eric Mc]

fewey said:

Thanks again Eric, what would be the implications of setting up a company with me and my wife as directors? Or something along those lines so that I can own the the company and the name?

You would then definitely have a limited company which would have a name that no other limited copmpany could have.

However, that still doesn't protect the "trading as" type trading name.

If you do set up a limited company, you MUST be aware of the legal and tax respnsibilities that arise once the company comes into existence - even if it isn't actually trading.

[fewey]

I appreciate your time and advice Eric, I guess I should speak to an accountant and find out the costs both ways. I know the whole "name" thing can be fueled by ego but as I said before I own a good domain and I have a good (all be it a small one) brand that I like and looks good infront of customers.

[bogwoppit]

Business Link do free seminars to explain the whys and wherefores of the different ways of starting a business, e.g. ltd company vs sole trader, do I need an accountant, tax. There is also a lot of info online.

If you want to register the name, you need to run a ltd company. This carries a fairly significant administration overhead and a more complicated tax system that you will need to understand. It may or may not be a tax advantage.

[Eric Mc]

bogwoppit said:

Business Link do free seminars to explain the whys and wherefores of the different ways of starting a business, e.g. ltd company vs sole trader, do I need an accountant, tax. There is also a lot of info online.

If you want to register the name, you need to run a ltd company. This carries a fairly significant administration overhead and a more complicated tax system that you will need to understand. It may or may not be a tax advantage.

And, as I have already said, it only prevents another company being registered at Companies House using that exact same name.

It will NOT stop a company or an individual, using a very similar trading name.

Example.

You have a limited company XYZ Consultants Ltd. It trades using that limited company name.

Another limited company called ABC Ltd uses the trade name "XYZ Consultants". They are perfectly entitled to do that - unless, as I said earlier, you can show that they are trying to generate business for themselves using YOUR company name as a lead in to potential sales for them.